Ten states where Social Security money stretches the most

January 11, 2026, 5:09 a.m. ET

Social Security is generally expected to replace about 40% of your working income. A recent report by FinanceBuzz aimed to assess how effective Social Security is across different states. Interestingly, that 40% figure seems to hold up fairly well.

According to their findings, Kansas stands out with the most substantial Social Security benefits, where the average annual payments cover about 45% of seniors’ living costs. On the flip side, Hawaii has the least, with payments accounting for only 21% of retirement expenses.

Josh Kebert, a researcher with FinanceBuzz, noted that on a national level, roughly 38% of living costs are covered by these benefits. He mentioned that about half of the states meet that 40% benchmark they’re aiming for.

The analysis revealed that in 24 states, benefits from Social Security cover at least 40% of annual living expenses.

Nearly Two-Fifths of Americans Relocate After Retirement

Almost 40% of Americans decide to move to a new location upon retirement, as reported by the Transamerica Retirement Research Center. This often stems from the desire to downsize.

One straightforward way to cut costs during retirement is to choose a state with a lower cost of living.

Koebert advises, “Work in a place where you’re well-compensated, then transition to somewhere that makes retirement more affordable.” However, it’s a bit surprising that stats don’t show a noticeable trend of retirees flocking to cheaper states. For example, Massachusetts emerged as the top retirement choice for 2024, despite its previous reputation for high taxes.

Other popular relocation spots include Florida, Illinois, and Kentucky—places known for their relatively lower costs.

It’s noteworthy that states like Hawaii, Massachusetts, and California also have higher living expenses but less stringent Social Security evaluations.

This analysis gauged retirement costs based on data from the Department of Labor’s Consumer Expenditure Survey and Social Security information from the Social Security Administration.

Top States for Social Security Coverage

Here’s a list of the ten states boasting the most robust Social Security support:

1. Kansas: Annual retirement cost is $54,961; with Social Security payments at $24,603 covering 44.8%.
2. Oklahoma: Annual expenses are $52,179, with Social Security providing $23,020, or 44.1% coverage.
3. Indiana: Annual costs of $56,012; Social Security payments at $24,388, covering 43.5%.
4. Minnesota: Annual expenses of $58,238, with payments of $25,065, or 43% coverage.
5. Iowa: Costs at $55,827, payments of $23,867, covering 42.8%.
6. Nebraska: Annual expenses of $56,630; payments at $24,053, covering 42.5%.
7. Alabama: At $54,343 annual expenses, payments of $22,962 cover 42.3%.
8. Missouri: Annual expenses are $55,023; Social Security provides $23,235, which is 42.2% coverage.
9. Michigan: Costs of $58,547 with payments of $24,705 covering 42.2%.
10. Tennessee: Annual costs at $55,827; payments of $23,458 cover 42%.

States with the Least Social Security Coverage

Conversely, here are the ten states with the weakest Social Security benefits:

1. Hawaii: Annual retirement cost of $111,097; Social Security payments averaging $23,634 cover merely 21.3%.
2. Massachusetts: Costs of $93,230; payments at $24,742 cover 26.5%.
3. California: With expenses of $84,513, Social Security covers 27.1% at $22,861.
4. District of Columbia: Costs at $83,585; average payments of $23,865 provide 28.6% coverage.
5. Alaska: Costs of $78,949 with payments of $22,858 covering 29%.
6. New York: Costs of $78,269; Social Security payments of $23,880 cover 30.5%.
7. Maine: Annual costs of $70,602; payments at $22,554 cover 31.9%.
8. Montana: Annual expenses at $67,882 mean payments of $22,624 cover 33.3%.
9. Oregon: Costs of $69,119; payments at $23,800 cover 34.4%.
10. Vermont: Costs of $70,293; Social Security payments average $24,346, covering 34.6%.

Consider Where You Want to Spend Your Time

Typically, states with low Social Security coverage also have high living expenses. Some locations, like Alaska and Hawaii, are quite isolated. States offering better benefits generally feature a mix of urban hubs and spacious rural areas where living costs are lower.

Yet, apart from financial considerations, retirees should ponder where they truly wish to spend their golden years. Matthew Spiegel, a finance professor at Yale, emphasized this point. He explained that rural property in Florida might be more affordable than in Manhattan, but if someone wants regular access to events like Broadway shows or Knicks games, the travel from rural Florida to Manhattan could become quite costly in both time and money. It’s a more complex equation than it might seem at first glance.