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

Retirees in New Hampshire face some of the highest deficits in the nation when trying 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 the Granite State has an annual shortfall of $6,564, or about $547 per month, even with their mortgage paid off.

The budget math highlights the gap:

Housing costs drive the deficit

Retirees in New Hampshire face average monthly living expenses of $2,668, while their median Social Security benefit is just $2,121. With housing costs averaging $921 per month, Social Security benefits fall short long before other essentials like food, healthcare, and transportation are added in.

The analysis underscores that “housing costs are what really separate the states where Social Security is enough from those where it falls short”. New Hampshire retirees spend nearly $1,000 per month on housing-related expenses—more than double the costs in surplus states such as Alabama ($419) or West Virginia ($398).

At 43% of the typical Social Security check, New Hampshire’s housing burden far exceeds the 30% affordability guideline established by the Department of Housing and Urban Development. This imbalance leaves retirees unable to cover other basic needs without additional income.

Retirement in New Hampshire: scenic, but expensive

New Hampshire offers many qualities that attract retirees, including access to the White Mountains, Lake Winnipesaukee, and a slower-paced lifestyle. Its lack of a state income tax and sales tax also appeals to some seniors. But these tax breaks do not offset the state’s elevated property taxes, which are among the highest in the nation.

Harsh winters also drive up heating and utility costs, adding to retirees’ ongoing financial burden. For seniors with strong pensions or significant savings, New Hampshire can offer a high quality of life. For those relying only on Social Security, however, the numbers simply don’t add up.

National comparison

Nationally, retirees depending solely on Social Security face an average annual shortfall of $2,762, or about $230 per month. New Hampshire’s $6,564 deficit is more than double that figure, ranking it among the five worst states in the nation for affordability in retirement.

Within New England, New Hampshire’s challenges are part of a broader regional pattern. Massachusetts retirees fall short by $7,345 annually, while Connecticut’s deficit is $5,436. Even Rhode Island, with a smaller $4,164 shortfall, illustrates how the region consistently ranks as unaffordable for seniors living on benefits alone.

The outlook for retirees on Social Security

The looming solvency issue facing Social Security adds another layer of concern. Without reform, benefits may be cut to 77% of their current levels by 2033. For retirees in New Hampshire, this would deepen today’s $6,564 annual shortfall to nearly $11,000.

New Hampshire offers natural beauty, strong community ties, and tax advantages, but for retirees without supplemental income, it is financially out of reach. Even with a mortgage paid off, the state’s high housing costs and property taxes make living on Social Security alone unsustainable.

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