You Can Live Well in South Carolina on Just Your Social Security, If You’ve Paid Off Your Mortgage

For retirees in South Carolina, Social Security benefits can go further than in most of the country—provided the mortgage is already paid off.

According to a Realtor.com® analysis of median Social Security benefits by state and the Elder Economic Security Standard Index, the Palmetto State is among the 10 places nationwide where benefits alone are enough to cover essential living costs.

But what happens if for some reason the benefit is cut off?

Housing costs keep budgets balanced in South Carolina

Seniors in South Carolina enjoy an annual surplus of $828, or about $69 per month, after meeting all their basic expenses.

Retirees face average monthly living costs of $1,860, with housing expenses of just $486 per month once the mortgage is cleared. Against those costs, the state’s median monthly Social Security benefit of $1,929 leaves them with modest but meaningful breathing room.

The key factor behind South Carolina’s inclusion in the surplus list is its relatively modest housing burden. Retirees’ housing costs hover under $500 a month, far below the nearly $1,000 to $1,300 averages seen in deficit states such as New York, New Jersey, and Massachusetts.

That lower cost translates into housing consuming just over a quarter of retirees’ total budgets, keeping them under the 30% federal affordability guideline. This balance helps make Social Security alone viable in South Carolina, even though the margin is slimmer than in Delaware or Indiana, who topped the list.

The appeal beyond the price

South Carolina’s affordability is just part of its appeal. The state has long attracted retirees from the Northeast and Midwest, drawn by its warmer climate, lower taxes, and scenic coastal communities. Popular destinations such as Charleston, Myrtle Beach, and Hilton Head offer lifestyle amenities alongside relatively affordable housing, particularly compared to coastal markets in Florida or the Northeast.

Property taxes in South Carolina are among the lowest in the nation from primary homeowners, further reducing retirees’ fixed housing costs. Even in growing metro areas like Greenville and Columbia, expenses remain manageable, especially for those with homes purchased years ago at lower prices.

That said, retirees considering a move should note that insurance premiums in hurricane-prone coastal areas can climb quickly, potentially narrowing the affordability gap.

National comparison

Nationally, the typical retiree faces an annual shortfall of $2,762, or about $230 per month, even after mortgage debt is eliminated. That makes South Carolina’s $828 surplus significant, even if it isn’t the largest.

Delaware tops the list with a surplus of $1,764, while Indiana and Arizona also surpass South Carolina’s margin with $1,392 and $1,224, respectively. At the other end of the surplus spectrum, Michigan barely breaks even, leaving retirees with only $132 annually. South Carolina sits comfortably in the middle, offering a workable balance.

The outlook for retirees in South Carolina

While South Carolina’s affordability makes it a standout today, the cushion is relatively thin. Even without a mortgage, retirees must budget for property taxes, insurance, utilities, and maintenance, and these costs have been climbing nationwide. For retirees living solely on Social Security, even small increases in these bills could erase the current surplus.

Adding to the uncertainty, Social Security itself faces long-term solvency challenges. Without reform, benefits could be reduced by as much as 23% starting in 2033, which would flip South Carolina’s current $828 annual surplus into a deficit.

Still, South Carolina continues to offer a rare combination of manageable housing costs, low property taxes, and a retiree-friendly climate. For those who have already paid off their mortgage, the Palmetto State remains one of the few places in the U.S. where Social Security alone can reliably cover the cost of aging in place.

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