Cities where retirees' Social Security benefits stretch the furthest in 2025

LendingTree is out with its list of which cities are best for retirees to stretch their Social Security benefits the most this year. 

In the 100 largest U.S. cities, retirees need about $71,400 a year before taxes to cover their expenses. On average, Social Security pays about $21,500, which covers just 30% of that amount, according to Lending Tree. 

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What they’re saying:

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“Most aren’t fortunate enough to have a seven-figure nest egg or a pension to lean on. Most people have tight budgets, limited expendable income and low retirement account balances,” Matt Schulz, LendingTree chief consumer finance analyst, said. “It’s all going to add up to a challenging situation for retirees and their loved ones in the next 15 to 20 years.”

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This Texas city tops the list for retiree affordability

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Dig deeper:

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Of the 100 largest U.S. metro areas, only one—McAllen, Texas—has Social Security covering more than a third of retirees’ expenses. In McAllen, retirees need about $61,821 a year before taxes, and the average Social Security income is $21,398, covering 34.61% of those costs.

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Buffalo, New York, comes next, where Social Security covers 33.12% of retirement costs. Retirees there need about $68,176 before taxes and receive an average of $22,581 in Social Security. El Paso, Texas, ranks third, with retirees needing $65,143 and getting $21,398 from Social Security, covering 32.85% of expenses.

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California cities see the lowest share of retiree costs covered by Social Security

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Dig deeper:

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It’s no surprise that California, one of the most expensive states to live in, ranks lowest when it comes to how much of retirees’ expenses are covered by Social Security. In fact, eight of the 10 metros where Social Security covers the smallest share of retirement costs are in California.

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San Francisco ranks lowest, with retirees needing about $85,364 before taxes and receiving just $20,726 from Social Security—only 24.28% of expenses. Los Angeles follows, with a need of $83,414 and the same average Social Security income, covering 24.85%. Washington, D.C., comes in third from the bottom at 24.91%.

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Experts share financial tips 

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What you can do:

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Experts are offering these tips for those nearing retirement:

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• Save as much as you can. Most people can’t count on Social Security alone, so the more you save — and the earlier you start — the better.
• Focus your spending. Living on a fixed income is tough. Cut out non-essential expenses and align your budget with what truly matters.
• Tackle high-interest debt. Credit card debt drains your budget. Look into 0% balance transfers, low-interest loans, or ask your issuer to lower your rate.

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