STUDY SAYS SOCIAL SECURITY DOESN’T GO FAR IN COLORADO

Social Security recipients collect $1,295 a month on average, but that payment won’t cover basic living costs in any state, including Colorado, according to a survey from HowMuch.net and GoBankingRates.

That monthly payment covers only 36.3 percent of basic living costs in Colorado, ranking the state 11th worst for coming up short. Hawaii, California, Massachusetts, Alaska and New York are the toughest states for those trying to get buy on just Social Security, while Arkansas, West Virginia, Oklahoma, Alabama and Mississippi are where payments go the furthest.

But even in Arkansas, average Social Security payments only covered 52.9 percent of living costs. In 45 states, Social Security doesn’t cover half of basic living costs, as defined by the study.

In Colorado, monthly living costs included a median rent of $1,925, an average grocery bill of $298, an average utility bill of $262, average transportation costs of $574 and average health care costs of $513, according to the study.

The study didn’t adjust Social Security payments by geography, and areas where expenses are higher tend to have higher incomes and higher payouts in retirement. Also, the living costs calculated were for all households, not just retirees, who make up the biggest share of recipients.

For example, financial advisers recommend consumers pay off their mortgage and car loans before retiring. Leaving those out could reduce living costs in retirement, but the number of people who can do that is shrinking. But health care costs rise as people age.