On average, Social Security benefits replace approximately 40% of the income a retiree earned while working. It may be more for those who worked low-wage jobs, but less for retirees who had higher-wage careers. However, among those 65 and older, 42% of women and 37% of men receive at least 50% of their income from Social Security.
Unless those Social Security recipients have other sources of income, such as an employer-sponsored retirement plan, Social Security benefits can fall woefully short.
For some retirees, the answer is to relocate to a new area, either in the U.S. or internationally. It's about finding a place they want to live, and just as importantly, a place they can afford to live. They seek an area where their monthly benefits stretch further than average.
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States that make it easier
Using 2024 payment information from the Social Security Administration (SSA) and cost-of-living data from the University of Massachusetts, Boston's Gerontology Institute's Elder Index, AARP crunched the numbers to learn how far benefits stretch in all 50 states and the District of Columbia.
Here are three tables. They each indicate where single retirees 65 or older and in good health can get the most from their monthly benefits. However, the first table reveals the best states for a retiree with a mortgage. The second indicates the best for retirees without a mortgage, and the third shows the best states for retirees who rent.
Raw data is from the Elder Index, a tool from the University of Massachusetts, Boston's Gerontology Institute, which measures how much aging Americans need to meet basic needs. Cost-of-living numbers are drawn from federal data on housing, healthcare, food, transportation, and other essentials, including phone service, clothing, and household products.
These findings do not include spending on entertainment, gifts, or recreation. In addition, they don't take state income or sales taxes into consideration.
Best for retirees with a mortgage
|
State |
Average retirement benefit |
Basic monthly expenses |
% of monthly expenses covered by Social Security benefits |
|---|---|---|---|
|
Indiana |
$2,034 |
$2,238 |
90.9% |
|
West Virginia |
$1,898 |
$2,165 |
87.7% |
|
Alabama |
$1,920 |
$2,202 |
87.2% |
|
Tennessee |
$1,958 |
$2,286 |
85.7% |
|
South Carolina |
$1,996 |
$2,337 |
85.4% |
Data source: AARP
Best for homeowners without a mortgage
|
State |
Average retirement benefit |
Basic monthly expenses |
% of monthly expenses covered by Social Security benefits |
|---|---|---|---|
|
Delaware |
$2,171 |
$1,992 |
109% |
|
Arizona |
$2,020 |
$1,874 |
107.8% |
|
South Carolina |
$1,996 |
$1,860 |
107.3% |
|
Indiana |
$2,034 |
$1,900 |
107.1% |
|
Utah |
$2,065 |
$1,933 |
106.8% |
Data source: AARP
Best for retirees who rent
|
State |
Average retirement benefit |
Basic monthly expenses |
% of monthly expenses covered by Social Security benefits |
|---|---|---|---|
|
Indiana |
$2,034 |
$2,178 |
93.4% |
|
Alabama |
$1,920 |
$2,117 |
90.7% |
|
Kansas |
$2,055 |
$2,274 |
90.4% |
|
Michigan |
$2,066 |
$2,297 |
89.9% |
|
Iowa |
$1,992 |
$2,230 |
89.3% |
Data source: AARP.
Because most retirees aren't interested in uprooting themselves and leaving everything familiar behind to move to another state or country, planning for a comfortable retirement involves making housing, healthcare, and lifestyle choices that fit into their expected monthly budget.
