Ann Arbor, Michigan, is known for having the highest Social Security income among retirees in the United States, according to a recent report. The average amount of Social Security income for retirees in Ann Arbor stands at $30,428, as per a SmartAsset analysis.
Social Security benefits are based on the amount of taxes paid into the system during one’s working years, with higher income translating to a larger benefit. However, there is a cap on monthly payments, with the maximum amount set at $3,822, as noted by the AARP.
Other cities with high retiree Social Security income include Carmel, Indiana; Goodyear, Arizona; Cambridge, Massachusetts; Allen, Texas; Sugar Land, Texas; The Woodlands, Texas; Highlands Ranch, Colorado; Olathe, Kansas; and Fishers, Indiana, which rounds out the top 10 list with $27,133 in Social Security income.
It’s important to note that Social Security income is just one component of retirees’ total income. When considering mean retirement account incomes, Ann Arbor ranks 12th overall, while Arlington, Virginia, leads with a total of $90,140, taking into account income from pensions, 401(k)s, IRAs, and other accounts.
The study analyzed data from 345 cities, highlighting the various levels of income that retirees receive across the country. Each city’s ranking reflects the financial landscape for retirees in that particular area, shedding light on the overall retirement income picture in the United States.
Understanding the distribution of retirement income in different cities provides valuable insights into the financial well-being of retirees nationwide. By examining factors such as Social Security benefits and additional retirement account incomes, individuals can better prepare for their own financial futures as they plan for retirement.