10 States You Should Think Twice About Relocating To if You Rely on Social Security

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Social Security was never meant to be the sole source of funding for retirement, and the payouts are often too low for most Americans to rely on completely. As of Sept. 2024, for example, the average monthly retirement benefit was just $1,873.08, or $22,476.96 per year, according to the Social Security Administration. Meanwhile, Healthcare.gov categorized the federal poverty line for an individual as $15,060, meaning that Social Security is just barely enough to keep someone out of poverty.

But that’s just the national average. Many individual states, by definition, are more expensive than the average — in some cases, by a large margin. You might want to avoid the following states if you’re relying on Social Security, as your dollar won’t stretch very far, and it may literally be impossible to get by on just a benefit check.

Here’s a look at the 10 most expensive states in the U.S., all of which are at least 17% more expensive than the national average, according to World Population Review data.

10. Vermont

• Cost of living index: 117

Healthcare and miscellaneous costs are actually fairly modest in Vermont, but overall, residents pay 17% above the national average across the board, making it the 10th-most expensive state in the country. Housing affordability actually ranks the lowest in the nation, with only 15% of residents earning enough to afford buying a new home.

9. Rhode Island

• Cost of living index: 117.2

Utilities are the most expensive cost in Rhode Island on a relative basis, coming in at 27.6% above the national average. However, costs across all other categories are at least 5% higher than their corresponding national averages, topped by the housing cost index at 121.7.

8. Connecticut

• Cost of living index: 121.6

Although home prices in Connecticut are pricey, running 34.6% above the national average, costs across the board are high in this attractive New England state. Transportation, healthcare, utilities and miscellaneous costs are 11% to 32% above the national average, as well.

7. Maryland

• Cost of living index: 124

As is the case with many of the most expensive cities on this list, Maryland housing prices are unaffordable for many, running 66% above the national average. But healthcare is actually a whopping 17% cheaper than national norms, something that could help seniors find the state more affordable.

6. Alaska

• Cost of living index: 127.1

Alaska is the biggest state in the Union, and there’s an independent culture there that many Americans gravitate toward. But as it’s disconnected from the contiguous states and fairly remote, costs overall are quite high. Utilities and healthcare are each more than 50% above the national average.

5. Oregon

• Cost of living index: 130.1

Some costs in Oregon, such as utilities, are actually about 10% below the national average. But transportation is 76% more expensive there, and housing is the biggest culprit, coming in about 73% above the national average.

4. Massachusetts

• Cost of living index: 135

Generally speaking, the Northeastern states are more expensive than most others in America, and Massachusetts is the ringleader with overall costs 35% above the national average. Most expenses in the state run 15% to 20% above the national average, so they are perhaps manageable, but housing is more than 77% more expensive.

3. California

• Cost of living index: 142.2

If you’re looking for a varied lifestyle, California has it all. From the beaches to the mountains to the deserts — not to mention the entertainment capital of the world, Los Angeles — California is the country’s most populous state for a reason. On average, the state is 42% more expensive than the national average, with housing prices playing a big part of that. On the plus side, there are a number of less costly cities in the giant state. But if you want to live in Los Angeles or San Francisco, you’ll be paying a lot more than 42% above the national average.

2. New York

• Cost of living index: 148.2

As the home to the country’s single most expensive city, New York City, the state of New York ranks No. 2 overall in terms of cost of living. Residents should expect to pay roughly 50% more than the national average to live there, and much more than that in the Big Apple itself. Overall, New York has the lowest rate of home ownership in the entire country, and if you want to live in New York City, renters don’t get a break either — a two-bedroom apartment goes for about $5,874 per month.

1. Hawaii

• Cost of living index: 193.3

Hawaii is one of America’s treasures, a chain of spellbinding Pacific Islands that fulfill the dream of paradise for many. However, as one of the most remote locations on Earth, living in Hawaii comes with a cost — one that is prohibitive for many Americans, even those not living exclusively on Social Security. Overall, the cost of living is nearly double the national average, with housing costs closer to triple.

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