10 States Where Social Security Covers the Most

Most retirees count on Social Security as a core part of their income, but how far those benefits go depends a lot on where you live. Because costs like housing, health care, and transportation vary widely from state to state, Social Security benefits stretch much further in some states than others.

The FinanceBuzz data below compares average annual expenses for people aged 65 and older with the average Social Security payment in each state, showing what percentage of those expenses Social Security covers. Here are the 10 states with the highest percentage of annual expenses covered by Social Security, which can allow you to maximize your senior benefits.

Tennessee

Social Security covers: 42.0% of annual expenses

For Tennesseans aged 65 and older, average annual expenses are $55,827, while the typical Social Security benefit is $23,458. Lower housing and utility costs help benefits stretch further than in many states.

Tennessee's lack of a state income tax on Social Security also makes it easier for retirees to rely more heavily on monthly benefits.

Michigan

Social Security covers: 42.2% of annual expenses

Michigan retirees face average yearly expenses of more than $58,500, paired with relatively strong average Social Security payments of about $24,700.

While costs are higher than in some Midwestern states, benefits are also above average. This balance helps Social Security cover a significant share of core expenses, especially for retirees living outside of major metropolitan areas.

Missouri

Social Security covers: 42.2% of annual expenses

In Missouri, older adults spend about $55,000 per year on average, while Social Security payments average $23,235. Affordable housing and everyday costs, particularly in smaller cities and rural areas, play a major role.

These lower expenses allow Social Security income to cover more than two-fifths of typical retirement spending.

Alabama

Social Security covers: 42.3% of annual expenses

Alabama retirees benefit from average annual expenses of around $54,343 and Social Security payments of $22,962. Lower-than-average housing, transportation, and health care costs contribute to this higher coverage rate.

For retirees on fixed incomes, Alabama's generally affordable cost structure makes Social Security a stronger foundation for covering essential expenses.

Nebraska

Social Security covers: 42.5% of annual expenses

In Nebraska, relatively strong average Social Security payments pair with moderate living costs. Average expenses are $56,630, while the average Social Security payment is $24,053.

Housing remains affordable in much of the state, and everyday expenses are manageable for retirees, allowing benefits to cover a larger portion of annual costs than in many higher-cost regions.

Iowa

Social Security covers: 42.8% of annual expenses

With average annual expenses of $55,827 and Social Security payments of $23,867, Iowa ranks solidly on the list.

Affordable housing and stable costs for necessities help benefits go further. This makes Iowa appealing for retirees seeking predictable expenses and stronger reliance on Social Security income.

Minnesota

Social Security covers: 43.0% of annual expenses

Minnesota retirees face higher annual expenses — $58,238 — but also receive some of the highest average Social Security payments — $25,065. The stronger benefit levels help offset higher costs. As a result, Social Security still covers a larger share of expenses here than in most states nationwide.

Indiana

Social Security covers: 43.5% of annual expenses

Indiana combines average yearly expenses of about $56,012 with Social Security payments of $24,388. Lower housing costs and a moderate overall cost of living help explain the strong coverage rate.

For many retirees, Social Security can reliably cover a significant portion of everyday expenses in Indiana.

Oklahoma

Social Security covers: 44.1% of annual expenses

Oklahoma stands out with average expenses of $52,179, among the lowest in the top 10, paired with Social Security payments of $23,020.

The state's affordability, particularly for housing and transportation, allows benefits to stretch further, making Social Security a more powerful income source for retirees.

Kansas

Social Security covers: 44.8% of annual expenses

Kansas ranks highest overall, with average annual expenses of $54,961 and Social Security payments around $24,603. Lower living costs relative to benefit levels drive this top ranking.

While Social Security still doesn't cover everything, it goes farther in Kansas than anywhere else in the country.

Bottom line

When planning for retirement, consider the full picture. Where you live can make a meaningful difference in how far Social Security stretches. In the top states on this list, benefits cover roughly 42% to nearly 45% of annual expenses for adults 65 and older well above the national average, largely because everyday costs are lower relative to benefit levels.

Still, even in the most affordable states, Social Security alone does not cover all retirement expenses. For retirees and pre-retirees, this underscores the importance of pairing benefits with other income sources, while also considering cost of living (not just taxes or weather) when deciding where to retire.

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