Social Security was once seen as one part of a "three-legged stool" of retirement funding, the other two sources being personal savings and a pension income. But if you're like most Americans today, you don't get a pension, and you find saving on your own to be increasingly difficult as costs continue to rise faster than wages.
Some people find themselves with little more than their Social Security checks to see them through retirement. Depending on your lifestyle and where you live, this could actually work out. But it's still a gamble that's not worth taking if you can avoid it.
Image source: Getty Images.
Living off Social Security could be possible in some states
Recently, I did some digging into how far Social Security checks go in each state. I looked at the average Social Security benefit by state and compared it to the estimated annual income required to live independently in each state, as measured by UMass Boston's Elder Index. I focused specifically on data for single adults in good health.
Knowing that the average senior household spends around $60,000 per year, according to the Bureau of Labor Statistics, while the average annual Social Security benefit is only around $24,000 as of January 2025, I expected to find that living comfortably on Social Security alone wasn't realistic for anyone. But I was surprised.
The data revealed that typical renters and homeowners who still have mortgages couldn't live independently on the average Social Security benefit in any state. But homeowners without mortgages could cover all their basic expenses with their benefits checks in the 22 states shown in the table:
|
State |
Average Annual Social Security Benefit (2024) |
Estimated Annual Income to Live Independently in Retirement |
Percentage of Expenses That the Average Social Security Check Will Cover |
|---|---|---|---|
|
Delaware |
$26,954.64 |
$23,904.00 |
112.76% |
|
Utah |
$25,740.14 |
$23,196.00 |
110.97% |
|
Arizona |
$24,813.33 |
$22,488.00 |
110.34% |
|
Colorado |
$25,807.39 |
$23,892.00 |
108.02% |
|
Indiana |
$24,624.96 |
$22,800.00 |
108.00% |
|
South Carolina |
$23,965.89 |
$22,320.00 |
107.37% |
|
Nevada |
$22,864.58 |
$21,660.00 |
105.56% |
|
North Carolina |
$24,176.04 |
$22,908.00 |
105.54% |
|
Tennessee |
$23,677.59 |
$22,440.00 |
105.52% |
|
Alabama |
$22,826.56 |
$21,660.00 |
105.39% |
|
Minnesota |
$26,915.88 |
$25,848.00 |
104.13% |
|
Idaho |
$23,972.08 |
$23,232.00 |
103.19% |
|
Virginia |
$26,082.93 |
$25,332.00 |
102.96% |
|
Georgia |
$23,247.49 |
$22,680.00 |
102.50% |
|
West Virginia |
$22,144.82 |
$21,672.00 |
102.18% |
|
Wyoming |
$24,807.01 |
$24,312.00 |
102.04% |
|
Florida |
$23,700.50 |
$23,244.00 |
101.96% |
|
Pennsylvania |
$25,512.77 |
$25,056.00 |
101.82% |
|
Michigan |
$25,054.19 |
$24,672.00 |
101.55% |
|
New Mexico |
$22,924.64 |
$22,692.00 |
101.03% |
|
Washington |
$26,540.27 |
$26,520.00 |
100.08% |
|
Missouri |
$23,656.16 |
$23,640.00 |
100.07% |
Data source: Social Security Administration and UMass Boston's Elder Index.
There are a few caveats, though. First, we're only looking at average data here. If you live in a city with above-average living costs and you receive a below-average Social Security benefit, retiring on Social Security alone still might not be possible for you. On the other hand, you may be able to live off just your benefits in a state not on this list if you live in an area with a low cost of living and receive above-average checks.
Second, the estimates don't take into account federal Social Security benefit taxes that some seniors could owe. In addition, residents of Colorado, Minnesota, New Mexico, Utah, and West Virginia could owe state benefit taxes. These taxes could make living off Social Security benefits alone impossible, even if you receive average or above-average checks.
Why I wouldn't bank on retiring on Social Security alone
Even if you think living off Social Security could be in the cards for you, I wouldn't recommend it. As the table shows, the margin for error in nearly all the states is razor-thin. If you have higher-than-average expenses one year, perhaps due to an insurance claim or a health problem, your Social Security benefits probably won't be enough to cover the extra bill.
It's also worth pointing out that the estimated incomes the Elder Index calculated focused exclusively on necessities -- food, transportation, healthcare, housing, and some miscellaneous items like clothing. It didn't account for extras like hobbies or travel. If you want that to be a part of your retirement, you'll almost certainly need to save more. That increases the likelihood that Social Security alone won't cut it.
Even if you're not able to save much for retirement on your own, it's worth setting aside what you can. A few hundred dollars today could be worth thousands by retirement after you've invested them for a few decades. The more you're able to save on your own, the better you'll be able to weather whatever comes your way.
