Americans tend to be highly competitive. We compare the records of our favorite sports teams. We see how our grandkids' grades stack up against our friends' grandkids.
This competitiveness doesn't end at retirement. And for some, it can even extend to how much money they make relative to others. Are you beating the average Social Security benefit for retirees in your state? Here's what you need to know.
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State-by-state Social Security average benefits
You won't have to guess how your Social Security benefits stack up against others in your state. The Social Security Administration (SSA) regularly provides data that shows exactly what the retired worker benefits are for each state and congressional district. Following are the average monthly Social Security benefits for retired workers by state (all amounts rounded to the nearest dollar):
| State | Avg. Monthly Benefit | State | Avg. Monthly Benefit |
|---|---|---|---|
| Alabama | $1,781 | Montana | $1,792 |
| Alaska | $1,759 | Nebraska | $1,850 |
| Arizona | $1,867 | Nevada | $1,770 |
| Arkansas | $1,719 | New Hampshire | $1,944 |
| California | $1,787 | New Jersey | $2,020 |
| Colorado | $1,869 | New Mexico | $1,724 |
| Connecticut | $2,020 | New York | $1,874 |
| Delaware | $1,988 | North Carolina | $1,828 |
| District of Columbia* | $1,822 | North Dakota | $1,775 |
| Florida | $1,814 | Ohio | $1,783 |
| Georgia | $1,783 | Oklahoma | $1,782 |
| Hawaii | $1,824 | Oregon | $1,834 |
| Idaho | $1,800 | Pennsylvania | $1,895 |
| Illinois | $1,855 | Rhode Island | $1,884 |
| Indiana | $1,887 | South Carolina | $1,846 |
| Iowa | $1,839 | South Dakota | $1,767 |
| Kansas | $1,898 | Tennessee | $1,811 |
| Kentucky | $1,730 | Texas | $1,789 |
| Louisiana | $1,690 | Utah | $1,901 |
| Maine | $1,734 | Vermont | $1,873 |
| Maryland | $1,960 | Virginia | $1,896 |
| Massachusetts | $1,910 | Washington | $1,933 |
| Michigan | $1,918 | West Virginia | $1,770 |
| Minnesota | $1,924 | Wisconsin | $1,875 |
| Mississippi | $1,689 | Wyoming | $1,869 |
| Missouri | $1,792 | U.S. Average | $1,825 |
Data source: Social Security Administration. *Included but is not a state.
Note that these numbers were released in April 2023 but were from December 2022. The actual average benefits for retirees have almost certainly increased somewhat since then and will soon rise even more. All Social Security beneficiaries received an 8.7% cost-of-living adjustment (COLA) in 2023. They'll get another 3.2% increase in 2024.
It's also likely that the influx of new retirees into the Social Security system has impacted the averages since the end of 2022. Since the average U.S. household income typically (although not always) increases each year, newly retired individuals could have higher Social Security benefits because their lifetime earnings were greater than previous retirees.
Why your Social Security benefit could be higher or lower than the average for your state
The odds are very low that your Social Security retirement benefit matches the average for your state. Why is your benefit higher or lower than the average? It boils down to how SSA calculates Social Security benefits.
SSA uses the 35 years when you earned the most money in its formula. If a person doesn't have 35 years of earnings eligible for Social Security, their benefits will be lower than they would otherwise be.
In a nutshell, your Social Security retirement benefits will be higher than the average for your state if you earned more during your career than the average person did. The opposite is also true: If you earned less during your career than the average person in your state did, your Social Security retirement benefits will be lower than the average.
This also explains why the average retired worker benefits vary quite a bit from state to state. The average income in states such as Connecticut or New Jersey is well above the average in states such as Louisiana and Mississippi.
What really matters
How you compare to others isn't all that important in the big scheme of things. What really matters is that you have enough money to retire comfortably.
Every person should check the earnings history that SSA has on file to make sure the information is correct. If you spot an error, let the agency know. It's possible that your benefits could be adjusted.
There's also another way that your retirement benefits could be increased. If you filed for retirement benefits before your full retirement age (FRA) and continued to work, SSA will automatically adjust your benefits if your earnings were higher than what you made in any of the 35 years used to initially calculate your benefits. Keep in mind, though, that SSA could also deduct from your benefits if you make above a specified annual limit. However, you'll get the withheld money back once you reach your FRA.
