Map Shows States Where Social Security Retirees Face Biggest Shortfall
Summary
A new analysis shows that Social Security retirement benefits are not enough to cover the basic living costs in any U.S. state. Even with an expected increase in benefits for 2027, retirees relying mainly on Social Security will face significant financial gaps, especially in states with high living expenses.Key Facts
- Social Security benefits provide a steady income for many retirees and are adjusted yearly for inflation.
- The 2027 cost-of-living adjustment (COLA) is projected to be about 3.6%, possibly adding around $75 to the average monthly benefit.
- The average annual Social Security retirement benefit is projected to be $25,716 in 2027.
- The Massachusetts Institute of Technology (MIT) calculated how much income a single adult with no children needs to cover basic living costs in each state.
- All 50 states show a gap between the required income and the projected Social Security benefit, with average shortfalls around $15,052 yearly.
- California has the largest gap at about $25,700 per year, followed by Hawaii, Massachusetts, New York, and Washington, each with gaps over $20,000.
- Even states with lower living costs, like West Virginia, have shortfalls above $8,000 a year.
- Social Security benefits depend on a worker’s past earnings and the age they start claiming benefits.
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