A new analysis conducted by Realtor, com found that Social Security benefits alone are now sufficient to cover the cost of living in just 10 states. Retirees with a canceled mortgage may have a better chance of living comfortably with Social Security alone. Without mortgage debt, retirees can manage their budget for basic living expenses more easily. In fact, the western Pacific states of California, Oregon, Alaska, and Hawaii are among the five most expensive states to live in for both retirees and workers.
However, retirees who do make money outside of Social Security can take comfort in knowing that they will qualify for new deductions for seniors under the One Big Beautiful Act, promoted by President Donald Trump. Without substantial savings, retiring with a mortgage will be very difficult if Social Security checks are your only income. A report from the League of Senior Citizens (TSCL) shows that nearly three-quarters of older Americans rely on Social Security for more than half of their income. AARP is a nonprofit, nonpartisan organization that allows people to choose how to live to measure who age.
These numbers come at a time when Social Security is still very important in helping older people pay for life after work, and they compare them to the average Social Security retirement benefit to show the extent to which benefits cover costs. Each year, the Social Security Administration evaluates a cost-of-living adjustment to adjust Social Security benefits for inflation. The 2026 COLA will be announced in October. With the cost of living rising ever higher, it's not easy for the 21.8 million retirees who, according to a report from The Senior Citizens League, rely solely on Social Security benefits for income. A recent study by The Senior Citizens League estimated that nearly 22 million older people rely solely on Social Security for their income.
Elsewhere, retirees face annual deficits that can add up to thousands of dollars, depending on where they live. The study compared the median Social Security benefits by state with the Standard Index of Economic Insurance for the Elderly, which records the basic living costs of older adults. In addition, three-quarters of seniors rely on Social Security for at least half of their income.
