The economic situation in the country has changed in recent years, making states that were already more expensive to live in even more so. Therefore, choosing to retire in a more affordable state is a good option. Social Security forms the basis of retirement income for tens of millions of Americans. The combination of favorable tax policies, ample recreational opportunities, and a mild climate continues to be a popular choice for retirees who decide to move to these states. Delaware, for example, tops the list, where retirees without a mortgage have an annual surplus of $1,764.
Topping that list is Florida, the most popular destination for retirees, ahead of North Carolina
The data not only shows the states where it’s best to retire because the conditions ensure that Social Security benefits go further to cover all the expenses a retiree has to cover, but it also shows the states where people have recently moved to spend their retirement years. Topping that list is Florida, the most popular destination for retirees, ahead of North Carolina, which saw a net gain of just over 20,000 people in that same age range.
The analysis reveals that in 2023, 44,504 people aged 60 and over moved directly to Florida
However, at the other end of the spectrum, California experienced the largest loss of senior residents, with 56,858 people aged 60 and over leaving the state. California is one of the most expensive states to live in, primarily due to high housing prices. Therefore, in this respect, Florida has solidified its position as the top destination for retirees in the United States. The analysis reveals that in 2023, 44,504 people aged 60 and over moved directly to Florida, according to a SmartAsset study based on data from the Census Bureau’s American Community Survey.
The data indicates that housing is a key factor influencing Social Security’s ability to meet its needs
On the other hand, rising housing costs make it difficult for retirees to live comfortably on Social Security. Certainly, for another group of people, Florida isn’t the first choice for retirement. Recent data shows that benefits alone only cover costs in 10 states. As mentioned above, the data indicates that housing is a key factor influencing Social Security’s ability to meet its needs. Specifically, in these 10 states with a surplus, housing costs average about $510 per month.
Delaware tops the list, where, specifically, the average monthly benefit is around $2,139, while monthly costs amount to $1,992
Therefore, as mentioned, Delaware tops the list, where, specifically, the average monthly benefit is around $2,139, while monthly costs amount to $1,992. Indiana follows with a $1,392 surplus, supported by a median benefit of $2,016 and relatively modest housing expenses of $504 a month. While the costs of food, healthcare, and transportation remain relatively stable from state to state, the cost of maintaining a roof over one’s head varies considerably.
This data highlights the importance of retiring in one state or another and the economic implications of that decision
Speaking of concrete data, in states with deficits, the average housing cost is nearly $933, and in many East Coast states, it exceeds $1,000. This explains why, for example, the other states that follow on the list are Arizona ($1,224) and Utah ($888), which show similar results, each with median benefits close to $2,000 and housing costs around $530. South Carolina rounds out the top five, with retirees ahead by $828 each year. This difference means that housing costs rise from 27% of a retiree’s budget in surplus states to 32% in deficit states. The remaining states where Social Security alone is sufficient are West Virginia ($660), Alabama ($576), Nevada ($432), Tennessee ($156), and Michigan ($132). This data highlights the importance of retiring in one state or another and the economic implications of that decision.