Yes, you can afford to retire by the beach on Social Security in 2023. You can even afford to buy a house. The low cost of living on the Mississippi Gulf Coast is the reason why you can afford to live on Social Security alone. Your social security income can pay the median rent, and cover living expenses so you can live a comfortable life. Mild winters and warm summers along with healthcare services attract people from the largest cities.
Our calculations are based on two Social Security incomes. One at the average monthly benefit of about $1,450 per month and another at $2,400 per month. These amounts are typical for full retirement age benefits. The lower cost of living on the Mississippi Gulf Coast permits Social Security retirees to enjoy their golden years.
Mississippi is one of the best states for retirees regardless of their source of income. If you have retirement savings to supplement, don’t worry about the State taking it in taxes.
The Mississippi Gulf Coast is tax-friendly
Mississippi is among a few tax-friendly states where none of your retirement income is taxed by the state. This includes your Social Security check 401k withdrawals, pensions, etc. Let’s get back to the topic which is how you can afford to live in one of the best cities for less. Did I mention our beautiful beaches? By the way, our beaches are open 24/7.
Housing prices on the Mississippi Gulf Coast are among the lowest in the nation. This is a key reason why people can afford to retire comfortably on the Mississippi Gulf Coast.
You have choices along the Mississippi Gulf Coast. You can rent or buy. Housing prices and rents are among the lowest in the nation. The Mississippi Gulf Coast is far removed from the high cost of for example Los Angeles or other big cities. Our cost of living is lower than that metropolitan area you want to move from.
Starting with your monthly budget, we will explore what a monthly rent payment and utility bills would look like. Great news, almost all medical facilities accept medicare and offer good healthcare in exchange. Doctors in some larger cities and metro areas no longer accept Medicare so the fact that healthcare providers in this area do is good news.
Use our budget tool to determine what you can afford
We offer a great budget tool for you to use. The following is a sample budget prepared to show your Social Security income in a sample budget using estimates for costs. The cost estimates are based on real data from the Mississippi Gulf Coast. To use the tool, click here. We suggest that you read the entire article so you understand how to use the tool. Then, download the tool onto your computer and fill in the blocks.
See the example budget below
As mentioned above, the model below uses $1,450 and $2,400 as income. Some will have only Social Security as a monthly income stream and others will have investment income as well. Investment income does not always payout every month. When you want to access your investment income you must withdraw it. Follow the instructions on how to use nest egg to supplement your Social Security payments in the model.
This model has two options loaded. One is a rental payment and the other is a mortgage payment. The rental payment is loaded as MS Gulf and the mortgage is loaded as OPT 2. The “Current Home” column is blank as this is for your to complete in your model. The mortgage payment has principal, interest, insurance, and taxes factored in a single amount.
A rental house you can afford on Social Security
The following is an ad from the internet for a nice house you can rent on the Mississippi Gulf Coast for $1,000 per month. This house is not on the beach but it is close, you can walk to the beach. This is just one example of the rents charged in the area. You can rent for less than $1,000 per month but it will be further from the beach.
Buy a house on Social Security alone
I will discuss how you can buy a house on Social Security alone later in this article. As an example, let’s focus on the monthly payment only. Another assumption we have made is that you have one vehicle.
Having one vehicle reduces the cost of ownership e.g. insurance, registration, maintenance, etc. If you can live with one car leave it as is. If you want to retain two cars, make the changes on the downloaded tool. The model below also does not factor in any memberships or extraneous costs e.g. a boat, motor home, etc. It’s best to start with a minimalist approach and build back if there are funds remaining after the expenses.
The insurance co-payment and mobile phone amounts are for two persons combined. The property we found includes water, sewer, and trash so zeros in those blocks. Minimal amounts are placed in other blocks.
The good news is that this budget indicates there are funds remaining after expenses. $694.13. More good news. The house below that we found for you to rent is a one-bedroom, one-bathroom within walking distance of the beach. If you don’t mind living a mile or more inland, you may find rental property for under $1,000 per month.
No state taxes, possibly federal income taxes
The Federal income tax listed is what would be owed on the 85% of Social Security income that is taxable. Your actual taxes on this amount will vary. With the large deduction afforded to a couple of $25,100 per year, you may pay zero for Federal and State income taxes. Should this be the case for our situation your excess cash in the model could increase by up to $490.88.
Perhaps you do not have a car payment, take that out. You can see with some modeling back and forth, you can work out a budget that works for your fixed income. Stop living in one of those expensive cities anymore.
You will be living near the beach or even a bayou. Can you see how your retirement plans can include relocation to the Mississippi Gulf Coast? You will enjoy those sunny days while avoiding high taxes and paying less for gasoline. Many people currently living in urban areas have no idea what they can do with little research. Now that you have discovered our miles of shoreline let’s get into some detailed information about how you can buy a house.
Check out the cost to buy the house above
Back to the budget tool above. the OPT2 column has information about buying a house. The cost of real estate is low enough here that most people with only Social Security income can afford to own. Note that many costs are the same, the actual housing costs will change as you can see. The following are the factors we used to calculate your mortgage payment.
Selling price: $112,950
Downpayment: Zero with USDA loan
Finance amount: $112,000
Interest rate: 6%
Loan term: 30 years
Loan payment with tax, and insurance: $963.91
Notes: Mortgage insurance premium is added to the monthly payment. The above does not include closing costs estimated at $5,500. This is a USDA loan, click here for details. This is an estimate only subject to your lender completing the calculations. Logan-Anderson, Gulf Coastal Realtors would like to be your realtor for the transaction. The example house above is from the Logan-Anderson website. The example house was for sale in June 2022.
Homes in the area start under $100,000. As a rule the closer to the beach the higher the price.
Please note that the price for a house is nearly identical to renting (using the above example). The rent is for a one-bedroom, one-bathroom house while the purchase at about the same price is for a three-bedroom, one-bathroom house. More room for the same price. If you buy, you will be responsible for cutting your grass and maintenance which should be added to the spreadsheet. On the other hand, it’s your
Tell me where you can live for less
The challenge that I give to everyone is: Tell me where you can live for less than the Mississippi Gulf Coast? The answer is usually, I do not know. It’s time to convince you that moving to the Mississippi Gulf Coast is the right move. You can see from the above that the cost of housing is reasonable.
The cost of renting and buying a house can be lower if you are willing to look around and live away from the beach. There are many great areas around the Mississippi Gulf Coast to live in.
![Cost of Living Comparison of Selected States [infographic]](https://i0.wp.com/retirecoast.com/wp-content/uploads/2022/05/Cost-of-Living-Comparison-of-Selected-States.png?resize=1024%2C523&ssl=1)
Moving on, a discussion of other costs is appropriate. The chart above lists costs that people like you living on Social Security will have to pay. The chart has only a few states and they are representative of the ones left off the list Note that Mississippi consistently indicates lower costs than most of the other states on the list.
Why would you want to pay 18 cents per kWh for electricity in California when you can pay 9.13 cents in Mississippi? Take a good look at the average home rental cost. None of the other states are even close to the Mississippi average, The cost of rentals and homes on the Mississippi Gulf Coast will be somewhat higher than the state as a whole. Housing is still more affordable compared to other states
Even water rates are lower
Even water rates are lower in Mississippi than in all but the state of Florida. Only three states on the list have lower natural gas rates than Mississippi. And finally, look at the average cost of a home compared to all of the other states. These rates are just the start.
If you are buying a house and you are 100% disabled you pay zero property taxes. Buy a lifetime fishing license for less than $8. If you are buying a house, you will receive a very large deduction when you reach 65. Because your social security income is not subject to the state income tax you save there.
The cost of food is considered at least 15% lower than in most other areas of the country. Go to one of the marinas and buy just-caught shrimp directly from the boats. Electricity and water are usually lower in cost along the Coast than in other states.
Should you retain one car, you can use public transportation to get around. Can you start to see why the Mississippi Gulf Coast is a popular retirement destination?
Social Security benefits go further In Mississippi
Social Security retirement benefits go further in Mississippi than in any state. Our small city feel is inviting. The only time you see crowds and traffic is when special events are taking place. If you love to golf, we have plenty of golf courses that are open to the public at low rates. This is just a great place to live.
If you want to supplement your Social Security benefit with a job, there are lots of parts and full-time jobs available. Employers love to hire retirees, they work hard and show up for work on time.
After you have been here for a couple of years you will have realized that it was a good idea to move to the lowest cost state in the nation. My wife and I love to drive down our miles of beaches and enjoy easy access to the beaches. We have only two major highways, U.S. 90 and I10. There is no need for more with a population of less than 500,000 in all of the Gulf Coast counties. Our beach towns are small and each has its character.
Lots of Activities for Retirees on the Mississippi Gulf Coast.
Between the senior centers, yacht clubs, and other social clubs, there is much to do for retirees. Many of the activities you can engage in are low or no cost. I mentioned that $ 8-lifetime fishing license. Why not go fishing on the beach, bayous, or many public piers. Not only is there no cost save the cost of bait, but you can also eat for free. Throw a basked out and catch blue crab. Throw a net and catch shrimp.
Free concerts, Mardi Gras
Walk on the beach. Go to the many parks, and attend free concerts and events held all year long. View a Mardi Gras parade for free. There are so many outdoor activities including the use of the many tennis courts there is no excuse for staying at home. Time to get out your financial planner and take a good look at relocating to the Mississippi Gulf Coast. Want another good reason?
If you live in a state such as California that taxes 401k withdrawals, move to the Mississippi Gulf Coast then take your withdrawal state tax-free. Many do just that. Your retirement account is yours. You will pay federal taxes but there is no need for you to pay state taxes.
That’s a major difference between living on the pacific ocean or the Atlantic ocean, and lower taxes than those states. You will have to establish permanent residency in Mississippi first or those states will chase you down for their tax money.
Social security benefits were earned. Unfortunately, so many areas of the country price out people who only have their Social Security benefits to live on. On one hand, you will have to move somewhere affordable, on the other, the Mississippi Gulf Coast is a wonderful place to live. In the end, you will be in a better place, the best in the entire country for the cost of living.
Investigate buying vs renting
If you are considering a move to the Mississippi Gulf Coast, one of the best ways to make that move is to first determine through the budget tool how much rent or house you can afford. Use the link provided below to view available homes.
The key to a successful move is planning. The housing market is tight in 2022. It may take a while to locate a house or even an apartment. Just give yourself sufficient time to find a rental or buy a home.
As your loan officer will tell you, the debt to income ratio (click on the left for a free debt to equity calculator) is important. It’s one thing to live on Social Security alone and another when you have lots of debts. Generally, you will need at least 55% of your gross social security income after paying all costs including housing. The 55% includes any debt showing on the credit bureaus plus your mortgage payment.
The budget example above shows $125 for a car payment and $100 for a credit card payment. Those are the only two items that would show up. That’s a total of $250.00 plus the house payment of about $1,000. A total of $1,250 which is under the allowed $1,472.
The example shows you could qualify to buy a home
In this example, you would qualify for a loan assuming your credit scores were adequate. This is the type of information that you can get from your loan broker. There are several articles on this website that can help you with your decision. A few of those articles are outlined below. Follow the links provided for additional articles that can help you make the right decision. Educate yourself.
Using the budget tool, you should consider all possible expenses. Read the article about the budget tool before you use it. Be sure to download it so you can save it. I am sure you will go back to it on occasion.
If you can save before retirement, do so. Living on Social Security alone can be done with two incomes. Even with one income, a single person can make it work as long as the amount is sufficient. Should you be in a position where you do not have two Social Security checks, you should consider renting a room in a house.
Some residents along the Coast will rent a room for less than $600 per month. You will have to look around, and check websites and the local media ads.
Use the equity in your home to buy a new lower-cost one
Some people have equity in their existing homes. They sell their existing home and move to the Mississippi Gulf Coast. If you are one of those lucky enough to have sufficient equity to pay cash for a home on the Mississippi Gulf Coast great. I would suggest that you consider putting those funds into dividend investments to help supplement your living expenses.
You may earn more every month on the savings than your house payment. It’s something to consider.
One of the budget items that eludes many are healthcare costs as you age. Your budget may look good now but if medical costs escalate and the co-pays are too high, you will have to dip into some savings to cover those extra health care costs. Medicare is a good plan and as mentioned most doctors do accept Medicare. The medical care costs generally lower her for quality health care and are below the national average but you never know.
A financial planner can help
It’s the unknowns that you can help compensate with any savings or equity from the sale of a house. If you can afford to spend time with a financial planner, you should do so before putting a large down payment on a house. It’s one thing to put down 20% or more when you are 50, it’s another when you are in your late 60s or older.
You may need those funds for something important later in life. With inflation running high now and the value of the U.S. dollar not being what it was, better to be cautious.
Retire by the beach on Social Security alone, do you think you can do it on the Mississippi Gulf Coast? About friends and relatives. They will all want to come and visit. If you can afford a two or three-bedroom place to live, it may be full more often than you think. It’s hard to move away from those you love but they will not be paying your living expenses.
When I moved to the Mississippi Gulf Coast a few years ago, I asked my adult children if they would support me if I stayed in California. Of course, they could not and I would not let them.
Friends and relatives will want to visit
Regardless, they will understand and they can visit, y’all can visit and you both can use FaceTime. Most people will want to visit the beach. Even if you do not live on or within walking distance of the beach it’s easy to visit. Just pull up alongside in one of the many free parking spots and have fun.
I have not mentioned the casinos because generally, one thinks of a person retiring on Social Security alone as being frugal. This may not be so as a magnet to draw your friends and family to visit you.
When my family visits, we usually take a trip to the casinos for food and they all like spending time there. It’s great that your visitors can have so many things to do. Go see alligators, visit New Orleans, fish, swim, and visit one of the many amusement areas for kids. Have a bbq on the beach using one of the many fire rings.
Tell them to come during Mardi Gras or Cruzin-the-Coast. The point is that you need not be lonely when you come to live on the Gulf Coast. Many retirees live here so you will feel right at home.
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Resources
Why I decided to retire in Ocean Springs, Mississippi
Why you need to retire on the Mississippi Gulf Coast
You can buy a house on Social Security Alone in 2022
Social Security “myAccount” Check your account here, find out how much you will earn.
