Are Social Security checks your sole source of retirement income?

Retirement often comes with a slower pace of life. No more playing office politics, stressing over work deadlines, or struggling to make ends meet in a city with a punitive cost of living and a soul-crushing commute. The end of your career also brings new questions about how and where to spend your golden years when you won’t be tied to a specific location.

Should you settle in the mountains or by the beach? Do you prefer cross-country skiing or golf? Perhaps most importantly, where do your family, friends, and healthcare providers live? The answers to these where-to-retire questions are deeply personal.

To help you find some objective answers, financial experts analyzed a bevy of statistics on public health, the cost of living, and other metrics.

The average Social Security check is $1,632.04 per month. That’s not enough to live comfortably in most states in America, but Social Security was never supposed to be a retiree’s only source of income. Yet, many seniors live on just Social Security checks — a monthly payment that can’t cover their living expenses in some states.

We identified 10 US states that you can scratch off the list if Social Security checks are your only source of income. Here are the places where Social Security alone won’t pay the bills, listed from best to worst.

10. Oregon

• Cost-of-living index: 130.1
• Average one-bedroom rent (January 2022): $1,114

Oregon is known for its landscape diversity and many outdoor recreational opportunities, including beautiful lakes, lush forests, and scenic bikeways. From the impressive Mount Hood to the deep Carter Lake, Beaver State is definitely a paradise for outdoor lovers.

But while Oregon may offer some great places to explore during your golden years, its overall living costs are high. According to the latest data, its population has increased by more than 10% in the previous ten years. Yet, the state has fewer than 1.81 million housing units, which pretty much explains the high cost of living there. If your retirement income only comes from Social Security checks, you may want to avoid moving there.

9. Florida

• Cost-of-living index: 100.3
• Average one-bedroom rent (January 2022): $1,434

Florida is known for Miami Beach, the Everglades, and the Magic Kingdom. Nicknamed the Sunshine State, it’s also famous for its beaches, sunshine, and theme parks. The great diversity of the people who have relocated here from all over the globe is what fuels Florida’s continuing changes.

The state has also been the top retirement destination in America, but life there doesn’t come cheap. Sure, there are less expensive areas to retire, but not in America’s most loved beach paradises. Sorry, beach lovers, but this state is a big no for those living on just a Social Security check.

Keep reading to find other coveted coasts where retiring is more expensive than Florida!

8. Connecticut

• Cost-of-living index: 121.6
• Average one-bedroom rent (January 2022): $1,242

As a northeastern state, Connecticut is famous for its rich history, picturesque towns, and many notable people. Also known as the New England state, Connecticut is home to plenty of cultural attractions, historical sites, and outdoor activities.

One of the original 13 colonies, the state holds a sacred place in the US story as the birthplace of many American works of art, inventions, and conventions.

These are all wonderful, but they come at a price — an expensive one. Someone living on just a Social Security check may struggle to stay afloat there. Everything costs more in Connecticut, which is one of America’s most expensive states. That includes healthcare, groceries, and transportation, but the real issues are housing and utilities.

7. Washington

• Cost-of-living index: 111.6
• Average one-bedroom rent (January 2022): $1,376

If Social Security checks are your sole source of retirement income, you may want to stay away from this state. As a geographically and ethnically diverse part of the Pacific Northwest, Washington is a jolt of energy. Washington is famous for being a place where you can disconnect from your urban roots and explore nature, from its white-capped peaks and lush wilds to its urban centers.

While megacities like Seattle are lively and beautiful, to truly see the state’s charm, you have to head to its forests and coasts. Teeming with natural wonders, the Evergreen State shows great diversity in its landscapes.

Now, you may wonder whether this place is suitable for someone who lives on just a Social Security check. Well, utilities are cheaper there compared to other US states — much cheaper, actually. However, retirees as well as everyone else who lives there spend more than the national average across every other cost-of-living category.

6. Maryland

• Cost-of-living index: 124.0
• Average one-bedroom rent (January 2022): $1,397

Hugging the Chesapeake Bay and bordered by Pennsylvania, West Virginia, Virginia, Delaware, and the District of Columbia, Maryland is a coastal state located in the Mid-Atlantic region of the US. Known for the blue crabs, baseball, and the city of Baltimore, the state is also famous for being the birthplace of the national anthem.

When it comes to living in Maryland, retirees are bound to spend quite a lot of money. While the state does not tax Social Security checks (which may be a benefit for those who rely solely on them), retirees who live there must pay taxes on distributions from their individual retirement accounts.

Also, only a few states have higher housing costs than Maryland. Healthcare may be cheaper than average, but nothing else is.

5. New Jersey

• Cost-of-living index: 115.2
• Average one-bedroom rent (January 2022): $1,490

Here’s another state that you may want to scratch off the list if you live on just Social Security checks. One of the original 13 states, New Jersey, was a major battleground during the American Revolution. The Garden State is a fascinating place that’s often overlooked, partly because of its more well-known neighbor, New York.

Almost everything is more expensive than average there, but the most dangerous hidden cost is definitely the state’s extremely high taxes — property taxes, in particular. According to the latest data, New Jersey’s residents pay nearly $1 million in taxes over the course of their lifetimes. In fact, that’s more than what residents of any other state would pay.

So New Jersey isn’t the type of place where you’d want to spend your golden years if Social Security checks are your only source of income.

4. Massachusetts

• Cost-of-living index: 135.0
• Average one-bedroom rent (January 2022): $1,385

Beautiful New England foliage, the Islands, the impossible-to-replicate Boston accent, and elite schools like Harvard are all things that come to mind when you think of Massachusetts. But retirees who live there on just a Social Security check may tell you how difficult it is to stay afloat.

Unfortunately, living there is not inexpensive. Residents of only four states are dealing with higher housing costs than those who call Massachusetts home. Basically, pretty much everything costs more than the national average in the New England state, with not just housing, but healthcare and groceries being especially pricey.

And though the average household income for retirees is high, taxes can significantly reduce those earnings.

Keep reading to discover the top 3 worst states to live on just a Social Security check!

3. New York

• Cost-of-living index: 148.2
• Average one-bedroom rent (January 2022): $1,588

New York — one of the most famous cities in the entire world. Also called the Empire State, this vibrant place is known for its flashy Broadway performances, exclusive shops, and amazing skyscrapers.

Despite all these awesome things, New York is highly overpriced, especially for those who rely solely on their Social Security checks. In fact, Manhattan ranks as the most expensive place to live in America, with costs exceeding 138.6% above the national average.

With the national baseline set at 100.0, the housing expenses in New York are a staggering 230.1 on the cost-of-living index. Utilities are a little below average, and healthcare is only a little above, but everything else is more expensive in New York.

Retirees here may have an average income that’s among the top five in the US, but according to the latest data, the age group of 65 and older suffers an 11.4% poverty rate. So forget about moving here if you live on just a Social Security check.

2. California

• Cost-of-living index: 142.2
• Average one-bedroom rent (January 2022): $1,652

California is a captivating place full of travel destinations due to its natural beauty, coastlines, theme parks, and vibrant towns not seen anywhere else on Earth. Truth be told, the Golden State is perhaps the most renowned state in America, and many people visit this place for its lifestyle, landscape, as well as other activities.

Financially speaking, the average household income for seniors is significantly above average, yet plenty of seniors are unable to handle the heavy burden: 1 in 10 residents age 65 and older are living in poverty. But not just that: excluding the Social Security benefits, retirement income is fully taxable.

With above-average costs in almost every cost-of-living category and a housing index above 200, California has earned its reputation as a high-cost retirement place. If you’re planning to retire on Social Security checks alone, the California dream will likely remain just that.

1. Hawaii

• Cost-of-living index: 193.3
• Average one-bedroom rent (January 2022): $1,706

Hawaii is, without a doubt, a tropical oasis that we all want to visit. A short, direct flight away from San Francisco, Hawaii has pristine beaches, crystal-clear waters, and towering volcanoes.

But besides idyllic islands sitting in the Pacific Ocean, what is the Aloha State famous for? Well, Hawaii is also known for its incredibly high costs, so retiring in this paradise isn’t cheap, especially if you live on just a Social Security check.

Right in the middle of the ocean between Far East Asia and America’s West Coast, the state imports everything it cannot produce on its own. According to the latest data, the typical home in Hawaii now costs more than $800,000.

You may also want to read 10 Unbelievable Things Your Taxes Are Paying For.