Retirees with a paid-off mortgage may have a better chance of living comfortably on Social Security alone. Without housing debt, retirees can manage their budget for basic living expenses more easily.<\/p>\n
A new report by Realtor.com<\/a> reveals that Social Security benefits alone are now enough to cover the cost of living in only 10 states. Retirees face shortfalls of thousands of dollars each year in all other states.<\/p>\n The analysis is based on median Social Security benefits in each state and the Elder Economic Security Standard Index, which measures the income older adults need to meet basic needs. Realtor.com<\/a> found that homeownership costs have increased by 26% over the past five years, with hidden costs such as property taxes, homeowners\u2019 insurance, and maintenance being the primary drivers. <\/p>\n Are Social Security benefits enough to live without a mortgage?<\/p>\n Most retirees cannot rely on Social Security alone, even with no mortgage payments. Benefits alone can only cover living expenses in 10 states, while the others face an average annual shortfall of approximately $2,762, or $230 per month, according to the report.<\/p>\n Living expenses often exceed what Social Security can realistically cover. A recent study from The Senior Citizens League estimated that nearly 22 million seniors rely solely on Social Security for their income. Additionally, three-quarters of all seniors depend on Social Security for at least half of their income.<\/p>\n Where Social Security could cover all your living expenses<\/p>\n Delaware leads the nation as mortgage free retirees have an annual surplus of $1,764, or about $147 per month. Michigan barely makes the surplus list with just $132 annually above living expenses. <\/p>\n Housing costs are the primary factor separating surplus from shortfall states. Retirees in surplus states spend about $510 on housing per month, with many falling below $550. In shortfall states, retirees spend more than $900 for housing.<\/p>\n Delaware<\/p>\n Annual surplus: +$1,764Total monthly costs: $1,992Monthly housing costs: $555Median monthly benefit: $2,139<\/p>\n Indiana<\/p>\n Annual surplus: +1,392Total monthly costs: $1,900Monthly housing costs: $555Median monthly benefit: $2,139<\/p>\n Arizona<\/p>\n Annual surplus: +$1,224Total monthly costs: $1,874Monthly housing costs: $531Median monthly benefit: $1,976<\/p>\n Utah<\/p>\n Annual surplus: +$888Total monthly costs: $1,933Monthly housing costs: $530Median monthly benefit: $2,007<\/p>\n South Carolina <\/p>\n Annual surplus: +$828Total monthly costs: $1,860Monthly housing costs: $486Median monthly benefit: $1,929<\/p>\n West Virginia<\/p>\n Annual surplus: +$660Total monthly costs: $1,806Monthly housing costs: $398Median monthly benefit: $1,861<\/p>\n Alabama<\/p>\n Annual surplus: +$576Total monthly costs: $1,805Monthly housing costs: $419Median monthly benefit: $1,853<\/p>\n Nevada<\/p>\n Annual surplus: +$432Total monthly costs: $1,805Monthly housing costs: $423Median monthly benefit: $1,841<\/p>\n Tennessee<\/p>\n Annual surplus: +$156Total monthly costs: $1,870Monthly housing costs: $474Median monthly benefit: $1,883<\/p>\n Michigan<\/p>\n Annual surplus: +$132Total monthly costs: $2,056Monthly housing costs: $531Median monthly benefit: $2,067<\/p>\n If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement<\/a> and agree that your clicks, interactions, and personal information may be collected, recorded, and\/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Retirees with a paid-off mortgage may have a better chance of living comfortably on Social Security alone. 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