Realtor.com Analysis Reveals Top States for Living Solely on Social Security Benefits

What's Happening?

A recent analysis by Realtor.com has identified ten states in the U.S. where retirees can live solely on Social Security benefits without facing a financial deficit. Delaware leads the list with an annual surplus of $1,764, followed by Indiana and Arizona, which have surpluses of $1,392 and $1,224, respectively. Other states in the top ten include Utah, South Carolina, West Virginia, Alabama, Nevada, Tennessee, and Michigan, with Michigan barely making the list with a $132 surplus. The analysis highlights the significant role of housing costs in determining the financial viability of living on Social Security benefits. In states with a surplus, retirees spend an average of $500 per month on housing, whereas in deficit states, the average housing cost is nearly $933 per month. Vermont is identified as the least favorable state for living on Social Security, with beneficiaries facing an annual deficit of $8,088.

Why It's Important?

This analysis is crucial for retirees and those planning for retirement, as it underscores the financial challenges of living solely on Social Security benefits in many parts of the U.S. The findings highlight the disparities in living costs across states, particularly in housing expenses, which significantly impact retirees' financial stability. For policymakers, this data could inform decisions on adjusting Social Security benefits or addressing housing affordability to better support retirees. The analysis also serves as a guide for individuals considering relocation in retirement, providing insights into where their benefits might stretch further.

What's Next?

The Social Security Administration is set to announce the Cost of Living Adjustment (COLA) for 2026 on October 15, which could impact the financial outlook for retirees. This adjustment aims to align Social Security benefits with inflation, potentially altering the financial landscape for those relying on these benefits. Stakeholders, including policymakers and retirement planners, will likely monitor these adjustments closely to assess their adequacy in addressing the cost of living disparities highlighted by the analysis.