The Top 5 US States Where Retirees Could Live On Social Security Alone, According To A New Study

For millions of older Americans, Social Security isn't just a safety net; it's a necessity for meeting expenses in retirement. Nearly three-quarters of retirees rely on these monthly checks for more than half of their income, and for 39% of seniors, it's their only source of support, according to The Senior Citizens League. Yet as housing, healthcare, and insurance costs climb, making those dollars last is becoming harder. A recent analysis by Realtor.com shows that Social Security benefits alone now cover basic living expenses in just 10 states – and this is for people who have paid off their mortgage. There's no one-size-fits-all answer about the best place to retire, as financial positions are very individual, as are priorities like proximity to family and where in a state one lives. But for those leaning heavily on Social Security, the best options, in order, are Delaware, Indiana, Arizona, Utah, and South Carolina. These five states stand out for their affordability, manageable housing costs, and overall livability.

It might be surprising not to find Florida on this list. Warm weather, no state income tax, and affordable communities like The Villages have long made it a retirement magnet. However, Florida is undesirable when factors like healthcare quality, home insurance costs, and natural disaster risk are considered. For example, property insurance averages $6,225 a year in Miami, more than double the national average of $2,290. Here's why these five very different states are good choices for people relying on Social Security.

A small state with big savings, Delaware tops the list of states where Social Security stretches the furthest, assisted by no state sales tax and relatively low property taxes. The median monthly benefit there is about $2,139, while monthly costs average $1,992, leaving retirees with an annual surplus of $1,764. Delaware also tops the rankings for healthcare and is a popular destination to move to in retirement.

Despite its small size, Delaware offers a high quality of life and a variety of types of communities, from the seaside fun of Rehoboth Beach and beautiful islands to the capital of Dover and historic riverfront towns with European charm. Garden appreciators will love the proximity to Winterthur, one of America's most impressive gardens surrounding a grand estate with timeless treasures, as well as hidden gems like the Marian Coffin Gardens. 

Although it doesn't make it on this list of the best states to retire in the U.S., Indiana's low cost of living and central location render it an attractive option for those who want affordability without sacrificing access to amenities or healthcare. The median monthly Social Security benefit in Indiana is $2,016, and housing costs average just $504 a month, leading to an annual surplus of $1,392. Indiana is America's 15^th most populous state, with a mix of small towns, farmland, mid-sized cities, and the capital of Indianapolis. 

This means that retirees can choose between a quiet lifestyle or active community living without the hefty price tag of coastal alternatives. For example, the riverfront gem Madison was voted the "Best Small Town" in the Midwest, and friendly lakeside Cicero is only 45 minutes from Indianapolis. Crisscrossed by rivers and enjoying a bit of waterfront on Lake Michigan, Indiana is not without water sources, even though it is not near an ocean.

The more than 1.3 million people in Arizona over 65 — nearly 19% of residents — are attracted to the warm climate and manageable expenses. Median Social Security benefits are close to $2,000, and housing costs hover around $530 per month, leaving an annual surplus of $1,224. That combination of affordability and sunshine in the Grand Canyon state makes it a perennial favorite.

While some parts of Arizona have seen rising home prices, overall costs remain well below those in traditional retirement hubs like California or Florida. The state's diverse landscapes, from desert retreats to mountain towns, also mean retirees can find a lifestyle that suits their preferences. Sedona and Phoenix are well known for their resorts, spas, and golf courses that paint the desert green. There's also the UNESCO-recognized city of Tucson and Flagstaff, whose ski mountain will surprise those who only think of Arizona as a hot desert state. Other places to consider retiring include Rio Verde, with its big city amenities and small town feel, and Lake Havasu, an affordable city known as Arizona's Playground.

Utah might not be the first place people think of for retirement, but it's becoming a top choice for those relying on Social Security. Average monthly Social Security benefits just top $2,000, and housing costs average $530, producing an annual surplus of $888. Beyond the numbers, Utah offers excellent healthcare access, low crime rates, and a strong sense of community. Its national parks and abundant outdoor recreation options make it ideal for active retirees, while its growing cities provide cultural and social opportunities without big-city prices. 

Retirees might want to settle in Fillmore, an underrated town with canyons, hot springs, and lava tubes, and they will have the time to embark on a leisurely scenic road trip to Utah's Mighty Five national parks. But Utah isn't all deserts and canyons. It's a worldwide magnet for serious skiers who come to enjoy the powder at the state's 15 resorts, like Deer Valley and Ogden, with its three ski resorts. If a ski town isn't a good match, a small mountain town to consider for retirement is artsy Springville, in the foothills of the Wasatch Mountains. 

South Carolina rounds out the top five best states to retire when relying on Social Security. Here, older adults have an annual surplus of $828, factoring in average monthly costs of $1,860 and a median monthly benefit of $1,929. The state's mild climate, low property taxes, and relatively low cost of living have fueled its popularity among retirees seeking a balance of affordability and quality of life. South Carolina also boasts strong community networks and a slower pace, which are qualities many retirees prioritize alongside financial considerations.

The Palmetto State's resort communities of Hilton Head Island and Myrtle Beach have long been known as retirement destinations. But there are many more options. If the activities and social life of a city are appealing, an option for retirement is Charleston, an attractive city that blends European flair with southern charm. However, don't overlook smaller places like the underrated Lowcountry town of Bluffton. If you're considering leaving the United States altogether in retirement, see where expat Americans think are the best countries to relocate.