You’ll Struggle To Live Well in Alaska on Just Your Social Security, Even If Your Mortgage Is Paid Off

Retirees in Alaska face one of the harshest financial gaps in the nation when attempting to live on Social Security alone.

According to a Realtor.com® analysis of median Social Security benefits by state and the Elder Economic Security Standard Index, the average retiree in Alaska experiences an annual shortfall of $4,152, or about $346 per month, even with their mortgage fully paid.

While that might not seem like a lot to some, it could mean all the difference to someone on a fixed income.

Housing costs weigh heavily on retirees

Retirees in Alaska face average monthly living expenses of $2,141, while the median Social Security benefit is just $1,795 per month. Housing alone—at $623 per month—consumes over a third of those benefits, before food, transportation, and healthcare are factored in.

That $623 per month goes primarily to property taxes, insurance, utilities, and maintenance. While this is lower than in states like New Jersey ($1,304) or Massachusetts ($1,007), Alaska’s lower-than-average Social Security benefit leaves seniors in a deficit despite somewhat more modest housing bills.

Retirement in Alaska: Remote and Expensive

Alaska is unique in its appeal to retirees. Its rugged landscapes, outdoor opportunities, and sense of independence attract those looking for a different kind of retirement. However, its remoteness drives up prices on everything from groceries to healthcare. Limited access to services—particularly in rural areas—can add additional costs, such as travel for medical care.

With that said, healthcare costs in Alaska consistently rank among the highest in the U.S., creating another barrier for seniors trying to stretch Social Security dollars. While the Alaska Permanent Fund (an annual dividend that is paid to Alaska residents from investment earnings of mineral royalties) provides some residents with supplemental income, it is not enough to offset the large shortfall for retirees without other savings.

Alaska vs. National trends

Across the country, retirees living solely on Social Security face an average shortfall of $2,762 annually, or about $230 per month. Alaska’s $4,152 gap is significantly higher, placing it among the 10 hardest states for retirees relying only on benefits.

By comparison, states like Vermont (-$8,088) and New Jersey (-$7,512) fare worse due to extreme housing costs. Still, Alaska’s combination of relatively modest benefits and elevated expenses—particularly for utilities and healthcare—keeps it firmly on the deficit list.

The outlook for retirees on Social Security

On top of this, Social Security itself faces long-term solvency challenges. Without reform, benefits could be cut to about 77% of current levels by 2033. For Alaska retirees, today’s $4,152 shortfall could grow to more than $8,000 annually.

While Alaska offers natural beauty and adventure, retirees relying solely on Social Security—even mortgage-free—will struggle to make ends meet. Supplemental income or significant savings are essential for seniors planning to live in the Last Frontier.

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