Map Shows States Where Retirees Can Live On Social Security Alone

Social Security forms the bedrock of retirement income for tens of millions of Americans. But rising housing expenses are making it harder for retirees to live comfortably on Social Security, with new data showing that benefits alone are only enough to cover costs in 10 states.

A new analysis by Realtor.com has found that Social Security benefits alone are now enough to cover the cost of living in only 10 states. Everywhere else, retirees face annual shortfalls that can add up to thousands of dollars depending on where you live.

The study compared median Social Security benefits by state with the Elder Economic Security Standard Index, which tracks the basic living costs of older adults. It found that the cost of homeownership has risen 26 percent in just the past five years, driven not by mortgage payments but by property taxes, insurance, utilities and maintenance. Those “hidden” costs mean the average retiree still falls about $2,762 short each year—roughly $230 a month—even with no mortgage.

These figures land at a time when Social Security remains very important in helping seniors afford life after work. A report from The Senior Citizen’s League (TSCL) shows nearly three-quarters of older Americans rely on Social Security for more than half their income. For 39 percent of seniors, benefits are their only source of income. TSCL estimates nearly 22 million people nationwide live solely on Social Security.

Housing Costs Make or Break Retirement

The data point to one major driver in how far Social Security can stretch: housing. While food, health care and transportation costs remain relatively steady from state to state, the price of keeping a roof over one’s head varies widely.

In the 10 surplus states, housing averages about $510 a month. In the shortfall states, that figure climbs to nearly $933—and in many East Coast states, it surpasses $1,000. That difference shifts housing from 27 percent of a retiree’s budget in surplus states to 32 percent in shortfall states.

Where Social Security Stretches the Farthest

Some states do offer retirees a bit of financial breathing room. Delaware tops the list, where mortgage-free retirees have an annual surplus of $1,764. Median monthly benefits there are about $2,139, while monthly costs come to $1,992.

Indiana follows with a $1,392 surplus, supported by a median benefit of $2,016 and relatively modest housing expenses of $504 a month. Arizona (+$1,224) and Utah (+$888) show similar results, each with median benefits close to $2,000 and housing costs around $530. South Carolina rounds out the top five, with retirees ahead by $828 each year.

The remaining states where Social Security alone is enough are West Virginia (+$660), Alabama (+$576), Nevada (+$432), Tennessee (+$156) and Michigan (+$132).

Where Retirees Face the Biggest Gaps

On the other end of the scale, retirees in Vermont face the largest deficit. The state shows an $8,088 annual shortfall, with total monthly costs of $2,628 against a median benefit of $1,954.

New Jersey (-$7,512) and Massachusetts (-$7,345) follow closely, with housing bills of $1,304 and $1,007 a month driving much of the gap. New York (-$7,248) and New Hampshire (-$6,564) also appear among the five toughest states for living on Social Security alone.