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Many Americans dream of the day they finally pay off their mortgage and enter retirement, feeling assured with their financial situation, ready to pursue whatever they wish freely.
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 fresh report from Realtor.com, retirees in only ten states can comfortably rely solely on Social Security benefits if they’ve managed to clear their mortgage debts.
Realtor.com determined this by analyzing median Social Security benefits across states and referencing the Elder Economic Security Standard Index, which outlines the basic costs for older adults’ living. Over the last five years, it was found that the cost of homeownership has risen by roughly 26%, mainly due to concealed expenses.
Paying off your mortgage doesn’t eradiate all expenses. Monthly “hidden” costs still persist, such as property taxes, utilities, and home insurance. These rising expenses mean the average retiree comes up short by approximately $2,762 annually, or about $230 each month, when relying solely on Social Security benefits.
Among the ten states where retiree expenses don’t exceed benefits, Delaware leads, with retirees having an annual surplus of $1,764 from their Social Security benefits. Typically, Delaware retirees receive about $2,139 monthly, while living expenses average $1,992. This gives each retiree an additional $147 monthly, or $1,764 annually, according to 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.
Conversely, Vermont is at the other end, where retirees face an annual shortfall of $8,088, equivalent to $674 monthly. Following closely are New Jersey, Massachusetts, and New York, with retirees in these states experiencing annual deficits of around $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.
