New Study: This Is the City Where Your Social Security Dollars Go the Furthest

When it comes to retirement, where you live can matter a great deal, especially if you want your Social Security benefits to stretch as far as possible. Since many people haven’t saved up—or aren’t able to save—for the full cost of living out their golden years, these Social Security payments can be a crucial part of affording everyday costs.

“Most Americans aren’t fortunate enough to have a seven-figure nest egg or a pension to lean on,” said Matt Schulz, LendingTree’s chief consumer finance analyst, in a press release. “Most people have tight budgets, limited expendable income and low retirement account balances. It’s all going to add up to a challenging situation for retirees and their loved ones in the next 15 to 20 years.”

To that end, LendingTree recently analyzed the biggest metro areas in the country to figure out which ones are the best for stretching those Social Security dollars the furthest and which places will require more out-of-pocket dollars. Read on to see where your desired retirement location ranks.

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How did researchers determine the city where Social Security income goes the furthest?

As the press release points out, LendingTree researchers “estimated average annual retiree expenditures by multiplying the expenditures of average retired workers (using U.S. Bureau of Labor Statistics—BLS—2023 Consumer Expenditure Survey data) with the cost of living” in the 100 largest U.S. metro areas, adjusting for inflation. They also divided the average annual Social Security retirement benefit (based on 2024 Social Security Administration averages plus the 2025 cost-of-living adjustments) by the implied pretax income required.

How far does Social Security income go on average?

The report found that, across the 100 largest U.S. metro areas, the average estimated yearly expenditure before taxes for retirees is $71,407, while the average Social Security income is $21,500—meaning that, on average, Social Security covers only 30.11% of retirees’ spending. That’s lower than the average coverage amount that the Social Security Administration estimates: The agency says Social Security benefits will replace around 40% of the income people earned in their working years.

Where does Social Security income go the furthest?

Of all 100 metro areas that LendingTree considered, Social Security benefits cover more than a third of retirement spending in only one location: McAllen, Texas. In McAllen, the implied pretax need for annual income is $61,821, while the average Social Security income is $21,398. This means that 34.61% of retirees’ projected annual spending is covered by Social Security.

Why does Social Security income go the furthest in McAllen, Texas?

Social Security income goes far in McAllen because the cost of living there is actually 13% lower than the national average. The median home value is also only $169,631, which is far lower than the national average home value of $370,489.

“There’s something to be said for living in a low-cost-of-living location, and McAllen fits that bill,” Schulz said. “Controlling your spending is a crucial step toward having a comfortable retirement, and that can be far easier in a place with cheaper housing and a lower cost of living.”

The cost of living in McAllen is likely low because it isn’t a major city. As the 23rd most populated city in Texas, McAllen has a population of 148,782 and is located close to the United States–Mexico border on the Rio Grande River. McAllen is roughly 240 miles south of San Antonio and 350 miles southwest of Houston.

Where else does Social Security income go far?

McAllen wasn’t the only Texas metro to make the top 10 list of places where your Social Security income can go far. Here are all the other U.S. cities where those dollars can really stretch:

1. McAllen, Texas

2. Buffalo, New York

3. El Paso, Texas

4. Syracuse, New York

5. Scranton, Pennsylvania

6. Wichita, Kansas

7. Augusta, Georgia

8. Tucson, Arizona

9. Little Rock, Arkansas

10. Tulsa, Oklahomo

Where does Social Security income cover the fewest expenses?

You likely won’t be too surprised by the places where Social Security income covers the lowest percentage of pretax expenses. Eight of those 10 metro areas are located in California. “There’s no question that many Californians will have to work longer than they’d like to, and many will have to look elsewhere to retire,” Schultz said.

Rounding out the bottom 10 are:

1. San Francisco

2. Los Angeles

3. Washington, D.C.

4. Oxnard, California

5. San Jose, California

6. San Diego

7. Sacramento, California

8. Riverside, California

9. Stockton, California

10. Miami

RELATED:

• New Report: These Are the Best Cities to Retire in the U.S. in 2025
• New Report: This Is the Safest Retirement Town in the U.S.
• New Study: You Can Retire in These U.S. States on Less Than $65,000 a Year

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Sources:

• LendingTree: “Where Social Security Goes the Furthest for Retirees”
• Social Security Administration: “Retirement Ready Fact Sheet for Workers Ages 61-69”
• U.S. Census Bureau: “McAllen City, Texas”
• U.S. News and World Report: “McAllen, TX”
• City of McAllen News: “McAllen Rated Number One U.S. City for Lowest Cost of Living”

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