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For many people, Social Security is an important topic, especially as they approach retirement. Understanding how Social Security works and properly budgeting benefit payments are important steps towards enjoying a comfortable retirement.
To better understand seniors' financial situation and reliance on Social Security, our research team analyzed government data to determine the average income of people over 65, the average annual Social Security benefit received in each state, and more.
Key findings
- At least 85% of adults 65 and older receive Social Security in 43 states, highlighting its role as a critical safety net nationwide.
- Mississippi ranks as the state most reliant on Social Security income, with that income making up nearly 50% of total income for people ages 65 and older.
- 96.3% of retirees in South Dakota receive Social Security benefits, the highest rate in the country. The District of Columbia has the lowest rate at 74.8%.
The states most reliant on Social Security income, mapped
To determine how much people in each state rely on Social Security benefits, we first found the median annual income for people over 65 in each state, then used Social Security Administration data to calculate the average Social Security benefit for retirees.
Across the country, at least 25% of retirees' annual income comes from Social Security benefits, with that number rising to nearly 50% in some places.
The states that rely on Social Security the most
| State | Median Annual Income for 65+ | % of Median 65+ Income from Social Security |
| Mississippi | $44,031 | 49.5% |
| West Virginia | $45,778 | 49.0% |
| Kentucky | $46,685 | 47.6% |
| Indiana | $52,592 | 46.4% |
| Arkansas | $48,078 | 46.1% |
| Louisiana | $47,263 | 45.6% |
| Alabama | $50,483 | 45.5% |
| Michigan | $54,599 | 45.2% |
| Oklahoma | $51,209 | 45.0% |
| Wisconsin | $55,336 | 44.0% |
Mississippi is the state where Social Security benefits make up the largest share of income for the average person age 65 and older. In that state, nearly half (49.5%) of the average annual income for someone age 65+ comes from Social Security, a half percentage point higher than second-place West Virginia.
Kentucky, Indiana, Arkansas, Louisiana, Alabama, Michigan, and Oklahoma also had Social Security payments above 45%.
The states that rely on Social Security the least
| State | Median Income for 65+ | % of Median 65+ Income from Social Security |
| Hawaii | $91,390 | 25.9% |
| Alaska | $74,308 | 30.8% |
| California | $71,673 | 31.9% |
| Maryland | $75,539 | 33.8% |
| District of Columbia | $70,668 | 33.8% |
| Utah | $70,712 | 34.8% |
| New Jersey | $72,905 | 35.7% |
| Massachusetts | $69,095 | 35.8% |
| Nevada | $63,688 | 36.0% |
| Colorado | $67,322 | 36.1% |
The cost of living in Hawaii and Alaska is among the highest in the country, so anyone hoping to retire in those states will likely need more than just Social Security income to live comfortably. The average benefit payout in Hawaii accounts for only 25.9% of median income for people 65 and older on the islands, and in Alaska it covers just a little more than 30% of income.
The story is similar in other high-cost-of-living states where people tend to make more money during their working years. Social Security benefits account for just 31.9% of income for retirees in California and 33.8% in Maryland and the nearby District of Columbia, which means retirees in these states are less reliant on Social Security benefits than those living in other states.
Social Security utilization by state
The Social Security Administration regularly publishes data showing the percentage of the population receiving Social Security benefits in each state, allowing us to see the states where usage is highest and lowest. Over 40 states have 85% or more of the 65+ age group receiving Social Security benefits. This includes 25 states where 90% or more of that age group receive benefits.
States where people receive Social Security benefits at the highest rates
| State | % of People Aged 65+ Receiving Social Security |
| South Dakota | 96.3% |
| Mississippi | 95.9% |
| South Carolina | 94.8% |
| Wisconsin | 94.6% |
| Arkansas | 94.4% |
| Oklahoma | 93.9% |
| Tennessee | 93.6% |
| Idaho | 93.5% |
| Iowa | 93.4% |
| Indiana | 93.3% |
South Dakota has the highest percentage of citizens currently receiving Social Security benefits, with 96.3% of retirees receiving monthly payments. Mississippi, the state where the largest share of median retiree income comes from benefits payments, is second at 95.9%. No other state is above 95% utilization.
States where people receive Social Security benefits at the lowest rates
| State | % of People Aged 65+ Receiving Social Security |
| District of Columbia | 74.8% |
| Maryland | 81.6% |
| Massachusetts | 82.5% |
| New York | 82.7% |
| Florida | 83.7% |
| Hawaii | 83.8% |
| California | 84.3% |
| New Jersey | 84.6% |
| Illinois | 85.0% |
| Arizona | 85.1% |
Less than three-quarters of people aged 65 or older currently receive Social Security benefits in the District of Columbia, which is the lowest rate in the country. In fact, no other state is even below 80% utilization, as Maryland has the second-lowest usage rate at 81.6%. Massachusetts is the third-lowest, at 82.5%.
Full data
| State | Median Income for 65+ | % of 65+ Receiving Social Security | 65+ Per Person Annual Average Social Security Income | % of Median 65+ Income from Social Security |
| Alabama | $50,483 | 91.9% | $22,962 | 45.5% |
| Alaska | $74,308 | 86.8% | $22,858 | 30.8% |
| Arizona | $62,575 | 85.1% | $24,143 | 38.6% |
| Arkansas | $48,078 | 94.4% | $22,183 | 46.1% |
| California | $71,673 | 84.3% | $22,861 | 31.9% |
| Colorado | $67,322 | 85.6% | $24,298 | 36.1% |
| Connecticut | $69,395 | 86.1% | $26,192 | 37.7% |
| Delaware | $66,859 | 89.6% | $26,028 | 38.9% |
| District of Columbia | $70,668 | 74.8% | $23,865 | 33.8% |
| Florida | $60,005 | 83.7% | $23,420 | 39.0% |
| Georgia | $56,010 | 89.1% | $23,117 | 41.3% |
| Hawaii | $91,390 | 83.8% | $23,634 | 25.9% |
| Idaho | $59,657 | 93.5% | $23,347 | 39.1% |
| Illinois | $60,697 | 85.0% | $23,921 | 39.4% |
| Indiana | $52,592 | 93.3% | $24,388 | 46.4% |
| Iowa | $56,419 | 93.4% | $23,867 | 42.3% |
| Kansas | $57,155 | 91.9% | $24,603 | 43.0% |
| Kentucky | $46,685 | 91.5% | $22,227 | 47.6% |
| Louisiana | $47,263 | 87.8% | $21,572 | 45.6% |
| Maine | $55,568 | 90.5% | $22,554 | 40.6% |
| Maryland | $75,539 | 81.6% | $25,509 | 33.8% |
| Massachusetts | $69,095 | 82.5% | $24,742 | 35.8% |
| Michigan | $54,599 | 92.4% | $24,705 | 45.2% |
| Minnesota | $61,129 | 90.2% | $25,065 | 41.0% |
| Mississippi | $44,031 | 95.9% | $21,809 | 49.5% |
| Missouri | $53,027 | 91.2% | $23,235 | 43.8% |
| Montana | $58,390 | 91.4% | $22,624 | 38.7% |
| Nebraska | $56,008 | 89.1% | $24,053 | 42.9% |
| Nevada | $63,688 | 86.4% | $22,902 | 36.0% |
| New Hampshire | $67,530 | 91.4% | $26,121 | 38.7% |
| New Jersey | $72,905 | 84.6% | $26,023 | 35.7% |
| New Mexico | $54,478 | 87.6% | $22,219 | 40.8% |
| New York | $59,909 | 82.7% | $23,880 | 39.9% |
| North Carolina | $55,235 | 92.8% | $23,787 | 43.1% |
| North Dakota | $57,708 | 89.9% | $23,018 | 39.9% |
| Ohio | $53,095 | 87.5% | $22,920 | 43.2% |
| Oklahoma | $51,209 | 93.9% | $23,020 | 45.0% |
| Oregon | $60,405 | 92.5% | $23,800 | 39.4% |
| Pennsylvania | $55,938 | 90.2% | $24,458 | 43.7% |
| Rhode Island | $59,258 | 88.1% | $24,507 | 41.4% |
| South Carolina | $55,385 | 94.8% | $23,975 | 43.3% |
| South Dakota | $60,166 | 96.3% | $22,971 | 38.2% |
| Tennessee | $53,889 | 93.6% | $23,458 | 43.5% |
| Texas | $58,739 | 88.1% | $22,875 | 38.9% |
| Utah | $70,712 | 88.7% | $24,580 | 34.8% |
| Vermont | $60,814 | 90.6% | $24,346 | 40.0% |
| Virginia | $66,450 | 88.1% | $24,614 | 37.0% |
| Washington | $69,010 | 89.9% | $24,998 | 36.2% |
| West Virginia | $45,778 | 92.6% | $22,421 | 49.0% |
| Wisconsin | $55,336 | 94.6% | $24,354 | 44.0% |
| Wyoming | $60,674 | 91.8% | $24,276 | 40.0% |
| Entire U.S. | $59,648 | 87.9% | $23,478 | 39.4% |
Advice from the experts
Navigating life in retirement while receiving benefits doesn't have to be confusing. To help clarify what benefit recipients should know now to plan confidently no matter where they live, FinanceBuzz reached out to a panel of experts.
Responses may have been edited for clarity and brevity.
How realistic is it to retire with just Social Security income? Should people focus on fully funding their 401(k) instead?
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Bottom line
Social Security income is only part of the retirement equation. For a secure retirement, here are some more tips to follow:
- When you reach retirement age, take advantage of the right bank accounts. Even when you reach your retirement milestone, managing your money with the right tools is very important. Look into some of the best bank accounts for seniors to keep your hard-earned retirement funds secure and fee-free.
- Earn rewards even as a retiree. Responsible credit card usage can be a powerful financial tool for retirees and seniors alike. Applying for one of the best credit cards for seniors can supercharge spending power and add the perks of points and rewards to one's budget.
- Save for retirement as soon as possible. Saving for retirement is a huge part of making sure you're set up to live comfortably when no longer working full-time. When you start early, you have more time for investments to compound and for markets to stabilize. That said, every bit you can save is helpful, even if you're starting later.
- Budget your money. Check out our list of the best budgeting apps and start taking a more active role in your finances.
Methodology
Median annual income for people over the age of 65 in each state was found via the U.S. Census.
All other data was found via data published by the Social Security Administration. All data relates to Old-Age, Survivors, and Disability Insurance (OASDI) benefits, and we only collected data for recipients aged 65 and older. Data found this way includes the number of people receiving Social Security benefits in each state each month, the total number of payments made monthly, and the percentage of the 65+ population receiving monthly benefits. All Social Security Administration data covers the most recent full year for which data is available, 2024.
We used all that data to calculate the average Social Security benefit paid to the recipients in each state. We then found what proportion of the total median income that equates to that average benefit amount.
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