Delaware to Indiana: 10 US states where retirees can live on Social Security alone - Study

Social Security remains the cornerstone of retirement income for millions of Americans, but new research highlights just how far those benefits can stretch and where they fall short. A Realtor.com analysis compared median Social Security benefits with the Elder Economic Security Standard Index, which tracks older adults’ basic living expenses. The results reveal that benefits alone are enough to cover costs in only 10 states, while retirees in most of the country face annual shortfalls.

The study comes at a critical time, as a report from the Senior Citizens’ League (TSCL) noted that nearly three-quarters of older Americans rely on Social Security for more than half of their income, and 22 million seniors depend on it entirely.

The analysis indicates that housing is the single most significant factor in determining whether retirees can make ends meet. While food, health care, and transportation remain relatively steady across states, housing costs vary sharply. In the 10 surplus states, retirees spend about $510 a month on housing.

In shortfall states, that figure rises to nearly $933, and in some East Coast states it exceeds $1,000. The difference means housing swallows up nearly 27 percent of budgets in surplus states but climbs to 32 percent in deficit states.

Also read: Social Security's 2026 COLA forecast rises — what it means for retirees

According to Newsweek, retirees in Delaware fare the best with a surplus of $1,764 a year. The state’s median monthly benefit of $2,139 comfortably covers the monthly costs of $1,992. Other top-performing states include: Indiana (+$1,392), Arizona (+$1,224), Utah (+$888), and South Carolina (+$828).

The report also added that surplus groups are in West Virginia, Alabama, Nevada, Tennessee, and Michigan.

At the opposite end, Vermont shows the largest annual gap, with retirees facing an $8,088 deficit. Monthly costs there reach $2,628, compared with a median benefit of $1,954. Close behind are New Jersey (-$7,512), Massachusetts (-$7,345), New York (-$7,248), and New Hampshire (-$6,564).

For retirees in these states, housing costs alone can erase the value of monthly benefits.

The results demonstrate the growing geographic dependence of retirement security. Instead of mortgages, rising property taxes, insurance, and utility costs are driving up housing costs.

This entails adding part-time employment, savings, or family support to Social Security for a large number of retirees. Meanwhile, there is mounting pressure on policymakers to address the issues of senior housing affordability as well as Social Security's funding shortage.

Only 10 states currently have low enough costs for retirees to cover basic expenses with benefits alone.

Delaware ranks highest, leaving retirees with a surplus of about $1,764 a year.

Vermont, New Jersey, Massachusetts, New York, and New Hampshire have the largest deficits.

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