2 min Read
By John Csiszar
Social Security benefits are paid out through a complex formula that factors in how much a taxpayer earned during their working career and at which age they file for benefits. When taken en masse, the average Social Security retirement payout for all retired workers as of January 2023 was $1,827, but the maximum possible benefit reached $4,555.
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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. Read on to look at the 10 states that received the most — but what about the states that received the least?
10. Georgia
- Total Social Security Received: $2.87 billion
- Total Number of Recipients: 1,918,848
9. North Carolina
- Total Social Security Received: $3.39 billion
- Total Number of Recipients: 2,202,898
8. Illinois
- Total Social Security Received: $3.89 billion
- Total Number of Recipients: 2,271,926
7. Ohio
- Total Social Security Received: $3.6 billion
- Total Number of Recipients: 2,409,265
6. Michigan
- Total Social Security Received: $3.61 billion
- Total Number of Recipients: 2,253,295
5. Pennsylvania
- Total Social Security Received: $4.57 billion
- Total Number of Recipients: 2,878,165
4. New York
- Total Social Security Received: $5.80 billion
- Total Number of Recipients: 3,680,521
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3. Texas
- Total Social Security Received: $6.66 billion
- Total Number of Recipients: 4,475,805
2. Florida
- Total Social Security Received: $7.58 billion
- Total Number of Recipients: 4,909,642
1. California
- Total Social Security Received: $9.34 billion
- Total Number of Recipients: 6,166,205
More From GOBankingRates
As an expert in financial planning and retirement topics, I have a thorough understanding of retirement planning, Social Security benefits, and the intricacies of the U.S. Social Security system. My expertise spans from the calculation of Social Security benefits based on earnings history to the factors influencing benefit amounts and the geographic distribution of beneficiaries.
The information you provided touches upon several crucial concepts related to retirement and Social Security:
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Social Security Benefits Formula: The article mentions the complex formula used to calculate Social Security benefits, which considers factors such as a taxpayer's lifetime earnings and the age at which they start claiming benefits. The maximum and average benefit amounts are also highlighted, showcasing the variability in payouts.
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State-by-State Analysis: The article delves into a state-by-state breakdown of the total Social Security benefits received and the number of recipients in each state. It emphasizes that the analysis only includes Old-Age, Survivors, and Disability Insurance (OASDI) benefits, excluding Supplemental Security Income (SSI).
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Top States Receiving Social Security: The article lists the top 10 states that received the most Social Security benefits as of a specific date in January 2023. It reveals the states' total Social Security funds received and the number of beneficiaries in each state, highlighting California, Florida, Texas, and New York as the top recipients.
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Retirement Readiness: The article prompts readers to consider their retirement readiness and offers related financial advice, including strategies to maximize paychecks, recession-proofing retirement savings, and uncovering money management insights.
Overall, the article emphasizes the importance of understanding Social Security, particularly in terms of the diverse benefits received across different states and the factors influencing benefit amounts. It also encourages individuals to consider their financial preparedness for retirement.
Should you have further inquiries or require deeper insights into retirement planning, Social Security, or related financial matters, I'd be more than happy to assist.
