Social Security plays a critical role in the financial stability of millions of Americans, especially retirees who depend on monthly benefits to cover basic living expenses.
However, the amount beneficiaries receive can vary widely depending on where they live. In some states, the average Social Security payment falls below $2,000 per month, which can make retirement more financially challenging.
Social Security Remains the Largest Federal Program
Social Security Administration provides benefits to millions of Americans each month and remains the largest social program in the country.
According to the U.S. Department of the Treasury, the federal government spent $1.58 trillion on Social Security in 2025, accounting for about 23% of the total federal budget.
The program now serves roughly 75 million Americans in 2026, which means nearly 22% of the U.S. population receives some type of Social Security benefit.
Many Seniors Rely Heavily on Social Security
Most Social Security recipients are retirees who depend on these payments as a primary source of income.
Data from the Social Security Administration shows:
- 39% to 44% of Americans age 65 and older rely on Social Security for at least half of their income.
- 12% to 15% of seniors rely on the program for 90% or more of their retirement income.
Although the benefits are adjusted for inflation through cost-of-living adjustments, many retirees say the increases are not enough to keep up with rising living expenses.
States With Average Social Security Benefits Below $2,000
Social Security benefits can vary significantly by state due to differences in wages, work histories, and retirement patterns.
Here are 10 states where the average monthly Social Security benefit is below $2,000 in 2026:
| State | Average Monthly Benefit |
|---|---|
| Alaska | $2,009 |
| Nevada | $2,008 |
| West Virginia | $1,999 |
| Maine | $1,990 |
| Montana | $1,988 |
| Kentucky | $1,965 |
| New Mexico | $1,965 |
| Arkansas | $1,951 |
| Louisiana | $1,916 |
| Mississippi | $1,911 |
Although Alaska and Nevada technically exceed $2,000, they remain close enough to the threshold that retirees may still struggle with rising expenses.
Cost of Living Plays a Major Role
Where retirees choose to live can have a major impact on how far Social Security benefits stretch.
For example:
- Alaska has one of the highest costs of living in the country.
- Mississippi and West Virginia have some of the lowest living costs nationwide.
- Louisiana and Arkansas offer lower housing costs but still present financial challenges due to healthcare expenses.
Even in states with lower costs, essential expenses such as housing and medical care often consume a large portion of retirement income.
Housing and Healthcare Are Major Expenses
For many retirees, two expenses take up the majority of their Social Security income:
- Housing costs, including rent or mortgage payments
- Healthcare spending, which tends to rise as people age
In several of the states listed above, the average cost of rent and healthcare alone can equal or exceed the typical Social Security payment.
Poverty Rates Among Seniors Vary by State
Despite differences in benefit amounts and living costs, senior poverty rates vary widely across the country.
Some states with lower benefits still maintain relatively low poverty rates among older residents, while others face more severe financial challenges.
For example:
- Mississippi has one of the highest senior poverty rates in the country.
- Alaska and Maine maintain lower-than-average poverty rates among seniors despite higher living costs.
FAQ
Why do Social Security benefits vary by state?
Social Security benefits are based on lifetime earnings and work history. Because wages differ across states, the average benefit amount also varies by location.
What is the average Social Security benefit in 2026?
The national average monthly benefit for retired workers is generally a little above $2,000, though the exact amount varies depending on individual earnings.
Which state has the lowest Social Security payments?
Mississippi currently has the lowest average monthly Social Security benefit, at about $1,911 per month.
Do cost-of-living adjustments increase Social Security payments?
Yes. Social Security benefits are adjusted annually through a cost-of-living adjustment (COLA) to help keep up with inflation.
Can retirees rely only on Social Security for income?
Financial experts generally recommend having additional retirement savings because Social Security benefits alone may not cover all living expenses.
