Living on Social Security: A big question for retirees
If you’re like millions of Americans, you’ve probably wondered whether Social Security alone could cover your retirement. After all, these benefits are the main source of income for nearly 22 million people nationwide. For some, it’s a supplement. But for many, it’s everything.
The challenge is that living costs keep rising, especially housing. A new analysis by Realtor.com shows that Social Security is enough to cover basic expenses in only 10 states. Everywhere else, retirees face annual shortfalls—sometimes thousands of dollars.
So, where does Social Security stretch the farthest? And where do retirees struggle most? Let’s break it down.
Why Housing Costs Matter the Most
When people think of retirement expenses, they often picture food, medical bills, or transportation. But the biggest deciding factor isn’t groceries or gas—it’s housing.
The study found that retirees without mortgages still pay a lot in property taxes, insurance, utilities, and maintenance. These “hidden” costs push housing to about $933 a month in shortfall states, compared to only $510 a month in surplus states.
That difference is huge. It turns housing into either a manageable 27% of a retiree’s budget—or a crushing 32% or more. And when you’re living on a fixed income, that 5% gap really stings.
The 10 states where Social Security is enough
Here’s the good news. There are still some states where Social Security checks stretch far enough to cover the basics.
- Delaware – Retirees here actually end up with a small surplus: about $1,764 a year. Median monthly benefits are around $2,139, while costs are $1,992.
- Indiana – Benefits average $2,016 a month, and housing costs are just $504. That leaves retirees ahead by $1,392 annually.
- Arizona – Warm weather, relatively low housing costs, and a surplus of $1,224 a year.
- Utah – Retirees end up with about $888 extra annually, thanks to moderate costs and nearly $2,000 monthly benefits.
- South Carolina – Seniors finish the year about $828 in the green.
The other five states with small surpluses are:
- West Virginia (+$660)
- Alabama (+$576)
- Nevada (+$432)
- Tennessee (+$156)
- Michigan (+$132)
So if you’re looking for a place to stretch Social Security, these states are the most promising.
Where Retirees Struggle the Most
Unfortunately, the picture isn’t as bright in much of the country. In fact, in some states, retirees face big financial gaps even without a mortgage.
- Vermont – The hardest state, with retirees short by $8,088 a year. Median benefits are $1,954, while costs climb to $2,628 monthly.
- New Jersey – Retirees fall behind by $7,512 annually, mainly because of sky-high property taxes and insurance.
- Massachusetts – A shortfall of $7,345 a year.
- New York – Seniors here face a gap of $7,248 annually.
- New Hampshire – Retirees come up $6,564 short each year.
These states highlight how expensive the Northeast can be. Housing, utilities, and taxes eat up far more than Social Security provides.
Why this matters more than ever
Here’s the tough part: this isn’t just about numbers on a chart. It’s about real people deciding whether they can stay in their homes, pay medical bills, or even buy enough groceries.
Nearly three-quarters of seniors rely on Social Security for more than half their income, and for many, it’s their only income at all. Losing even $230 a month—about the average shortfall—can mean real sacrifices.
And with food prices rising and healthcare costs not slowing down, these shortfalls may hit harder in the coming years.
What this means for you
If you’re planning retirement—or already there—this study is a wake-up call. Where you choose to live can make the difference between a small surplus and a crushing deficit.
You don’t have to move, of course. But knowing the numbers can help you plan better, whether that means downsizing, looking at different states, or finding ways to supplement Social Security with part-time work or savings.
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