Social Security was never meant to replace a worker’s full paycheck in retirement. Instead, the program is designed to cover about 40% of pre-retirement income. Nationally, benefits come close to that goal — but where you live can dramatically change how far those checks actually stretch.
A new study from FinanceBuzz shows that geography plays a major role in retirement security. In states with lower housing, healthcare, and overall living costs, Social Security benefits cover a significantly larger share of retirees’ expenses. In contrast, high-cost coastal states often leave retirees relying heavily on savings.
Why Location Matters More Than Ever
Although Social Security benefits are based on lifetime earnings, living costs vary wildly by state. A retiree receiving the same monthly check can live comfortably in one state while struggling in another.
FinanceBuzz compared:
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Average annual Social Security income
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Typical retirement spending by state
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Cost-of-living factors such as housing and healthcare
The result: 24 states offer retirees a better financial environment, where Social Security replaces far more than the national average.
10 States Where Social Security Lasts the Longest in 2026
These states give retirees the most “bang for their buck,” with benefits covering over 42% of annual expenses.
| Rank | State | Annual Spending | Avg. SS Benefit | % Covered by SS |
|---|---|---|---|---|
| 1 | Kansas | $54,961 | $24,603 | 44.8% |
| 2 | Oklahoma | $52,179 | $23,020 | 44.1% |
| 3 | Indiana | $56,012 | $24,388 | 43.5% |
| 4 | Minnesota | $58,238 | $25,065 | 43.0% |
| 5 | Iowa | $55,827 | $23,867 | 42.8% |
| 6 | Nebraska | $56,630 | $24,053 | 42.5% |
| 7 | Alabama | $54,343 | $22,962 | 42.3% |
| 8 | Missouri | $55,023 | $23,235 | 42.2% |
| 9 | Michigan | $58,547 | $24,705 | 42.2% |
| 10 | Tennessee | $55,827 | $23,458 | 42.0% |
These states share a common trait: lower housing and healthcare costs, which allow fixed incomes to go further.
In Kansas and Oklahoma, for example, retirees can cover nearly 45% of their total living expenses with Social Security alone — well above the program’s national target.
Where Social Security Covers the Least
At the other end of the spectrum are high-cost states where Social Security replaces a much smaller share of retirement spending.
Massachusetts stands out. Despite expensive housing and healthcare, it ranked first on AARP’s 2024 list of best retirement destinations. This shows that affordability is not the only factor driving retirement decisions.
Other high-cost states where Social Security stretches less include:
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Florida
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Illinois
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Kentucky
These states remain popular because of:
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Climate
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Family proximity
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Strong healthcare systems
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Lifestyle and recreation
For many retirees, quality of life outweighs financial efficiency.
The Big Retirement Trade-Off
The FinanceBuzz study highlights a growing reality:
Retirement security is no longer just about how much you saved — it’s also about where you live.
A $2,000 monthly Social Security check can feel comfortable in the Midwest, but tight on the coasts. As inflation continues to pressure housing and healthcare costs, state-by-state differences are becoming more important than ever.
For future retirees, relocation could be one of the most powerful financial decisions they make.
