Retirees in these 5 American cities collect the highest Social Security checks in the country — but it’s still not enough to get by

In some cities, though, retirees earn a higher benefit than others. SmartAsset, a financial technology company, analyzed data from 345 U.S. cities and ranked them based on the average Social Security benefits residents receive. Here’s where retirees are getting the biggest benefits.

Where Social Security income is the highest

Out of 345 metro areas ranked based on mean Social Security benefits, these five cities were identified as the locations where retirees receive the highest Social Security payments.

• Ann Arbor, Michigan: $30,428
• Carmel, Indiana: $30,069
• Goodyear, Arizona: $29,157
• Cambridge, Massachusetts: $28,219
• Allen, Texas: $27,735

Unfortunately, even with benefits checks ranging from $4,851 to $7,544 more than the nationwide average, retirees in these metro areas would still face financial struggles if they tried to rely on just their Social Security to live on.

In fact, MIT's living wage calculator reveals an adult with no children in Ann Arbor would need an income of around $47,334 to cover basic expenses such as housing and health care — about $16,906 more than Social Security provides.

Residents in Carmel, Goodyear, Cambridge, and Allen wouldn't fare much better, with adults without kids requiring $44,773, $51,380, $62,487, and $45,875, respectively. In every case, even in cities where retirees average higher Social Security checks than most, the actual costs of living are well above the income these retirement benefits offer.

Social Security isn't going to be enough

The reality every current and future retiree should come to terms with is this: Social Security benefits are never going to be enough to fund your retirement.

This is true even if you live in a city where you and your peers get more benefits than most. In fact, it's true even if you are among the privileged few who receive absolute maximum benefit, which is $4,873 in 2024.

The reason you’ll always fall short is that Social Security is intended only to replace 40% of pre-retirement income for most retirees. It replaces even less for high earners because the formula used to determine monthly benefits is progressive. Benefits replace a smaller percentage of income as earnings rise.

Trying to cover all of your expenses on 40% of what you previously earned is not going to be sustainable for most people. In fact, those getting the max benefit only receive it because they earned the inflation-adjusted equivalent of $168,600 for most of their career. That’s why the maximum annual Social Security income of $58,476 — which seems high to most — would still lead to a major lifestyle downgrade for those receiving it.

Ultimately, the only path to a secure retirement is to have savings to add to Social Security so you aren't reliant on benefits alone. This is as true if you live in the five cities where Social Security benefits are the highest, as it would be in any city or town across America.