Many generations of retirees used to believe that once they had cleared their mortgage, Social Security benefits would be enough to cover their other needs in retirement. Unfortunately, that safety net is disappearing, and in many states, Social Security benefits are barely enough to live on. According to a new nationwide analysis, retirees can now afford to live on Social Security alone in only 10 states.
In other states, retirees will find themselves with huge deficits, adding up to thousands of dollars, even without a mortgage.
Why Retirees Can’t Rely Solely on Social Security Anymore
According to The Senior Citizens League (TSCL), 22 million seniors rely solely on Social Security benefits for their daily needs. For almost three-quarters of seniors, Social Security benefits constitute more than half of their income. However, Social Security was never designed to be the only source of income in retirement. The rising living costs are making this more evident.
Of all costs that retirees have to cover, housing takes the largest chunk. A new study from Realtor.com found that the costs of owning a home have risen by 26% in just five years. On average, a retiree, even without a mortgage, ends up with a deficit of about $230 per month, equivalent to about $2,762 per year.
How Housing Shapes Your Retirement Budget
While healthcare costs, transportation, and food remain relatively steady across states, housing costs vary. In the 10 states where retirees can live on their Social Security benefits, housing costs are about $510 a month. In the other states, housing costs are close to $933 and as high as $1,000 in East Coast states.
According to these figures, housing costs take up about 27% of a retiree’s monthly benefits in cheaper states and 32% in expensive states. The difference of 5% adds up to a big difference and determines whether you end up with some change or a deficit.
The States Where Social Security Still Stretches
These 10 states are the rare exceptions where retirees can survive on benefits alone.
| State | Avg. Monthly Benefit | Monthly Living Costs | Surplus (+) / Deficit (-) | Annual Difference |
| Delaware | $2,139 | $1,992 | + $147 | + $1,764 |
| Indiana | $2,016 | $1,900 | + $116 | + $1,392 |
| Arizona | $2,012 | $1,910 | + $102 | + $1,224 |
| Utah | $2,036 | $1,962 | + $74 | + $888 |
| South Carolina | $2,011 | $1,942 | + $69 | + $828 |
| West Virginia | $1,980 | $1,925 | + $55 | + $660 |
| Alabama | $1,994 | $1,946 | + $48 | + $576 |
| Nevada | $2,022 | $1,986 | + $36 | + $432 |
| Tennessee | $2,005 | $1,992 | + $13 | + $156 |
| Michigan | $2,019 | $2,008 | + $11 | + $132 |
Source: Realtor.com & Social Security Administration data, 2025
The States Where Retirees Struggle the Most
At the other end of the scale, several states are practically impossible for retirees who rely solely on benefits
| State | Avg. Monthly Benefit | Monthly Living Costs | Deficit (-) | Annual Gap |
| Vermont | $1,954 | $2,628 | – $674 | – $8,088 |
| New Jersey | $2,076 | $2,702 | – $626 | – $7,512 |
| Massachusetts | $2,042 | $2,655 | – $613 | – $7,345 |
| New York | $2,093 | $2,698 | – $605 | – $7,248 |
| New Hampshire | $2,018 | $2,564 | – $546 | – $6,564 |
In these states, even above-average Social Security benefits are insufficient to pay for steep property taxes, costly insurance, and higher utility bills. Retirees living in these states and solely relying on Social Security can end up with a deficit of thousands of dollars every year.
What This Means for Retirees
The findings indicate that the state in which you live matters as much as your income. While a retiree in Delaware may have some surplus at the end of each year, a retiree in Vermont is likely to end up with a deficit of about $8,000.
Due to the deficit, some may be forced to relocate, downsize, or find additional sources of income. Retirees who rely solely on Social Security may have only one viable option, which is to relocate to a lower-cost state.
The Harsh Reality for Future Retirees
Although Social Security benefits provide a much-needed lifeline, their limitations are clearer than ever. Given the housing costs that are always on the rise, these benefits will always be eroded. Unfortunately, even the annual cost-of-living adjustments (COLA) aren’t enough to cover up the rising cost of housing.