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

For retirees in Rhode Island, Social Security alone isn’t nearly enough to cover the cost of living—even with the mortgage paid off.

According to a Realtor.com® analysis of median Social Security benefits by state and the Elder Economic Security Standard Index, the typical retiree in Rhode Island faces an annual shortfall of $4,164, or about $347 per month.

The financial gap comes down to simply this: housing costs are just too expensive in the smallest state in the U.S. and even without a mortgage, seniors will struggle to make ends meet.

Housing Costs Push Retirees Into Deficit

Retirees in Rhode Island face average monthly living expenses of $2,341, while the median Social Security benefit is $1,994. With housing costs averaging $740 per month, nearly 37% of the average Social Security check disappears before other necessities—like healthcare, food, and transportation—are considered.

By comparison, Rhode Island’s $740 in average monthly housing-related costs—including property taxes, utilities, insurance, and maintenance—are far higher than in surplus states such as Alabama ($419) or West Virginia ($398).

Although Rhode Island’s housing costs aren’t the highest in New England—Massachusetts and New Hampshire both exceed $900 per month—they are still enough to make living on Social Security alone unsustainable.

Retirement in Rhode Island: quality of life at a price

Rhode Island offers plenty of appeal for retirees, from scenic coastal towns like Newport and Narragansett to the more urban setting in Providence. The state also boasts proximity to Boston and New York City, making it attractive to those who want access to larger metros while living in smaller communities.

However, these advantages come with a steep cost. Property taxes are higher than the national average, and utility costs—particularly heating in the winter—add to retirees’ ongoing financial burden. For seniors with pensions or retirement savings, Rhode Island can be an enjoyable place to live. For those relying on Social Security alone, the gap is too large to ignore.

National and Regional Comparison

Nationally, retirees depending solely on Social Security face an average annual shortfall of $2,762, or about $230 per month.

Rhode Island’s $4,164 deficit is worse than the national figure but smaller than in neighboring New England states like Massachusetts ($7,345 shortfall) and New Hampshire ($6,564). Still, the state firmly belongs on the list of places where Social Security alone isn’t enough.

The outlook for retirees on Social Security

The looming challenge of Social Security solvency adds to the problem. If Congress does not act, benefits may be reduced to 77% of their current levels by 2033. For Rhode Island retirees, that would expand today’s $4,164 annual shortfall into one approaching $7,000.

Rhode Island may offer beauty, culture, and convenience, but for retirees dependent solely on Social Security—even with the mortgage gone—the Ocean State is financially out of reach.

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