The 10 States Where Social Security Lasts the Longest
- Author: Jenny Wolff
- Posted: 2026-01-13
Social Security was created to replace about 40% of a person’s income in retirement. A recent study shows that this goal is still almost being met, but where you live makes a big difference.
A study by FinanceBuzz looked at average Social Security payments compared to the typical costs retired people face in each state. On average, Social Security covers about 38% of seniors’ expenses across the U.S.—close to its original goal.
Kansas came out on top, with the average Social Security benefit covering nearly 45% of retirement costs. The next best states were Oklahoma, Indiana, Minnesota, and Iowa, where housing and healthcare costs are generally lower.
Here are the top 10 states where Social Security benefits stretch the furthest:
- Kansas
- Oklahoma
- Indiana
- Minnesota
- Iowa
- Alabama
- Arkansas
- Kentucky
- Mississippi
- West Virginia
In total, 24 states—many in the Midwest and South—have Social Security benefits that meet or beat the 40% target, mainly because daily living costs in these regions are lower.
Nearly 40% of Americans move after they retire, often to downsize, save money, and stretch their fixed income. Some people choose to work and save money while living in expensive areas, then move somewhere cheaper once they retire to make their money go further.
As FinanceBuzz researcher Josh Koebert put it, “Live and work where you earn more, and retire somewhere with lower living costs.”
High Costs Make Benefits Worth Less
But many retirees don’t just move to the cheapest state. For example, Massachusetts—despite its high taxes and cost of living—was number one on AARP’s 2024 list of retirement destinations. Florida, Illinois, and Kentucky were also popular.
This shows that people often care more about things like lifestyle, family, and access to health care than just saving money.
The study found that Social Security money goes the least far in Hawaii, Massachusetts, and California because of high housing, food, and transportation costs.
In Hawaii—the worst state on the list—Social Security only covers about 21% of yearly retirement expenses. In Massachusetts, California, and Washington, D.C., Social Security covers less than 30% of expenses.
The researchers used government data to compare costs and benefits in every state.
States where Social Security lasts longer usually have mid-sized cities or large rural areas, which keeps prices down. High-cost states are often places with big cities and high demand for housing and services.
Matthew Spiegel, a finance professor at Yale, says money isn’t the only thing to think about. For example, housing in rural Florida costs much less than in Manhattan, New York.
But if you love going to Broadway shows or Knicks games, flying to New York all the time would cost a lot of time and money. So, that cheap house might not really be cheaper.
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