Doug
Whiteman MoneyWise • October
22, 2019
The States With the Best and Worst Average Social Security
Checks
Retired
Americans on Social Security will be sipping on a rather bitter
COLA — as in cost-of-living adjustment. Seniors will receive a raise in 2020 of
just 1.6%, down from the 2.8% increase they got for 2019.
The
Social Security Administration has announced that the average monthly benefit
will rise from $1,479 in 2019 to $1,503 next year. Or, from $17,748 annually to
$18,036.
But the
amounts vary by state.
Here's
how all 50 states and the District of Columbia rank for Social Security
benefits, going from the smallest average payments to the largest. The list is
based on recently released numbers of retired workers on Social Security in
each state and the total benefits they received in 2018.
51. Louisiana
Average
annual benefit: $16,350
According
to the Social Security Administration's most current information, 540,818
Louisiana retirees collected benefits in 2018 averaging $1,362.52 per month.
That
works out to $16,350.25 a year. It's not too far above what the federal
government considers a poverty income for a single person: $12,490 per year.
50. Mississippi
Average
annual benefit: $16,431
In
Mississippi, 416,530 retirees received benefits in 2018 that averaged $1,369.26
per month. Multiply by 12, and you get an average annual income of $16,431.15.
About 1
in 5 elderly married couples on Social Security and nearly half of unmarried seniors
rely on their benefits for at least 90% of their income, the Social Security
Administration says.
49. Maine
Average
annual benefit: $16,453
Social
Security says 234,929 retired workers in Maine were collecting benefits in 2018
that averaged $1,371.12 a month — or $16,453.40 per year.
Around
90% of Americans 65 or older receive Social Security benefits. Some choose to
wait until they turn 70, the age at which you receive your maximum possible
benefit.
48. New Mexico
Average
annual benefit: $16,538
In New
Mexico, 297,313 retirees collected benefits in 2018 that averaged $1,378.17 per
month, or $16,538.05 a year.
New
Mexico is one of 13 states that tax Social Security benefits, according to
AARP.
47. Montana
Average
annual benefit: $16,640
Officials
say 171,787 Montana retirees were receiving Social Security payments in 2018
that averaged $1,386.69 per month or $16,640.33 a year.
Montana
also is among the 13 states that tax Social Security benefits, says AARP.
46. Arkansas
Average
annual benefit: $16,642
In
Arkansas, 439,558 retirees were collecting benefits in 2018 that averaged
$1,386.84 a month or $16,642.09 per year.
The
benefits program got its start in 1935, when President Franklin Roosevelt
signed the Social Security Act into law.
45. Kentucky
Average
annual benefit: $16,720
In
Kentucky, 599,606 retirees were taking benefits in 2018 that averaged $1,393.31
per month — or $16,719.70 per year.
On
January 31, 1940, the first monthly Social Security check was issued to Ida May
Fuller, a retired legal secretary in Ludlow, Vermont. She received $22.54,
which is equivalent to $413.77 in today's dollars.
44. South Dakota
Average
annual benefit: $16,754
The
Social Security Administration says 133,040 retired workers in South Dakota
were collecting benefits in 2018 that averaged $1,396.20 per month, or
$16,754.36 a year.
During
her lifetime, Ida May Fuller — the first Social Security recipient — collected benefits
totaling about $22,889.
43. Alaska
Average
annual benefit: $16,808
Officials
say 72,029 Alaska retirees were collecting benefits in 2018 that averaged
$1,400.70 per month, or $16,808.40 a year.
Like
every other resident of Alaska, a retiree also receives an annual payment from
the state's oil wealth fund. The amount in 2019 is $1,606.
42. North Dakota
Average
annual benefit: $16,849
In
North Dakota, 96,657 retirees were collecting benefits in 2018 that averaged
$1,404.05 per month, or $16,848.57 a year.
North
Dakota is another of the 13 states that collect taxes on Social Security
benefits, AARP says.
41. District of Columbia
Average
annual benefit: $16,959
In the
District of Columbia, 57,338 retirees were collecting benefits in 2018 that
averaged $1,413.25 per month or $16,959.01 a year.
A
person can claim Social Security as early as age 62, but if you don't wait your
monthly payment will be permanently reduced by up to 30%.
40. Oklahoma
Average
annual benefit: $17,098
In
Oklahoma, 522,769 retirees were collecting benefits in 2018 that averaged
$1,424.85 per month.
The
math on that works out to an average $17,098.17 a year. Paltry Social Security
benefits are a reason working Americans need to save more — such as
through 401(k) plans offered by employers.
39. Nevada
Average
annual benefit: $17,153
In
Nevada, 396,557 retirees were collecting benefits in 2018 that averaged
$1,429.46 per month or $17,153.48 a year.
Social
Security typically represents about a third of an older American's income,
officials with the program say.
38. Idaho
Average
annual benefit: $17,158
In
Idaho 247,610 retirees were collecting benefits in 2018 that averaged $1,429.82
per month.
Multiply
by 12 and you get an average annual income of $17,157.85. Some seniors are
lucky enough to have employer-based pensions that
provide additional retirement income, though those have become rare.
37. Texas
Average
annual benefit: $17,178
In
Texas, 2,832,567 retirees were collecting benefits in 2018 that averaged
$1,431.47 per month,
That
makes for an income of $17,177.59 a year. Money from an IRA, or individual retirement
account, can help you make ends meet in retirement — but you need to
start saving as early as you can.
36. California
Average
annual benefit: $17,190
In
America's most populous state, 4,310,091 retirees were collecting benefits in
2018 that averaged $1,432.46 per month or $17,189.56 a year.
The
number of older people on Social Security in California is greater than the
entire populations of almost half the states.
35. Alabama
Average
annual benefit: $17,222
In
Alabama, 709,443 retirees were collecting benefits in 2018 that averaged
$1,435.18 per month or $17,222.17 a year.
Half of
elderly retired couples and 70% of single retirees derive 50% or more of their
income from Social Security, officials with the program say.
34. Georgia
Average
annual benefit: $17,241
In
Georgia, 1,242,203 retirees were collecting benefits in 2018 that averaged
$1,436.74 per month.
The
math on that works out to an average annual income of $17,240.90.
33. West Virginia
Average
annual benefit: $17,243
In West
Virginia, 285,909 retirees were collecting benefits in 2018 that averaged
$1,436.95 per month, or $17,243.44 a year.
West
Virginia is among the 13 states that collect taxes on Social Security benefits,
AARP says.
32. Ohio
Average
annual benefit: $17,266
In
Ohio, 1,581,420 retirees were collecting benefits in 2018 that averaged
$1,438.86 per month — or $17,266.31 a year.
During
June 2019, some 44.5 retired workers across the U.S. were receiving Social
Security payments, officials say.
31. Missouri
Average
annual benefit: $17,267
In
Missouri, 873,524 retirees were collecting benefits in 2018 that averaged
$1,438.96 per month, or $17,267.46 a year.
Missouri
also is among the 13 states that tax the Social Security benefits of at least
some retirees, according to AARP.
30. Tennessee
Average
annual benefit: $17,401
In
Tennessee, 964,035 retirees were collecting benefits in 2018 that averaged
$1,450.11 per month.
Multiply
by 12 and you get an annual amount of $17,401.37. Investment income, maybe
through an automated investing service,
can help retirees stretch their money.
29. Hawaii
Average
annual benefit: $17,420
In
Hawaii — one of the best states for retirement —
211,813 retirees were collecting benefits in 2018 that averaged $1,451.67 per
month.
That
works out to an average $17,420.01 a year.
28. Florida
Average
annual benefit: $17,420
In
Florida — often considered America's retirement capital — 3,389,540 retirees
were collecting benefits in 2018 that averaged $1,451.70 per month.
That's
equal to $17,420.43 a year.
27. North Carolina
Average
annual benefit: $17,550
In
North Carolina, 1,476,848 retirees were collecting benefits in 2018 that
averaged $1,462.49 per month, or $17,549.91 a year.
Americans
are living longer and must rely on Social Security for longer periods. In 1940,
a 65-year-old was expected to live almost 14 years, the Social Security
Administration says. Today, that life expectancy is more than 20 years.
26. Oregon
Average
annual benefit: $17,576
In
Oregon, 640,652 retirees were collecting benefits in 2018 that averaged
$1,464.65 per month.
That
works out to $17,575.78 per year.
25. Iowa
Average
annual benefit: $17,614
In
Iowa, 470,664 retirees were collecting Social Security benefits in 2018 that
averaged $1,467.82 per month.
Multiply
by 12 and you get an average annual benefit of $17,613.79.
24. Nebraska
Average
annual benefit: $17,620
In
Nebraska, 250,014 retirees were collecting benefits in 2018 that averaged
$1,468.36 per month or $17,620.34 a year.
Nebraska
is another of the 13 states that tax the Social Security benefits of at least
some retirees, AARP says.
23. Colorado
Average
annual benefit: $17,657
In
Colorado 639,282 retirees were collecting benefits in 2018 that averaged
$1,471.42 per month or $17,657.03 a year.
Colorado
is yet another of the 13 states that collect taxes on Social Security benefits,
AARP says.
22. South Carolina
Average
annual benefit: $17,712
In
South Carolina, 796,032 retirees were collecting benefits in 2018 that averaged
$1,475.98 per month.
That's
equivalent to $17,711.73 a year.
21. Vermont
Average
annual benefit: $17,779
In
Vermont, 106,070 retirees were collecting benefits in 2018 that averaged
$1,481.62 per month, or $17,779.39 a year.
Vermont
also is among the 13 states that collect taxes on Social Security benefits,
AARP says.
20. Wyoming
Average
annual benefit: $17,822
In this
sparsely populated state, 82,101 retirees were collecting benefits in 2018 that
averaged $1,485.18 per month.
That
works out to an average $17,822.19 a year for each Wyoming retiree on Social
Security.
19. Illinois
Average
annual benefit: $17,896
In
Illinois, 1,590,343 retirees were collecting benefits in 2018 that averaged
$1,491.30 per month.
That's
the same as $17,895.63 per year.
18. Arizona
Average
annual benefit: $17,897
In
Arizona — another state that draws large numbers of retirees — 992,575 retired
workers were collecting benefits in 2018 that averaged $1,491.45 per month.
Multiply
by 12 and you get an average annual income of $17,897.44.
17. Rhode Island
Average
annual benefit: $17,920
In
Rhode Island, 156,598 retirees were collecting benefits in 2018 that averaged
$1,493.31 per month, or $17,919.77 a year.
Rhode
Island is another of the 13 states that tax Social Security benefits, according
to AARP.
16. Utah
Average
annual benefit: $18,009
In Utah
284,754 retirees were collecting benefits in 2018 that averaged $1,500.79 per
month or $18,009.44 a year.
Utah is
yet another of the 13 states that levy state taxes on Social Security benefits,
AARP says.
15. Wisconsin
Average
annual benefit: $18,024
In
Wisconsin, 896,146 retirees were collecting benefits in 2018 that averaged
$1,502.04 per month.
That's
the same as an income of $18,024.45 a year.
14. Virginia
Average
annual benefit: $18,084
In
Virginia, 1,078,144 retired workers were collecting benefits in 2018 that
averaged $1,507.01 per month.
That
works out to $18,084.17 per year.
13. Massachusetts
Average
annual benefit: $18,104
In
Massachusetts, 878,840 retirees were collecting benefits in 2018 that averaged
$1,508.65 per month.
That's
equivalent to $18,103.76 a year.
12. Kansas
Average
annual benefit: $18,145
In
Kansas 391,286 retirees were collecting benefits in 2018 that averaged
$1,512.09 per month or $18,145.06 a year.
Kansas
also is among the 13 states that collect taxes on some Social Security
benefits, according to AARP.
11. New York
Average
annual benefit: $18,174
In New
York 2,548,783 retirees were collecting benefits in 2018 that averaged
$1,514.50 per month, or $18,174.04 a year.
The first official Social Security
number was 055-09-0001 — issued in 1936 to 23-year-old John
Sweeney Jr. of New Rochelle, New York.
10. Pennsylvania
Average
annual benefit: $18,185
In
Pennsylvania 1,966,422 retirees were collecting benefits in 2018 that averaged
$1,515.44 per month.
Multiply
by 12 and you get $18,185.31 a year.
9. Minnesota
Average
annual benefit: $18,257
In
Minnesota 761,515 retirees were collecting benefits in 2018 that averaged
$1,521.45 per month or $18,257.40 a year.
Minnesota
is another of the 13 states that collect state income tax on Social Security
benefits, according to AARP.
8. Indiana
Average
annual benefit: $18,266
In
Indiana, 921,226 retirees were collecting benefits in 2018 that averaged
$1,522.20 per month
That
works out to an average annual income of $18,266.36. Could you live on that?
It's vital to have savings to fall back on.
7. Washington
Average
annual benefit: $18,432
In
Washington, 970,010 retirees were collecting benefits in 2018 that averaged
$1,535.96 per month
That
calculates to an average annual income of $18,431.57.
6. Maryland
Average
annual benefit: $18,586
In
Maryland, 720,910 retirees were collecting benefits in 2018 that averaged
$1,548.85 per month.
Multiply
by 12 and you get an annual income averaging $18,586.14. Despite the relatively
high benefits here, there are plenty of other reasons you probably wouldn't want to retire in Maryland.
5. Michigan
Average
annual benefit: $18,614
In
Michigan, 1,498,279 retired workers were collecting benefits in 2018 that
averaged $1,551.19 per month.
The
math works out to an average annual income of $18,614.28.
4. New Hampshire
Average
annual benefit: $18,794
In New
Hampshire 213,708 retirees were collecting benefits in 2018 that averaged
$1,566.21 per month, or $18,794.49 per year.
The
lowest Social Security number ever issued was given to Grace Owen of Concord,
New Hampshire, in 1936. It was: 001-01-0001.
3. Delaware
Average
annual benefit: $19,009
In
Delaware, 156,16 retirees were collecting benefits in 2018 that averaged
$1,584.12 per month.
That
works out to Social Security payments averaging $19,009.38 a year.
2. Connecticut
Average
annual benefit: $19,343
In
Connecticut, 501,724 retirees were collecting benefits in 2018 that averaged
$1,611.88 per month, or $19,342.59 a year.
Connecticut
is the last of the 13 states that collect taxes on Social Security benefits, AARP says.
1. New Jersey
Average
annual benefit: $19,402
The
Garden State is where older people receive the largest average Social Security
payments, according to the latest data from the program.
In New
Jersey, 1,181,229 retirees were collecting benefits in 2018 that averaged
$1,616.80 per month, or $19,401.58 a year.
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