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

Retirees in Maryland face one of the steepest financial challenges in the country, if they depend on Social Security alone.

According to a Realtor.com® analysis of median Social Security benefits by state and the Elder Economic Security Standard Index, seniors in the Old Line State experience an annual shortfall of $3,672, or about $306 per month, even with their mortgage fully paid.

The data begs an alarming question: will retirees be able to stay in their homes into retirement? Or will they be forced out?

Housing costs push budgets over the edge

Retirees in Maryland face average monthly expenses of $2,390, while the median Social Security benefit is just $2,084. With housing costs averaging $755 per month, nearly 36% of a retiree’s monthly check is gone before other essential expenses like food, healthcare, and transportation are considered.

Clearly, housing costs are what really separate the states where Social Security is enough from those where it falls short. In Maryland, the $755 average monthly housing bill—covering property taxes, utilities, insurance, and maintenance—keeps retirees deep in deficit territory.

By contrast, in surplus states like West Virginia ($398) or Alabama ($419), housing costs are less than half as much.

Retirement in Maryland: location and lifestyle vs. affordability

Maryland offers many advantages that appeal to retirees, including proximity to Washington, DC, and Baltimore, strong healthcare systems like Johns Hopkins, and a mix of coastal and rural communities. Cities like Annapolis and Frederick are especially popular with older adults for their amenities and charm.

But those lifestyle perks come at a price. Property taxes are higher than in much of the South, insurance premiums can be steep, and utility costs add another layer of financial stress. For retirees without pensions or additional retirement savings, Maryland’s elevated cost of living leaves Social Security checks stretched too thin.

Maryland compared to National and Regional trends

Nationally, the typical retiree relying solely on Social Security faces an average shortfall of $2,762 annually, or about $230 a month. Maryland’s $3,672 deficit is worse than the national average, but not as severe as the hardest-hit states such as Vermont (-$8,088) or New Jersey (-$7,512).

Regionally, Maryland’s situation aligns with other high-cost Mid-Atlantic states. New York retirees fall short by $7,248 annually, while Connecticut seniors face a $5,436 deficit. Maryland’s deficit may be smaller, but it still firmly places the state among those where Social Security alone isn’t enough.

The outlook for Social Security

Looking ahead, Social Security’s uncertain future makes the situation even more precarious. Without congressional action, benefits may be cut to about 77% of current levels by 2033. For Maryland retirees, today’s $3,672 annual shortfall could balloon to more than $7,000.

so, while Maryland has become incredibly desirable, for retirees without additional income sources, the math doesn’t work—and for many already living in the state, the costs of staying put may no longer be sustainable.

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