I’m a New York Retiree: 4 Ways I Spend My Social Security
Written by
J. Arky
Edited by
Levi Leidy
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There is a romanticized image of living in New York City — the hustle and bustle, along with the extravagant restaurants, fashion and culture. But many people do not live that lifestyle in New York, with lots of residents not even living inside the city limits, but upstate in various other towns. This includes a significant number of retirees.
In fact, retirees paid nearly $2 billion in real property taxes in 2021, which amounts to about 3.1% of the total collected in New York statewide, according to the Retired Public Employees Association, which estimates that there are close to 500,000 retirees who call the Empire State home.
GOBankingRates spoke with a retiree in Somers, New York, who wished to remain anonymous, about the ways that they spend their Social Security benefits to live in one of the most expensive states in the nation.
“I do not specifically use my Social Security payments to purchase any one item,” the Somers retiree said. “My monthly amount is an automatic deposit to my bank account. In addition, my New York State retirement pension is also an automatic deposit and they both arrive on almost the same date each month. This allows me to use these funds for all necessary expenses.”
Here are the four ways this New York retirees spends their Social Security.
Groceries
Everyone has to eat, including retirees. While some might like to go out and hit up their favorite restaurants on occasion, many try to make their Social Security dollars stretch every month by meal planning, cooking at home and shopping at their local grocery store.
This Somers New York retiree mostly uses a “…credit card for grocery shopping and dining out.” Then, at the end of the month, pays off the credit card with part of their Social Security check. “I always have payment on my two credit cards and that varies month to month, ranging from $200 to $1,500,” the retiree shared.
Travel
Being able to travel during retirement can be considered either a luxury or a right, depending on who you ask. After all, once retirees have clocked out of the workplace for the last time, there is a lot of space on the calendar for travel, not to mention plenty of destinations locally and internationally to check out.
Thanks to their Social Security benefits, this New York retiree can go almost anywhere they want and use the funds from their monthly check to help do that. Though, they noted that their “many earlier travel expenses have been reduced significantly” due to being on a fixed income and that lots of travel related expenses could be qualified as transportation with their payment on a car lease at $389 per month.
This means that much of their current out-of-town travel is by train to New York City to meet up with friends and family or catch the latest show on Broadway.
Utilities
Retirees might not be working, but there are still bills to pay. Everything from gas, electric, water, internet and cable, amongst others. Living in New York, the winters can get extremely cold while the muggy summers can get scorching hot.
“My electric [bill] depends on usage of heat/AC, stove for cooking and all other electric use,” said the Somers retiree, who has to keep an eye on this with additional expenses that include rent at $3,500 a month.
However, this same retiree mentioned that having the ability to pay their utility bill with their Social Security benefits is a prime example of what the program was designed to do: allow retirees to pay their cost-of-living expenses each month.
Taxes
Another fact of life that does not escape anyone, including retirees: taxes. New York State is known for having some higher taxes across the board, which retirees still have to pay even though they are not working. Social Security benefits, while also taxed as income, can help offset the amount that retirees send to the local and federal government.
The Somers New York retiree noted how Social Security is great for paying a variety of costs, one of which “includes any taxes that I need to pay during the year.” This includes property taxes, which in Westchester County is about 1.62% of a property’s assessed fair market value, one of the highest median property tax rates in the United States.
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