Coastal insurance costs of $6,000-$9,000 annually strain budgets, consuming nearly a third of a $30,000 retirement income.
Retirees in Myrtle Beach, South Carolina, can bridge a $2,500 monthly income gap with just $125,000 in savings if relying on average Social Security benefits. However, coastal wind, flood, and hazard insurance premiums range from $6,000 to $9,000 annually, consuming up to 30% of a $30,000 retirement budget.
Housing costs further pressure budgets, with one-bedroom rentals averaging $1,384 to $1,629 monthly. Median home prices between $269,000 and $325,000 make purchasing impractical without full equity. Early retirees aged 55-60 face higher savings targets of $800,000 to $900,000 due to lack of Social Security income and ACA healthcare costs.
South Carolina’s low taxes and warm climate attract retirees, but planners often underestimate insurance expenses, which outweigh everyday living costs in coastal areas.