Retirement looks different for everyone, but for millions of Americans, the monthly Social Security deposit is the financial anchor of their post-work life. While the federal government uses a standard formula to calculate benefits for every citizen, the average payout varies wildly depending on where you live. New data released in 2025 reveals that your neighbors in some states might be receiving hundreds of dollars more per month than retirees in other parts of the country.
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Why Your Zip Code Doesn’t Actually Change Your Check
It is a common misconception that moving to a different state will automatically boost your Social Security payments. In reality, the Social Security Administration (SSA) does not adjust your benefit based on your local cost of living. The reason average checks are higher in places like Connecticut or New Jersey is purely statistical. These states tend to have higher average wages, and since Social Security benefits are based on your 35 highest earning years, residents there end up with larger monthly payments. If you retire in a high income state, you likely paid more into the system during your career, resulting in a bigger reward now.
The States Where Retirees Earn the Most
According to the 2025 Annual Statistical Supplement, the Northeast is the undisputed champion of high Social Security benefits. Connecticut tops the list with an average monthly payment of $2,196.15. It is followed closely by New Jersey and New Hampshire. These are also the areas with high concentrations of retirees earning over $3,000 a month. In contrast, states with lower historical wages, such as Mississippi and Louisiana, sit at the bottom of the list, with averages hovering around $1,800.
The Impact of the 2025 COLA and New Laws
The figures for 2024 do not even tell the whole story. Since that data was collected, beneficiaries received a 2.5% Cost of Living Adjustment (COLA) in January 2025. This raise was designed to help seniors keep up with inflation, though it was smaller than the massive hikes seen in previous years. Furthermore, the implementation of the Social Security Fairness Act this year has opened the door for millions of public servants who were previously penalized, potentially raising the average payout in states with large public sector workforces.
Top 10 States for Social Security Income
The following table ranks the states where retired workers received the highest average monthly benefits before the 2025 COLA took effect.
| Rank | State | Average Monthly Benefit |
| 1 | Connecticut | $2,196.15 |
| 2 | New Jersey | $2,190.05 |
| 3 | New Hampshire | $2,183.82 |
| 4 | Delaware | $2,170.63 |
| 5 | Maryland | $2,139.54 |
| 6 | Washington | $2,099.38 |
| 7 | Minnesota | $2,095.13 |
| 8 | Massachusetts | $2,084.32 |
| 9 | Michigan | $2,066.03 |
| 10 | Utah | $2,065.18 |
Key Factors That Determine Your Payment
While state averages are interesting, your personal benefit depends on your unique work history. The SSA looks at three main pillars when calculating your check:
- Inflation Adjustments: Annual COLAs permanently increase your base benefit amount to fight inflation.
- Lifetime Earnings: The more you earned (up to the taxable maximum) during your career, the higher your benefit.
- Work History Length: The formula uses your top 35 years of earnings. If you worked fewer than 35 years, zeroes are averaged in, lowering your payment.
- Claiming Age: You can claim as early as 62 for a reduced amount or wait until 70 for a maximum bonus.
