Good news for retirees living in these states

Receiving Social Security benefits is essential for millions of retirees and other beneficiaries who rely on these payments as their main source of income. Every month, the Social Security Administration (SSA) delivers benefits to more than 50 million retired workers in the country, so they can have enough money to cover their living expenses and enjoy retirement after having worked for more than 35 years. To be eligible to receive retirement benefits, candidates should first meet several requirements, such as claiming benefits according to the full retirement age (FRA) guidelines, demonstrating enough working history, and earning Social Security credits. Additionally, the SSA will evaluate the average contributions made to the system over the last 35 years. 

How are Social Security benefits computed?

A complicated formula is used to determine how much a taxpayer earned when working and when they claimed benefits to determine Social Security benefits. Monthly benefits are often calculated based on “average indexed monthly earnings.” This average represents up to 35 years of a worker’s indexed earnings. We use a formula with this average to calculate the primary insurance amount (PIA). The PIA serves as the foundation for benefits provided to retirees. The procedure for calculating the PIA considers changes in general salary levels as determined by the national average wage index.

Afterward, Social Security will use the average indexed monthly earnings (AIME), which is known as a method used to calculate an injured worker’s benefit by adjusting his earnings to reflect changes in wage levels during his years of employment. This ensures that future benefits reflect the overall increase in the worker’s standard of living. Up to 35 years of earnings are needed to calculate AIME. The most highly indexed years are selected, summed, and divided by the total number of months in those years. 

Finally, the PIA, which is the sum of three different percentages of different AIME segments, is used by the federal agency. Although the percentages of the PIA formula are set by law, the dollar amounts of the formula fluctuate annually following changes in the National Average Wage Index. These dollar amounts, known as “bend points,” control the amounts of the AIME. For workers who become eligible in 2024, the bend points in the PIA calculation for that year ($1,174 and $7,078) apply. Thanks to this process, the SSA can determine retirees’ payment amounts. For example, as of January 2024, on average, retirees can receive up to $1,900, while the maximum payment can reach up to $4,873.

The list of states where retirees receive more Social Security benefits 

To identify which states received the most Social Security this year information from GOBankingRates data regarding total Social Security benefits paid per state, along with the number of retirees. It is important to note that the information analyzed only includes recipients from the retirement, survivor, and disability insurance (RSDI) program. Learn more about the top 10 states where retirees receive more Social Security benefits here: 

California

• Total Social Security benefits received: $10.4 billion
• Total Recipients: 6,251,295

Florida

• Total Social Security benefits received:  $8.5 billion
• Total Recipients: 4,986,213

Texas

• Total Social Security benefits received: $7.5 billion
• Total Recipients: 4,568,465

New York

• Total Social Security benefits received: $6.44 billion
• Total Recipients: 3,710,827

Pennsylvania

• Total Social Security benefits received: $5.1 billion
• Total Recipients: 2,898,240

Michigan

• Total Social Security benefits received: $4.01 billion
• Total Recipients: 2,269,413

Ohio

• Total Social Security benefits received: $3.99 billion
• Total Recipients: 2,427,966

Illinois

• Total Social Security benefits received: $3.99 billion
• Total Recipients: 2,285,265

North Carolina

• Total Social Security benefits received: $3.8 billion
• Total Recipients: 2,234,888

Georgia

• Total Social Security benefits received: $3.21 billion
• Total Recipients: 1,945,822