Retirement Social Security

10 Popular States Where Social Security Benefits Don't Come Close to Covering the Cost of Living

Social Security benefits might not go far if you live in one of these places with a high cost of living.

By Michelle Smith

Edited by Chris Kissell

Updated Jan. 22, 2025

Social Security benefits are an essential source of income for most seniors. But that monthly check might not take you very far if you live in an expensive state.

Recently, AARP used the Elder Index to compare Social Security benefits to the cost of living in various places.

The index is a tool developed by the University of Massachusetts Boston's Gerontology Institute that helps determine how much money seniors aging in place need to ensure basic needs are met.

Based on those metrics, these are the ten states where Social Security benefits don't stretch far, and retirees will need supplemental income.

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New Hampshire

Average monthly Social Security benefit: $2,094

Monthly cost of living: $2,976

Percent covered by benefits: 70.4

Nearly all of the top 10 states where Social Security benefits don't stretch far are located in New England. The cost of living in New Hampshire is about 15% higher than the U.S. average, according to World Population Review.

Fortunately, you can save money on groceries in New Hampshire, as these costs are about average when compared to the rest of the country.

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Connecticut

Average monthly Social Security benefit: $2,114

Monthly cost of living: $3,010

Percent covered by benefits: 70.2

Connecticut is the ninth-best place for seniors to retire to, according to the Global Residence Index, which measures quality of life. The state has an above-average life expectancy and high level of social support, which makes it an attractive retirement spot.

However, your benefits won't stretch as far here, so you will need to be strict about budgeting.

Maryland

Average monthly Social Security benefit: $2,054

Monthly cost of living: $2,945

Percent covered by benefits: 69.7

Maryland's proximity to several major U.S. cities makes it an attractive retirement location for seniors who want to enjoy big-city perks without the high housing costs of large metros.

Still, Maryland's cost of living is relatively high, so it can be a stretch to make ends meet.

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Vermont

Average monthly Social Security benefit: $1,961

Monthly cost of living: $2,905

Percent covered by benefits: 67.5

More than 22% of Vermont's population is over the age of 65, so this can be a good place for seniors seeking community connection.

However, if you don't care for bitterly cold winters or a high cost of living — including state taxes on Social Security income for some residents — it probably isn't your dream retirement destination.

New Jersey

Average monthly Social Security benefit: $2,110

Monthly cost of living: $3,174

Percent covered by benefits: 66.5

New Jersey's cost of living is higher than the national average. Along with high housing costs, the state is notorious for its high property taxes.

So, you might want to think twice before retiring here if minimizing housing costs in retirement is a must for you.

California

Average monthly Social Security benefit: $1,866

Monthly cost of living: $2,931

Percent covered by benefits: 63.7

It's no secret that California is one of the most expensive places to live in the nation, and that's just as true for retirees as for the rest of the population.

Retiring to a state with a lower cost of living, lower taxes, and fewer property-threatening wildfires can free up your budget. You might even save enough cash to vacation in California.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

Massachusetts

Average monthly Social Security benefit: $2,033

Monthly cost of living: $3,209

Percent covered by benefits: 62.4

If you decide to retire to Massachusetts, your wallet might have to keep working overtime. World Population Review says living costs in the state are a whopping 48% higher than the national average.

Apart from the cold — a deal-breaker for many sun-loving retirees — the state's high cost of living makes it a less-than-desirable retirement spot for budget-conscious seniors.

District of Columbia

Average monthly Social Security benefit: $1,917

Monthly cost of living: $3,114

Percent covered by benefits: 61.6

Washington, D.C., is a fascinating place to retire if you love U.S. history and politics. However, it's less appealing for those interested in a low cost of living.

Plus, the notoriously gridlocked traffic makes travel difficult. This is probably not the place to call home if you want peace and quiet during your golden years.

Hawaii

Average monthly Social Security benefit: $1,908

Monthly cost of living: $3,105

Percent covered by benefits: 61.4

As an island state, Hawaii has to import just about everything, which makes the cost of goods much more expensive than what many mainlanders are used to.

The state's expensive housing costs and high income taxes contribute to its status as an unfriendly state for anyone on a fixed income, including seniors.

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New York

Average monthly Social Security benefit: $1,951

Monthly cost of living: $3,175

Percent covered by benefits: 61.4

New York is one of the least affordable states in the nation, and that goes double for seniors who lean heavily on Social Security to supplement their retirement income.

However, if you retire to a smaller city in the state that is far from New York City, your Social Security dollars will stretch a little further, helping you to get ahead financially.

Bottom line

Cost of living plays a major role in how far your Social Security benefits stretch.

Following the right strategies — from picking up a part-time job to making the most of senior discounts — can maximize your retirement savings so you can stretch Social Security benefits as far as possible, no matter where you live.

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