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

Michigan squeaks onto the list of states where retirees can technically live on Social Security alone—if they’ve already paid off their mortgage.

According to a Realtor.com® analysis of median Social Security benefits by state and the Elder Economic Security Standard Index, the typical retiree in Michigan has an annual surplus of just $132, or about $11 per month, after covering essential living costs.

While that may not seem like much to celebrate, compared to some parts of the country, it's a sizeable return.

Housing costs make or break the budget in Michigan

The data shows just how tight the balance is in Michigan. Retirees face average monthly expenses of $2,056, with housing costs around $531 per month. Against those expenses, the state’s median Social Security benefit of $2,067 per month barely clears the line, leaving seniors with a cushion so small that even minor budget changes could erase it.

And yet, Michigan’s non-mortgage housing expenses are modest compared to what we would call "shortfall" states, but they still sit slightly higher than in other "surplus" states like West Virginia ($398) or Alabama ($419). With housing costs averaging $531 per month, retirees’ budgets end up just barely balanced.

Retirement living in Michigan

Michigan has long appealed to retirees seeking affordability and access to natural beauty. The state offers a mix of options: cities like Grand Rapids and Ann Arbor provide cultural and healthcare amenities, while smaller towns and rural communities along the Great Lakes deliver quieter, lower-cost lifestyles.

Now, property taxes in Michigan are higher than in some other surplus states, which pushes monthly housing expenses upward. Utility costs, especially in northern parts of the state, can also strain budgets during cold winters. These regional challenges help explain why Michigan’s surplus is the smallest in the country.

Still, retirees benefit from the state’s relatively low overall cost of living compared to many East Coast or West Coast states, with housing expenses far below the nearly $1,000–plus monthly costs retirees face in states like New Jersey or Massachusetts.

Michigan vs. National and Regional Trends

Nationally, retirees relying solely on Social Security face an average shortfall of $2,762 annually, or about $230 each month. By that measure, Michigan’s $132 surplus looks like a success—albeit a fragile one.

Compared to other surplus states, Michigan lags significantly. Delaware tops the list with a $1,764 surplus, followed by Indiana ($1,392) and Arizona ($1,224). Even Tennessee, the next lowest on the list, leaves retirees with a $156 annual cushion. Michigan’s position at the very bottom underscores just how precarious the situation is for retirees here.

The outlook for retirees on Social Security

Even without a mortgage, retirees must budget for property taxes, insurance, utilities, and maintenance, and in Michigan, these costs are enough to eat up nearly the entire Social Security benefit. Any increase in utilities, healthcare, or insurance premiums could tip retirees into deficit territory.

Compounding the risk, Social Security itself faces long-term solvency challenges. Without congressional action, benefits could be reduced to about 77% of current levels by 2033, which would turn Michigan’s razor-thin $132 surplus into a shortfall of more than $4,700 per year.

For now, retirees in Michigan can technically live within their means on Social Security alone, but the margin is so small that perhaps that only offers little comfort.

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