(NEXSTAR) – Many Americans dream of a day when they have paid off their mortgage, can retire comfortably, and have the financial freedom to do as they wish.
Unfortunately, this isn’t the typical reality for the majority of U.S. residents due to the rising cost of housing across the entire country.
According to a new report from Realtor.com, only ten states in the U.S. allow retirees to live comfortably on Social Security benefits alone, provided they’ve paid off their mortgage.
Realtor.com investigated this by examining median Social Security benefits by state and the Elder Economic Security Standard Index, which outlines basic living costs for older adults. They’ve found that over the last five years, homeownership expenses have surged by roughly 26%, largely due to unforeseen costs.
Once a mortgage is paid off, there are still ongoing “hidden” expenses like property taxes, utilities, and home insurance. Due to these increasing costs, retirees typically find themselves about $2,762 short yearly, or approximately $230 each month, if relying solely on Social Security benefits.
In the list of ten states where average retirees aren’t financially lacking, Delaware ranks highest, with residents enjoying a yearly surplus of $1,764 from their Social Security benefits. Typically, a Delaware retiree receives $2,139 in benefits while their average monthly living expenses are about $1,992, resulting in an extra $147 monthly or $1,764 annually, as per Realtor.com.
Not far behind is Indiana, with a surplus of $1,392, followed by Arizona, with $1,224.
Here’s the full list of the ten states where Social Security benefits alone can cover your living expenses.
| Rank | State | Annual Surplus | Median Monthly Benefits | Total Monthly Costs |
|---|---|---|---|---|
| 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 other end of the list, several states fall extremely short of being able to have benefits alone cover their living expenses.
At the opposite end, Vermont retirees experience an annual deficit of $8,088, or $674 each month. Following Vermont, New Jersey, Massachusetts, and New York each have an annual shortfall ranging from approximately $7,300 to $7,500.
To see the full list and how retirees in your state are faring, check out the report on Realtor.com.
