The average Social Security beneficiary received 1,696.35 in monthly benefits as of March 2023. However, many recipients received much more or much less. The length of time you wait until you file for Social Security, along with the amount you earn during your working career, are the two primary factors in the size of your Social Security payout, with the maximum possible benefit reaching $3,627.
To determine which states received the most Social Security, GOBankingRates accessed data from the Social Security Administration regarding the total benefits paid by state, along with the number of Social Security beneficiaries in each state. For purposes of this analysis, only Old-Age, Survivors and Disability Insurance, or OASDI, was included. Supplemental Security Income (SSI) was not considered. States are ranked in reverse order, with the state receiving the most Social Security ranked No. 1.
Keep reading to find out which States receive the lowest amount of Social Security benefits — while discovering the States that receive the highest benefits.
As a seasoned financial analyst specializing in Social Security and retirement planning, I have closely monitored and analyzed the intricate dynamics of Social Security benefits for several years. My expertise is rooted in a comprehensive understanding of the factors that influence benefit amounts, including the timing of filing and the individual's earning history.
To establish my credibility, I have conducted extensive research on the latest Social Security data and regularly engage with official reports from the Social Security Administration. My commitment to staying abreast of the most recent developments ensures that my insights are not only accurate but also reflective of the current state of Social Security affairs.
Now, delving into the content of the provided article, several key concepts are integral to understanding the intricacies of Social Security benefits:
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Average Monthly Benefit: The article mentions that the average Social Security beneficiary received $1,696.35 in monthly benefits as of March 2023. This figure serves as a benchmark for evaluating individual benefits, providing a snapshot of the typical payout.
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Factors Influencing Benefit Size:
- Timing of Filing: The length of time an individual waits until filing for Social Security is a critical factor in determining the benefit amount. Delaying the filing generally leads to larger monthly payouts.
- Earning History: The amount earned during one's working career directly impacts the Social Security payout. Higher earnings typically result in a larger benefit, with a maximum possible benefit mentioned as $3,627.
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Types of Benefits Considered: The analysis focuses specifically on Old-Age, Survivors, and Disability Insurance (OASDI). Supplemental Security Income (SSI) is explicitly excluded from this evaluation. OASDI is a key component of the Social Security program, providing benefits to retired and disabled individuals, as well as survivors.
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State-by-State Analysis: The article explores the distribution of Social Security benefits across different states. To rank the states, the author utilized data from the Social Security Administration, considering both the total benefits paid by state and the number of Social Security beneficiaries in each state. The ranking is presented in reverse order, with the state receiving the most Social Security benefits ranked as No. 1.
In summary, my expertise positions me to navigate the nuances of Social Security benefits, and the information provided in the article aligns with my in-depth knowledge of the subject matter. The interplay between filing decisions, earnings history, and regional variations in benefit distribution sheds light on the diverse landscape of Social Security across the United States.
FAQs
This calculation looks at years of coverage in place of someone's earnings to estimate how much they might receive from Social Security. For 2024, the special minimum benefit starts at $50.90 for someone with 11 years of coverage and goes to $1,066.50 for workers with 30 years of coverage.
What state pays the lowest SSI benefits? ›
The SSI benefits don't vary much by location. The difference between the area with the highest average SSI benefit (Washington, D.C.) and the lowest average SSI benefit (North Dakota) is just $75.42 per month.
Who benefits least from Social Security? ›
About 4 percent of the aged population never receives Social Security benefits. These never-beneficiaries include higher proportions of women, Hispanics, immigrants, the never-married, and the widowed than the beneficiary population; never-beneficiaries are also comparatively less educated.
What is the best state to live off Social Security? ›
1. Iowa. Iowa tops the list for best states to live on just a Social Security check thanks to a number of factors. Overall, the monthly cost of living-rent, groceries, healthcare, utilities, transportation, and any miscellaneous expenses-comes to just under $3,000.
Do I get Social Security if I never worked? ›
But even if you never worked and therefore don't have an earnings record, you're not necessarily out of luck. If you're married (or were married) to someone who's entitled to Social Security, you can collect spousal benefits equal to 50% of your husband or wife's benefits at full retirement age.
Does stay at home mom get Social Security? ›
A stay-at-home parent can get a Social Security check just like any other worker. Here's how. In order to qualify for a full Social Security benefit, you have to have worked 40 quarters, which equates to 10 years, earning a minimum of at least $1,640 per quarter.
What is the hardest state to get SSI? ›
Worst States for Social Security Disability approval
- Oklahoma. Oklahoma is the hardest state to get approved for social security disability. ...
- Arizona. Arizona is the second-hardest state to get approved for social security disability. ...
- Mississippi. ...
- Texas. ...
- Florida.
1. Kansas: Acquiring the highest approval probability, Kansas boasts a 2020 SSDI approval rate of 69.7%, marking a remarkable ascent from its 2019 rate of 61.3%. The average monthly benefit for SSDI beneficiaries rests at $1,228. 2.
What state pays highest SSI? ›
Here's the top five states by average SSI payments:
- New Jersey: $1,689 per month.
- Connecticut: $1,685 per month.
- Delaware: $1,659 per month.
- New Hampshire: $1,644 per month.
- Maryland: $1,624 per month.
The amount a person receives in Social Security benefits is not directly affected by their current income or wealth. Therefore, even if someone is a millionaire or billionaire, they can still receive Social Security benefits if they have a qualifying work history.
Social Security offers a monthly benefit check to many kinds of recipients. As of December 2023, the average check is $1,767.03, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average.
What are the three ways you can lose your Social Security? ›
Social Security: 4 Ways You Can Lose Your Benefits
- You Forfeit Up To 30% of Your Benefits by Claiming Early. ...
- You'll Get Less If You Claim Early and Earn Too Much Money. ...
- The SSA Suspends Payments If You Go To Jail or Prison. ...
- You Can Lose Some of Your Benefits to Taxes. ...
- You Can Lose SSDI in a Few Different Ways.
According to the Missouri Economic Research and Information Center, the lowest overall costs of living were found in Mississippi, Oklahoma, Kansas, Alabama, and West Virginia: Cheapest states to retire.
What is the best state for poor seniors? ›
The best state will depend on the individual's specific needs and preferences. However, states like Alabama, Tennessee, West Virginia, South Carolina, and Wyoming are generally good options due to their affordability and quality of life for seniors.
What is the cheapest state to live in on Social Security? ›
Iowa ranks as the most affordable overall state for those living on a Social Security check, with low rent as one of the prime contributors. More than 17% of residents are 65 or older.
Can I get Social Security if I only worked 10 years? ›
If you've worked and paid taxes into the Social Security system for at least 10 years and have earned a minimum of 40 work credits, you can collect your own benefits as early as age 62. We base Social Security benefits on your lifetime earnings.
What happens if I don't get 40 credits for Social Security? ›
We cannot pay benefits if you don't have enough credits. In 2024, you receive 1 credit for each $1,730 of earnings, up to the maximum of 4 credits per year. Each year the amount of earnings needed for credits goes up slightly as average earnings levels increase.
Is it better to collect Social Security at 62 or 67? ›
You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.
