For retirees living on Social Security alone, states with low costs of living, particularly affordable housing, and good tax benefits are key; top contenders often include Delaware, Indiana, Arizona, South Carolina, and West Virginia, where average benefits cover or come close to covering expenses, while tax-friendly states like Mississippi, Wyoming, Texas, and Florida also rank highly for not taxing benefits.
There are just 10 states where the typical retiree can live mortgage-free on Social Security alone. Delaware tops the list with an annual surplus of $1,764, or about $147 a month. At the other end of the surplus spectrum, Michigan squeaks by with just $132 a year, or roughly $11 a month.
Key Takeaways. Arkansas Is the Best State for Solo Senior Living: Closely followed by Missouri and Kansas, these states offer an affordable cost of living, a high proportion of nursing facilities, and low tax rates.
States with no income tax — like Florida, Texas, and Wyoming — are often considered tax-friendly for retirees. These states typically don't tax Social Security benefits, pensions, or retirement account withdrawals, though property and sales taxes may still apply.
If it seems daunting, here are some ideas for how to retire on Social Security alone:
Least Expensive States for a Single Adult With No Kids to Live Comfortably
Thailand. Is it possible to retire in Thailand and keep the costs in check? Certainly! It's another top choice for digital nomads with an achievable $500 monthly budget, focusing on affordable accommodation.
Hot Springs Village, Arkansas, is the best place to retire with little to no savings. More than 60 percent of the town's population is aged 65 and above, and annual expenses are estimated to be $21,114. Foley, Alabama, and The Villages, Florida, are the second and third best places to retire without savings.
If Social Security isn't enough, you should supplement your income through other savings (401k, IRAs, brokerage accounts), explore government aid like SSI, SNAP, and Medicaid, consider working part-time, use programs like NCOA's BenefitsCheckUp to find assistance, potentially delay claiming benefits for a higher monthly payout, or look into annuities for guaranteed income.
TSCL surveyed thousands of American seniors over the age of 62 who were eligible for their Social Security benefits for the Senior Survey 2025 and found that nearly three-quarters of seniors (73%) depend on Social Security for more than half their income, and about 39% depend on the program for the entirety of their ...
Here are some of our favorite ideas for what to do in retirement:
Average individual retirement income: $60,000/year or $5,000/month. Median individual retirement income: $47,000/year or $3,900/month. Average retirement income for couples: $100,000/year or $8,300/month.
With $5k, the best approach depends on your goals: build an emergency fund in a high-yield savings account, eliminate high-interest debt (like credit cards), invest in diversified options (ETFs, index funds, retirement accounts), or invest in yourself through education/skills for future income, with prioritizing safety (emergency fund, debt) generally recommended before high-risk growth.
Most Affordable States for Retirement