Retirement Living: Your Social Security Will Go Further If You Live In This US State

According to the Social Security Administration (SSA), the average monthly benefit for retirees in August 2025 was just over $2,008. While there are a number of U.S. cities where retirees can live on Social Security alone, according to a new study by Realtor.com, the number of states where that's possible is dwindling. There are currently only 10 states where a retiree could live comfortably on their Social Security, and on that list, there's one state in particular where you can practice your most successful retirement lifestyle and the median benefit is $2,139. Delaware boasts an affordable cost of living below the national average, which includes reasonable rent, competitive house prices, a manageable grocery bill, and even cheaper utilities like electricity and gas. For retirees, Delaware's taxation is also favorable.

According to a 2024 report by the U.S. Bureau of Labor, the average annual cost of expense coverage in 2023 was $77,280. That's $6,440 per month, and includes all of the previously mentioned factors, plus insurance and pensions, healthcare, and entertainment. Additionally, a Bankrate survey showed 58% of Americans don't believe they're on track to have saved enough for their retirement, and that number only goes up in older age groups: 64% of workers 55 or older feel like they're behind on their retirement savings. But if some of those people considered a move to Delaware, those worries could go away.

Delaware is a state that demonstrates the ways in which renters are winning. Especially if you consider the average rent in the U.S., courtesy of Apartments.com, is $1,640 per month for a one-bedroom apartment and $1,900 per month for a two-bedroom. Meanwhile, Apartments.com also places the average rent for a one-bedroom in Delaware at $1,513 per month, or $1,718 per month for a two-bedroom rental. Depending on where you live in Delaware, you could secure even more affordable housing options. For instance, cities like Dover and Newark have comparable average rents of $1,433 and $1,481 per month, respectively, for one-bedroom apartments.

The median listed home price in Delaware, per Realtor.com, was $329,000, which also offers something of a bargain. The homes are so affordable that a September 2025 Realtor.com study notes many homes owned up to retirement age in Delaware are paid off and mortgage-free. While homes in other states can eat up an average of $900 per month in costs, Delaware's average spend for expenses related to housing max out at $555. If you fall into the category of retiree with no mortgage, with an average $2,139 benefit, you would be looking at monthly savings of $1,584. According to Delaware's Department of Finance, a Senior School Property Tax Relief program also offers homeowners at least 65 years old a tax credit of 50% of your regular school property taxes — up to $500 — if it's applied to your primary residence.

Not paying attention to the impact of taxes on their retirement lifestyle is one of several mistakes causing retirees to run out of money, and Delaware is a state that makes it easy since it doesn't tax Social Security benefits. Although pensions and other retirement income are partially taxable, if you're 60 years old or older and you receive less than $12,500 in income from these sources, you're entitled to exclude it from your taxable income. There's also no sales tax, and if you plan to pass on property to family members, they won't have to deal with the implications of estate sales tax, assuming the value of your estate is under $13.9 million.

EnergySage reports that electricity costs an average of $205 per month, or $2,460 annually, in Delaware. That's 17% lower than the national average of $2,949 per year. You'll also pay less for gas according to AAA, which places the cost of fuel in Delaware, as of September 2025, at less than $2.97. By comparison, the national average is $3.08. Additionally, according to Consumer Affairs' report on U.S. Census data, you'll spend an average of just over $246 per week on groceries, compared to the national average of just over $270. According to Realtor.com, all these factors lead to an average surplus of around $1,764 per year for retirees.