In 2025, millions of retirees in the United States will receive monthly Social Security payments that vary based on several factors, such as the state they live in, cost of living, and additional state benefits.
The new 2.5% cost-of-living adjustment (COLA) this year has given retirees a slight increase in their benefits to help them keep up with inflation. However, depending on where you live, the actual amount you receive could differ significantly.
What is the Impact of the COLA on Social Security Payments?
This year’s 2.5% COLA aims to ensure Social Security payments keep pace with inflation, preserving the purchasing power of beneficiaries. For those receiving Supplemental Security Income (SSI), there have been some increases as well:
Maximum payment for SSI recipients: $967 per person.
Married couples: Up to $1,450.
Essential individuals: $484 per month.
Although the COLA is applied nationwide, the actual amount each person receives can still vary depending on factors like local cost of living, average income, and whether the state provides additional state supplements to SSI.
Which States Pay the Most in Social Security in 2025?
Some states offer higher monthly Social Security payments, driven by a combination of high income levels, lower living costs, and additional state-level support for seniors. Here are a few states where retirees can expect the highest monthly checks:
Connecticut
Average monthly check: $2,190.05
With strong per capita income and state policies that favor seniors, Connecticut offers some of the highest Social Security benefits.
New Jersey
Average monthly check: $2,183.82
New Jersey boasts high income levels and a stable environment for retirees, helping boost monthly payments for seniors.
Delaware
Average monthly check: $2,170.63
Delaware is a popular retirement destination due to its tax benefits and extra state support for retirees, making it an attractive option for those receiving Social Security.
Maryland
Average monthly check: $2,139.54
With a highly skilled workforce contributing to higher Social Security taxes, Maryland retirees receive a decent monthly payout.
Why Are There Such Differences Between States?
The differences in Social Security payments between states can be attributed to several key factors:
Lifetime Earnings: Social Security benefits are calculated based on an individual’s 35 highest-earning years. If you worked in a state with higher wages, you’re likely to receive a larger check.
State Supplements to SSI: Some states provide additional payments to SSI recipients, which can increase monthly benefits for low-income or disabled individuals.
Cost of Living: States with higher housing, food, and healthcare costs tend to offer more generous policies or higher benefits to ensure retirees can cover their expenses.
How Can You Increase Your Social Security Payment?
If you want to maximize your Social Security check, here are some strategies:
- Work More Years: Social Security benefits are based on your 35 highest-earning years. If you have “0 income” years in your calculation, working longer can help fill in those gaps.
- Delay Your Retirement: If you wait until age 70 to begin claiming Social Security, you can receive up to 8% more per additional year you delay.
- Generate Extra Income: Increasing your current income can have a direct impact on your future Social Security payment calculation.
- Consider Moving to Another State: Some states offer better tax treatment for retirees, which can help you make the most of your Social Security benefits. Moving to a state with lower taxes or more favorable policies for seniors could increase your overall retirement income.
The State You Live In Makes a Difference
While the 2.5% COLA in 2025 brings a modest increase in Social Security benefits, living in certain states can significantly impact the amount you receive each month.
States like Connecticut, New Jersey, Delaware, and Maryland are known for offering higher Social Security payments due to factors like income levels, cost of living, and additional state support.
Understanding these differences and strategies to increase your benefits can help you make the most of your Social Security income during retirement.
