7 Reasons You Need at Least $659K (Plus Social Security) To Retire in South Carolina

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South Carolina can be a great state to retire in. The state gets plenty of sun, with warm summers and mild winters, and there are lots of opportunities for outdoor activities like hiking and boating. The Palmetto State is also known for its culture, music and history. 

Another plus for South Carolina retirees is that the state doesn’t tax Social Security benefits and has a $10,000 deduction for retirement income, along with some of the nation’s lowest property tax rates.

So how much would you need to save to retire in South Carolina? According to our analysis of cost-of-living data from the U.S. Bureau of Labor Statistics, the average American will need at least $659,112 for a 20-year retirement in the state. Here are a few reasons.

The Average Social Security Benefit Is Only $21,567 Per Year

The median Social Security payout is only $21,567 per year. Since the national average cost of living is around $57,818 for an adult over 65 years old, most Americans need some other form of income or savings to make up the difference.

Some states also tax Social Security benefits, making what retirees get even smaller. Luckily, South Carolina has no state tax on Social Security.

The Yearly Cost of Living for Retirees in South Carolina Is $54,522

The average South Carolinian adult aged 65 or older spends $54,522 yearly on essentials like groceries, housing, transportation and healthcare. This is 5.7% less than the national average.

When you take South Carolina’s cost of living and subtract the median Social Security benefit, you’re left with $32,955. That’s how much money retirees will need to cover on their own for each year of their retirement.

By that math, a 20-year retirement in South Carolina costs $659,112, a 25-year retirement costs $823,890 and a 30-year retirement costs $989,658.

Groceries Cost South Carolina Retirees $4,701 Annually

In South Carolina, groceries will cost you $4,701 annually, about 2% less than the national average of $4,797. You may be able to stretch your grocery budget further by shopping at local farmers’ markets and chain discount stores.

A few South Carolina grocery chains offer senior discounts. Harris Teeter gives everyone 60 or older a 5% discount on Thursdays, as long as you sign up for its free Club 60 membership. Piggly Wiggly also offers a 5% discount to all shoppers who are 60 or over, with no membership required. 

Housing Costs South Carolina Retirees $9,435 a Year

Housing costs stand at $9,435 a year in South Carolina, nearly 19.3% lower than the national average of $11,692. If you’re moving from a more expensive state, it could give you some breathing room in your budget, since housing is most retirees’ biggest cost.

If you’re a South Carolina resident and you’re looking to cut your costs, you may be able to downsize to a smaller home that suits your needs better or move to a cheaper area. Some towns — such as Florence, Sumter and Columbia — have lower home prices than the rest of the state.

Utilities Are Pricey in South Carolina

The annual cost for utilities in South Carolina is $4,744, approximately 12% above the national average of $4,236. This is the one area where the cost of living is higher than average, and it’s also something the state is known for. South Carolina routinely appears in reports as one of the states with the nation’s highest electricity and gas costs.

You can optimize your energy usage by upgrading to more efficient appliances or installing a smart thermostat for better control over the heating and cooling in your house.

South Carolinians Spend $4,513 Annually on Transportation

Transportation expenses are about 8.7% lower in South Carolina — $4,513 annually compared to the $4,943 national average. If you’re looking for ways to save money, a great way to do so in the long run is to maintain your vehicle regularly. This helps extend your car or truck’s longevity while avoiding costly repairs.

Healthcare in South Carolina Costs $6,922 Annually

Healthcare costs in South Carolina are approximately 8.2% lower than the national average, with annual expenses averaging $6,922 compared to $7,540. 

You can lower your overall healthcare expenses by taking proactive steps to manage your health, such as going for regular checkups and maintaining a healthy lifestyle. Before buying medication, compare the costs at different pharmacies — you may find a generic version that works just as well for a fraction of the price.

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