Why these states come out ahead

Social Security retirement benefits are calculated using the same four factors for everyone: how long you worked, how much you earned, your full retirement age, and the age at which you begin claiming.

Of those, earnings history is the biggest reason these states top the list. Benefits are based on your highest 35 years of inflation-adjusted earnings, so workers who earned higher wages throughout their careers generally receive bigger checks in retirement. Massachusetts, Washington, New Jersey, Maryland, Connecticut, and Virginia all rank among the top 10 states for average salary, while Minnesota and New Hampshire fall within the top 15. Higher paychecks during working years translate into higher benefits later.

It’s worth remembering, though, that many of these same states also have a high cost of living. A bigger raise in dollar terms doesn’t necessarily mean retirees there are better off once housing, healthcare, and taxes are factored in.