Social Security is one of the most important sources of income for retirees across the U.S. However, the amount of Social Security benefits you receive can vary based on a number of factors, including your work history, earnings, and even where you live.
The average payment differs from state to state due to varying cost of living and average lifetime earnings across the nation.
In 2025, understanding the average Social Security payment in each state can help you plan for your retirement. This article will explore how payments differ and what retirees can expect in various states.
States with the Highest Average Social Security Payments
Some states offer higher-than-average Social Security payments. These states generally have higher wages and more opportunities for high-income earners, which in turn boosts the average benefit received by retirees.
For example, residents in high-income states tend to see larger monthly payments due to the SSA’s benefits formula, which is based on lifetime earnings.
Here are a few states with the highest average Social Security payments as of 2025:
- New Jersey – $1,790
- Connecticut – $1,775
- Delaware – $1,765
- Maryland – $1,750
- California – $1,730
These states are known for their higher living costs, which generally means higher salaries, more job opportunities in high-paying industries, and ultimately, larger Social Security payments for retirees.
States with the Lowest Average Social Security Payments
While some states provide higher payments, others have significantly lower Social Security benefits. These lower payments can be attributed to a lower cost of living, fewer high-income job opportunities, and different employment patterns. Generally, retirees in states with fewer high-wage earners will see lower benefits.
The states with the lowest average Social Security payments in 2025 include:
- Mississippi – $1,435
- Louisiana – $1,445
- New Mexico – $1,450
- Arkansas – $1,460
- West Virginia – $1,465
While these states may have lower Social Security payouts, it’s important to remember that their cost of living tends to be more affordable, meaning that the lower payments may still stretch further in these areas compared to more expensive states.
The National Average for Social Security Payments
The average Social Security retirement benefit in the U.S. in 2025 is about $1,710 per month. This amount reflects an average of what retirees across the country are expected to receive, based on their lifetime earnings.
Social Security payments are adjusted annually for inflation, which is known as a Cost of Living Adjustment (COLA). For 2025, the COLA increase was 3.2%, helping to keep Social Security payments in line with inflation and rising costs.
How Social Security Payments Are Calculated
Social Security payments are determined based on your average indexed monthly earnings (AIME) during your highest-earning 35 years of work. Your benefit amount is a percentage of your AIME, adjusted for inflation.
The Social Security Administration (SSA) uses a formula to calculate your primary insurance amount (PIA), which is the amount you will receive at your full retirement age (FRA).
It’s also important to note that benefits can vary depending on when you choose to start collecting Social Security. If you claim before your full retirement age, your benefits will be reduced, while waiting until after your FRA can result in a larger monthly payout.
Maximizing Your Social Security Benefits
While the average Social Security payment varies by state, there are a few key strategies you can use to maximize your benefits:
- Work for 35 years: Social Security benefits are calculated based on your highest-earning 35 years. If you don’t have 35 years of earnings, the SSA will use zeroes in the calculation, lowering your average.
- Delay claiming benefits: If you can afford to, delaying your benefits until age 70 will increase your monthly payout by about 8% per year.
- Coordinate with your spouse: Couples can sometimes maximize their Social Security benefits by coordinating their claiming strategies, taking advantage of spousal benefits and other options.
The more informed you are about your own Social Security situation, the better you can plan for retirement.
States with No Social Security Income Tax
Some retirees may want to consider relocating to states where Social Security income is not taxed. This can help preserve more of your Social Security benefits, especially if you live in a state with a high income tax.
Many states don’t tax Social Security benefits, which could be a deciding factor for retirees looking to stretch their dollars further.
States with no Social Security income tax include:
- Florida
- Tennessee
- Nevada
- South Dakota
- Wyoming
Choosing a state like these could allow you to maximize your Social Security income and reduce your tax burden during retirement.
Final Thoughts
Social Security benefits are a crucial part of retirement income for many Americans, and understanding how much you can expect based on your state can significantly impact your retirement planning.
Whether you live in a high-benefit state like New Jersey or a lower-benefit state like Mississippi, knowing the average Social Security payment in your area can help you prepare.
To make the most of your benefits, remember to work for at least 35 years, consider delaying your benefits, and think about where you want to live in retirement — particularly if tax advantages could help you keep more of your Social Security income.
For more information on Social Security payments and eligibility, visit the Social Security Administration’s official website.
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