Many Americans have a dream. The hope of one day paying off a mortgage and enjoying retirement, perhaps feeling secure enough to explore passions or simply relax.
But this isn’t the norm for a lot of folks, especially given the surge in housing costs across the nation.
Recent analysis from Realtor.com reveals that only in ten states, retirees can manage to live off social security benefits alone after paying off their mortgages.
Realtor.com’s study assessed the median social security benefits alongside the Aged Economic Security Standards Index, which gauges the cost of living for older individuals. They found that homeownership costs have risen roughly 26% in the last five years, largely due to unexpected expenses.
Even after a mortgage is settled, retirees face ongoing “hidden” costs like property taxes, utilities, and insurance. Because of these increasing costs, retirees relying solely on Social Security could be running about $2,762 short annually—roughly $230 monthly.
Among those ten states, Delaware ranks highest, providing residents with a surplus of $1,764 thanks to their social security benefits. On average, retirees in Delaware receive about $2,139 in benefits, while their living expenses hover around $1,992. This essentially results in an extra $147 each month, or $1,764 yearly.
Indiana follows closely, showing a surplus of $1,392, with Arizona at $1,224.
Here’s the complete rundown of those ten states where living costs can be covered solely by social security benefits.
| Rank | State | Annual Excess | Median Monthly Benefits | Total Monthly Expenses |
|---|---|---|---|---|
| 1. | Delaware | + $1,764 | $2,139 | $1,992 |
| 2. | Indiana | + $1,392 | $2,016 | $1,900 |
| 3. | Arizona | + $1,224 | $1,976 | $1,874 |
| 4. | Utah | + $888 | $2,007 | $1,933 |
| 5. | South Carolina | + $828 | $1,929 | $1,860 |
| 6. | West Virginia | + $660 | $1,861 | $1,806 |
| 7. | Alabama | + $576 | $1,853 | $1,805 |
| 8. | Nevada | + $432 | $1,841 | $1,805 |
| 9. | Tennessee | + $156 | $1,883 | $1,870 |
| 10. | Michigan | + $132 | $2,067 | $2,056 |
On the flip side, some states struggle significantly to meet even basic living expenses solely with social security.
Vermont finds itself at the bottom, offering an average retirement benefit of just $8,088 annually or $674 monthly. New Jersey, Massachusetts, and New York also fall short, each providing below $7,500 per year.
For a more detailed view and to see how retirees in your state stack up, check out the full report from Realtor.com.
