Top Locations with the Highest and Lowest Social Security Coverage for Living Costs
In a recent analysis by LendingTree, it was found that the top 10 metro areas where Social Security benefits cover more than 30% of retirement spending are predominantly smaller or less expensive metros.
The study, published on July 15, 2025, revealed that McAllen, Texas, tops the list with Social Security covering up to 35% of annual retirement spending. Other metro areas also exceed the 30% threshold, although large cities like Los Angeles and San Francisco fall below that mark, covering just 24-25% of retirement spending.
The exact names of the other metro areas in the top 10 list were not fully detailed in the search results. However, the coverage percentage range from LendingTree’s report suggests that several other metros across various U.S. regions also have Social Security benefits covering more than 30% of retirement spending.
This finding contrasts with the situation in California, where eight out of the ten places where Social Security covers the lowest percentage of retirees' spending are located. Cities in California hold five of the ten spots on the list of the 10 Most Expensive Cities to Live in the US.
The methodology used to determine where Social Security stretches the furthest includes estimating annual retiree spending, calculating coverage by Social Security, and applying the "4% rule" to determine required savings. Researchers used data from the U.S. Bureau of Labor Statistics, the U.S. Bureau of Economic Analysis, the BLS Consumer Price Index, the Social Security Administration, the Tax Foundation, and the U.S. Census Bureau.
For those planning for retirement, Kiplinger's "Retirement Savings on Track?" series can provide insights into how much you should have saved based on age and income. For instance, if you are aged 50-55, 55-60, or 60-65, you can find out how much you should have saved to be on track for a comfortable retirement.
It's important to note that while retiring in less expensive metro areas may allow Social Security benefits to cover a larger percentage of retirement spending, the cost of living can still vary significantly. For instance, the top two cities on the list of most expensive cities to live in (Manhattan, New York, and Honolulu, Hawaii) have Social Security payments that cover more of spending than in Oxnard or Stockton, California, despite their lower Social Security coverage percentages.
In conclusion, while the exact top 10 metro areas where Social Security benefits cover more than 30% of retirement spending were not fully provided in the search results, it is clear that smaller, less expensive metro areas tend to offer more favourable conditions for retirees relying on Social Security benefits. However, careful planning and disciplined savings, such as those required to become a 401(k) millionaire, are crucial for a comfortable retirement, regardless of where you choose to live.
Personal finance experts might recommend considering metro areas where Social Security benefits cover a higher percentage of retirement spending, such as those identified in a recent LendingTree analysis. These areas, often smaller or less expensive, could potentially provide a more financially secure retirement for individuals relying on Social Security benefits. However, it's important to remember that while these metro areas may offer more favorable conditions, individual expenses can still vary significantly, even within the same region or state.
