Aug 6, 2025
Social Security was designed as a nation-wide safety net for taxpayers, providing a basic income for retirees, all administered by the federal government.
However, while it was meant to provide a universal safeguard, the specific benefits vary based on a variety of factors. And, in reality, this safety net can be woefully threadbare depending on where you live.
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LendingTree recently analyzed data on taxes, living costs, and Social Security payments across the 100 largest metros in the U.S. and found that, on average, Social Security covers only 30.11% of a retiree’s spending needs.
And, among the metros where Social Security covers the lowest percentage of assumed pre-tax requirements, four are located in one state: California.
Here’s a closer look at the top five most financially challenging cities for retirees. Is it time to consider changing your ZIP code?
San Jose, California
Located in the heart of Silicon Valley, San Jose may be an ideal location for innovators and tech startups, but considering its high cost of living — particularly in housing, food, and healthcare — it’s less than ideal for retirees that largely depend on Social Security to get by.
According to LendingTree’s analysis, benefits from the program would cover just 25.42% of the average retiree’s spending budget.
A typical retiree living in San Jose would need to generate a significant amount of additional income — roughly $60,811 — on top of their benefit payments to meet average living expenses.
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Oxnard, California
With roughly seven miles of beaches stretching along the Pacific coast, the city of Oxnard provides plenty of beautiful ocean views — but little financial security.
Even in less-expensive coastal cities like Oxnard, the state’s overall high cost of living can make it a struggle for retirees to make ends meet on Social Security alone.
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Monthly benefit checks cover just 25.28% of the average retirees annual spending budget, according to LendingTree. In order to cover the rest, they will need to generate roughly $61,244 in additional income every year.
Washington, DC
The only city cited near the bottom of the LendingTree list that isn’t located in California is Washington, DC. Social Security payments would cover less than a fourth — 24.91% — of a typical retiree’s annual budget in this city.
Washinton’s relatively high costs for housing, transportation, and healthcare mean retirees must pull in more than $78,431 before taxes to match average spending needs.
Benefits from Social Security would only cover $19,540, which means retirees would need to lean on other income sources to make ends meet.
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Los Angeles, California
Unsurprisingly, living the Hollywood dream is far from affordable. Los Angeles is frequently cited as one of the most expensive cities in America, with the cost of living coming in at 49% higher than the national average.
LendingTree’s analysis reveals it can be especially painful for retirees, as they’d need a significantly higher income in order to meet their expenses.
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A typical Social Security check would cover only a fraction of their living costs — a mere 24.85%. This would result in many retirees having to rely on additional income such as savings, pensions, or other investment earnings to meet their financial needs.
San Francisco, California
The City by the Bay has the unfortunate honor of being the most financially-challenging place to retire. Even if a retiree has paid off their mortgage, property taxes, utilities, healthcare, transportation, and other daily expenses can easily push living costs past a strict annual budget.
According to LendingTree, the average retiree in San Francisco needs to earn roughly $85,364 before taxes just to get by, and Social Security covers barely 24.28% of that.
The bottom line
If you live in any of the aforementioned cities — or in any other comparatively expensive metro — you may be tempted to consider relocating.
For example, Social Security benefits can cover nearly 34.61% of spending in metros like McAllen, Texas, and 33.12% in Buffalo, New York, according to the LendingTree data.
If you’re reluctant to move, however, you should consider whether your own safety net is sufficient to help you get by despite the costs in your hometown.
Many of the most expensive cities mentioned above also have some of the best job opportunities and highest home prices in the country, which means there’s a chance that — if you’re a retiree who has lived and worked there for years, if not decades — you’ve had a lucrative career, built up a sizable 401(k), and own valuable property.
Therefore, if you have robust savings shored up in addition to those Social Security benefits, leaving your family and friends behind to uproot to a more cost-effective state may not be as tempting.
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
