You Can Live Well in Indiana on Just Your Social Security, If You’ve Paid Off Your Mortgage

Indiana is one of the rare states where retirees can live on Social Security alone, as long as their mortgage is paid off.

According to Realtor.com® analysis of median Social Security benefits by state and the Elder Economic Security Standard Index,, the typical retiree in Indiana has an annual surplus of $1,392, or about $116 per month, after covering essential living expenses.

That means there's a good amount left over to enjoy the moments retirement is meant for, especially compared to other harder hit parts of the country.

Modest Housing Costs Make the Difference

Housing affordability is the factor that sets Indiana apart.

Retirees in Indiana face average monthly living costs of $1,900, with housing expenses around $504 per month. Against those costs, the state’s median Social Security benefit of $2,016 per month provides just enough to keep retirees in the black.

What helps set these states apart is their relatively modest housing costs. In surplus states like Indiana and Delaware, retirees typically spend about $510 a month on housing—well below the $900-plus monthly averages seen in shortfall states.

This relative affordability makes Indiana one of just 10 states nationwide where Social Security is sufficient to cover all basic living costs without leaving retirees in a deficit.

The Midwest advantage

Indiana’s place on this list reflects broader Midwest affordability trends. Compared to the East Coast, where property taxes and insurance costs often soar above $1,000 a month, Indiana offers retirees predictability and stability in housing expenses.

The state has also become a draw for retirees from neighboring states like Illinois and Ohio, where housing markets can be more volatile.

Smaller Indiana cities—such as Fort Wayne, Evansville, and Lafayette—provide affordable living combined with access to healthcare and community resources. Even Indianapolis, the state’s largest metro, remains markedly less expensive than coastal urban centers.

Comparison to other states

Nationally, retirees relying solely on Social Security face a far harsher reality. On average, there is a shortfall of $2,762 annually, or about $230 a month, even after mortgages are paid. It’s a striking finding given that nearly 22 million seniors are estimated to live on Social Security alone, according to a June 2025 study from The Senior Citizens League. 

Indiana’s $1,392 cushion may not seem huge, but compared to states like Michigan—which barely breaks even with just a $132 surplus—it represents a meaningful difference. Delaware tops the list with a surplus of $1,764, while Arizona follows closely behind Indiana with $1,224. Together, these states show how lower housing costs create breathing room in retirement budgets.

The future of Social Security

For now, Indiana offers a rare level of financial stability for retirees who rely on Social Security. But the margin remains slim, and potential changes to the program could undermine it.

Social Security itself faces long-term funding issues. Without reform, the program could become insolvent by 2033, forcing benefits to be cut to about 77% of current levels. For Indiana retirees, that shift would turn today’s modest surplus into a deficit.

Still, when compared to most of the country, Indiana remains one of the most affordable places to age in place.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.