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

For retirees in Vermont, Social Security benefits fall dramatically short of covering even the most basic living expenses.

According to a Realtor.com® analysis of median Social Security benefits by state and the Elder Economic Security Standard Index,, Vermont ranks as the toughest state in the nation for retirees relying solely on Social Security.

And things would only get worse if something were to happen to the benefit all together.

Housing costs drive the deficit

Seniors here face an annual shortfall of $8,088, or about $674 per month, even with their mortgage fully paid.

The math illustrates the problem. Retirees in Vermont face average monthly living expenses of $2,628, while the state’s median Social Security benefit is just $1,954 per month. With housing costs averaging $838 per month—among the highest in the country for mortgage-free homeowners—budgets simply don’t balance.

At $838 per month, retirees’ housing-related expenses—including property taxes, insurance, utilities, and maintenance—are more than double those in low-cost states like West Virginia ($398) or Alabama ($419).

These elevated costs push housing well above the federal affordability benchmark, which recommends housing account for no more than 30% of income. In Vermont, housing consumes nearly 43% of the typical retiree’s Social Security check, leaving little room for food, healthcare, or transportation.

Life for retirees in Vermont

Vermont is celebrated for its scenic landscapes, small-town charm, and quality of life. But those perks come at a steep cost for retirees. Property taxes are among the highest in the nation, and utility bills climb during the state’s long, cold winters. Home insurance costs also trend higher due to weather-related risks, further compounding monthly housing expenses.

Still, for seniors with additional retirement savings or pensions, Vermont remains an attractive destination, particularly for those who value its outdoor recreation and community-oriented lifestyle. But for the nearly 22 million Americans who live on Social Security alone, according to a June 2025 study from The Senior Citizens League, Vermont poses a significant challenge.

Vermont compared to the rest of the nation

Nationally, retirees relying solely on Social Security already struggle, facing an average shortfall of $2,762 annually, or about $230 per month. Vermont’s deficit of $8,088 stands out as the worst in the country, more than triple the national average.

Compared to other deficit states, Vermont’s gap is extreme. New Jersey follows with a $7,512 annual shortfall, and Massachusetts isn’t far behind at $7,345. In each case, high housing costs drive the budget imbalance. But Vermont tops them all, reflecting both high costs and relatively modest Social Security benefit levels.

The outlook for retirees on Social Security

As we've seen, for retirees without additional income sources, the state’s high costs all but guarantee financial strain.

And the challenge may only grow. If Congress fails to shore up Social Security, benefits could be reduced to about 77% of their current levels by 2033. For Vermont retirees, that would expand today’s $8,088 annual shortfall into a staggering deficit of more than $12,000 per year.

Vermont’s natural beauty and quality of life may be undeniable, but for retirees living solely on Social Security—even without a mortgage—the financial reality is harsh.

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