A US State That Receives $4.01 Billion In Social Security Is Also One Of The Best For Retirement
Planning for retirement involves a lot of strategy, especially when it comes to the financial planning aspect of leaving the workforce. You might also need to ask yourself just how much money you will need for basic expenses, as well as where you might be able to live affordably on a fixed income. The answers can vary depending on your lifestyle during retirement, and how well you balance spending habits with your income from retirement plans, pensions, savings, and of course, Social Security.
Per GOBankingRates, Michigan received $4.01 billion in Social Security in 2024. The state had 2,269,413 recipients, making it one of the top 10 states to receive the most Social Security that year. Michigan sits squarely in the middle of the list at No. 5, with Georgia rounding out the tenth spot with $3.21 billion worth of Social Security and California crowned No. 1 with $10.4 billion received. While there are many options for retirees to pick when it comes to states with larger Social Security amounts, is Michigan the right state to choose for retirement as a home base?
The benefits of living in Michigan as a retiree
If you are considering a move to Michigan, there's good news: it is one of the best places to retire in the U.S. Plus, there are a many options for retirees to consider, such as Ann Arbor, a midwest college town perfect for retirees. Retirees might also consider staying away from hubs like Detroit, a city that is not well suited for retirees.
BestPlaces noted that, in Michigan, the average monthly cost of living for a single person comes to roughly $2,933 or about $35,200 annually, which is 38.5% less than the national average. Similarly, residents of Michigan tend to pay 8.5% less for necessary expenses such as food, healthcare, and transportation. Retire Fearless highlighted that retirees in Michigan can expect fairly good tax rates, excellent healthcare access and facilities, affordable housing, and a lower cost of living, which is ideal for retirees trying to stretch their budget.
Understanding how much Social Security you'll receive
The United States spends quite a bit on Social Security every year. According to Kiplinger, close to 55.5 million retirees received monthly benefits from the Social Security Administration (SSA), for a total of $108.3 billion, as of May 2025. The SSA's Monthly Statistical Snapshot found that in May 2025, the average monthly benefit amount for retirees was $2,002.39, up from April's average of $1,999.97 and marking the first time in history that monthly benefits exceeded $2,000.
Calculating your benefit amount involves a formula that computes your earnings over the course of the time you've worked, and combining that with the age at which you start drawing from your Social Security retirement benefits. If you need additional support to figure out the math, consider meeting with a financial or retirement planner to make sure you know exactly what your benefits are, and how to access them.