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

Tennessee barely makes the cut as a state where retirees can survive on Social Security benefits 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,, retirees in the Volunteer State have an annual surplus of $156, or just $13 per month, after covering their essential living costs.

While a razor-thin margin, the extra funds are far more than some homeowners in the country.

Housing costs keep Tennessee on the surplus side

Retirees in Tennessee face average monthly living expenses of $1,870, with housing costs averaging $474 per month once the mortgage is gone. The state’s median Social Security benefit of $1,883 per month just barely clears those expenses, leaving retirees technically in the black, but without much room for unexpected costs.

Still, homeowners do get to enjoy modest housing costs. In Tennessee, retirees’ housing-related expenses—including utilities, insurance, property taxes, and maintenance—fall under $500 per month. That puts them well below the nearly $1,000 to $1,300 monthly averages seen in shortfall states like New Jersey and Massachusetts.

This modest housing burden allows Tennessee to join the surplus list, even if only barely. At about 25% of total living expenses, housing costs remain under the 30% affordability threshold set by federal guidelines, keeping budgets balanced for retirees on fixed incomes.

Retirement life in Tennessee

Tennessee has grown increasingly popular among retirees, thanks to its lack of a state income tax, relatively low property taxes, and affordable housing markets. Cities such as Nashville and Knoxville offer cultural amenities and healthcare facilities, while smaller communities across the state appeal to those seeking lower costs and a slower pace of life.

The state’s mild climate, especially in Middle and East Tennessee, attracts seniors who want four seasons without the extreme winters of northern states. At the same time, Tennessee’s rapid growth—particularly in Nashville—has pushed up housing costs in some areas.

National comparison: barely above the line

Nationally, retirees relying solely on Social Security face an average annual shortfall of $2,762, or about $230 per month. Tennessee’s $156 surplus looks slim in comparison to top-performing states like Delaware ($1,764) or Indiana ($1,392). It also falls behind Arizona ($1,224) and South Carolina ($828), leaving Tennessee at the bottom of the surplus list—just above Michigan, which squeaks by with only $132 annually.

Still, even a slim surplus puts Tennessee ahead of most of the country. In high-cost states such as New York or Massachusetts, retirees relying solely on Social Security face deficits of more than $7,000 per year.

The outlook for retirees on Social Security

While Tennessee technically offers retirees a surplus, the margin is extremely fragile. The analysis warns that “even without a mortgage, retirees must budget for property taxes, insurance, utilities, and maintenance”—costs that have been rising steadily. A small increase in utility rates or insurance premiums could easily tip the state into deficit territory for retirees relying exclusively on Social Security.

On top of that, Social Security itself faces solvency challenges. Without reforms, benefits may be cut to about 77% of their current value by 2033, which would turn Tennessee’s already thin $156 surplus into a deficit.

Even so, Tennessee’s favorable tax structure, modest housing costs, and cultural amenities keep it on the surplus list for now. For retirees who have already eliminated their mortgage, the Volunteer State provides just enough balance to make Social Security alone a workable—if tight—retirement plan.

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