Social Security Payouts Vary Widely by State; Connecticut, New Jersey Lead as Louisiana, Mississippi Trail

The financial security of millions of Americans in retirement, or with disabilities, hinges on Social Security payments, which vary significantly from state to state.

According to a recent analysis by GoBankingRates, living on Social Security alone can be financially challenging, but many retirees and people with disabilities do so every day by carefully budgeting, seeking out assistance programs, and sometimes moving to lower-cost areas to make ends meet.

A review of state-by-state Social Security Administration (SSA) data reveals notable differences in average monthly benefits. These differences reflect a combination of factors, including local wages, cost of living, and the age and work history of beneficiaries in each state. According to the SSA data, Connecticut and New Jersey provide the highest average Social Security payments, while Louisiana and Mississippi have the lowest.

Top 10 States For Social Security Payments

The states with the highest average Social Security payments are:

1. Connecticut: $1,706 average monthly benefit for 699,597 beneficiaries.
2. New Jersey: $1,708 average monthly benefit for 1,652,973 beneficiaries.
3. Delaware: $1,694 average monthly benefit for 229,047 beneficiaries.
4. Minnesota: $1,622 average monthly benefit for 1,082,519 beneficiaries.
5. Washington: $1,630 average monthly benefit for 1,413,306 beneficiaries.
6. New Hampshire: $1,659 average monthly benefit for 321,925 beneficiaries.
7. Maryland: $1,648 average monthly benefit for 1,038,041 beneficiaries.
8. Massachusetts: $1,592 average monthly benefit for 1,295,088 beneficiaries.
9. Michigan: $1,603 average monthly benefit for 2,253,295 beneficiaries.
10. Colorado: $1,587 average monthly benefit for 925,084 beneficiaries.

In the Northeast and upper Midwest, higher average benefits are common. According to the Center on Budget and Policy Priorities (CBPP) benefits are determined from the average of a person's 35 highest-earning years. Sates with a higher proportion of individuals with higher lifetime earnings will higher average payments.

Bottom 10 States For Social Security Payments

At the other end of the spectrum, the states with the lowest average Social Security payments are:

1. Louisiana: $1,392 average monthly benefit for 924,881 beneficiaries.
2. Mississippi: $1,395 average monthly benefit for 681,844 beneficiaries.
3. Arkansas: $1,418 average monthly benefit for 709,191 beneficiaries.
4. Kentucky: $1,424 average monthly benefit for 1,010,012 beneficiaries.
5. West Virginia: $1,455 average monthly benefit for 475,824 beneficiaries.
6. Maine: $1,451 average monthly benefit for 359,152 beneficiaries.
7. New Mexico: $1,440 average monthly benefit for 455,414 beneficiaries.
8. Alabama: $1,467 average monthly benefit for 1,163,871 beneficiaries.
9. Montana: $1,481 average monthly benefit for 248,513 beneficiaries.
10. Oklahoma: $1,480 average monthly benefit for 813,941 beneficiaries.

These states, many of which are in the South and rural areas, often have lower average wages and higher rates of poverty, which result in lower Social Security payments for beneficiaries.

The Role and Importance of Social Security

Social Security is not just a retirement program, it also provides essential life insurance and disability insurance protection for millions of Americans. In February 2024, about 67 million people—about one in every five U.S. residents—collected Social Security benefits. While older adults make up about 80 percent beneficiaries, the remaining 20 percent received Social Security Disability Insurance or were young survivors of deceased workers.