If You're Living On Social Security Alone, You Might Want To Avoid These States

Social Security is a primary income source for millions of retirees — and for some it's the only income they have. If you fall into this category, choosing the right place to live can make a huge impact on whether you're able to make ends meet each month. The cost of living in the U.S. varies widely from state to state and in certain areas, it outpaces the average Social Security checks retirees receive. If you're relying on Social Security as a primary source of income, there are some states you'll want to avoid including Vermont, New Jersey, and Massachusetts, where covering monthly expenses could be a challenge. 

More than 21 million, or 39%, of seniors depend on Social Security for their entire income, according to The Senior Citizens League. On average, the amount these retirees receive in their monthly checks is $2,006. In many cases, however, the amount is even lower. After taxes and deductions, the average senior is taking home between $1,000 and $2,000 per month while another 13% are receiving less than $1,000 per month.  

Social Security checks do increase yearly based on the Social Security cost-of-living adjustment (COLA). Beginning in 2025, Social Security benefits increased by 2.5%, and they're expected to tick higher in 2026, with estimates calling for an average increase of about $54 per month. However, despite the increases, in states where the monthly cost of living is already higher than the national average — in some cases well above $2,000 per month — Social Security isn't nearly enough for seniors who have no other income sources to rely on. 

If you're relying on Social Security as your sole income stream, and looking to avoid states that have the highest cost of living, Vermont is probably not a state you'll want to spend your retirement. The average monthly cost to live in Vermont is $2,628, according to Realtor.com. Much of the high cost of living is due to housing related expenses such as utilities, taxes and insurance — all of which have risen dramatically over the past five years.  Plus, many retirees are opting to rent instead of own a home. These costs outpace the average monthly Social Security payment for retirees in the state of $1,954. This means that each month you'll be short $674, which amounts to $8,088 a year. 

The cost of living in New Jersey isn't much better. In this state, total monthly costs are even higher than in Vermont, coming in at $2,798. However, a slightly higher average monthly Social Security benefit of $2,172 narrows the gap to $626 per month, or $7,512 annually. Retirees will fare similarly in Massachusetts, where the monthly costs of $2,634 outweighs the average monthly benefit of $2,022. In this state you'll be in the red $612 every month or $7,345 for the year. Two other northeastern states round out the top five spots on the list — New York and New Hampshire. These states register annual shortfalls of $7,248 and $6,564, respectively, making them tough picks for retirees living off Social Security.