For retirees eyeing Delaware as place to settle during retirement, they’ll be happy to know that financially speaking, their money will go quite far.
Among all 50 states, Delaware stands out as the most affordable place to live on Social Security benefits alone—provided you’ve paid off your mortgage.
According to the Realtor.com® analysis of median Social Security benefits by state and the Elder Economic Security Standard Index, the typical retiree in Delaware enjoys an annual surplus of $1,764, or about $147 a month, after covering essential living costs. A nice chunk of change that can be used to make retirement a lot more fun!
Why Delaware tops the list
Here’s how the math breaks down: retirees in Delaware face average monthly living expenses of $1,992, with housing costs coming in at $555 per month. That includes property taxes, insurance, utilities, and maintenance, but not a mortgage. Against these costs, the state’s median Social Security benefit of $2,139 per month leaves enough breathing room to cover occasional extras or unplanned expenses.
What gives Delaware this advantage is its relatively modest housing costs compared to nearby states. While a retiree in New Jersey spends an average of $1,304 a month on housing alone, a Delaware homeowner spends less than half that.
This affordability is particularly notable given Delaware’s proximity to some of the priciest markets in the country. A short drive north, retirees in New York face an annual shortfall of more than $7,000 on Social Security benefits alone. Massachusetts and New Jersey post similar deficits. Delaware, in contrast, allows seniors to age in place without the constant worry of stretching their dollars too thin.
Local context: A retirement haven on the East Coast
Delaware has long marketed itself as a retirement-friendly state, thanks in part to its low property taxes, absence of a sales tax, and relatively mild climate compared to the Northeast. For retirees relocating from higher-cost states like Pennsylvania, Maryland, or New Jersey, Delaware often delivers instant savings.
The state has also seen steady population growth among retirees, especially in coastal towns such as Lewes and Rehoboth Beach. These communities offer access to beaches, healthcare facilities, and cultural activities without the hefty price tag of more urbanized coastal states.
How Delaware compares nationally
Nationally, the picture is far less rosy. On average, retirees face a shortfall of $2,762 per year, or about $230 a month, even after paying off their mortgages. That means Delaware isn’t just doing well by regional standards—it’s the best state in the country for retirees relying solely on Social Security.
Compared to other “surplus” states, Delaware’s cushion is also the most comfortable. Michigan, for example, just barely makes the list with an annual surplus of $132—barely $11 a month. Retirees in Arizona and Indiana fare somewhat better, with surpluses over $1,200, but still fall short of Delaware’s top-ranked affordability margin.
The future for retirees in Delaware
For seniors choosing to retire in Delaware, the future looks sustainable—at least for now. The main challenge on the horizon is the broader uncertainty surrounding Social Security itself. Current projections suggest the program could face insolvency by 2033, which may reduce benefits by as much as 23% if Congress fails to act. That would transform Delaware’s current surplus into a shortfall almost overnight.
Still, Delaware’s relatively low housing burden, combined with favorable tax policies, means it remains one of the safest bets for retirees counting on Social Security as their primary source of income. For seniors who have achieved the milestone of paying off their mortgage, Delaware offers something rare in today’s financial climate: the ability to live not just frugally, but comfortably, on Social Security alone.
This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.