You Can Live Well in Michigan on Just Your Social Security, If You've Paid Off Your Mortgage

"Michigan squeaks onto the list of states where retirees can technically live on Social Security alone-if they've already paid off their mortgage. According to a Realtor.com® analysis of median Social Security benefits by state and the Elder Economic Security Standard Index, the typical retiree in Michigan has an annual surplus of just $132, or about $11 per month, after covering essential living costs."

"The data shows just how tight the balance is in Michigan. Retirees face average monthly expenses of $2,056, with housing costs around $531 per month. Against those expenses, the state's median Social Security benefit of $2,067 per month barely clears the line, leaving seniors with a cushion so small that even minor budget changes could erase it. Article continues below this ad And yet, Michigan's non-mortgage housing expenses are modest compared to what we would call "shortfall" states, but they still sit slightly higher than in other "surplus" states like West Virginia ($398) or Alabama ($419)."

"Michigan has long appealed to retirees seeking affordability and access to natural beauty. The state offers a mix of options: cities like Grand Rapids and Ann Arbor provide cultural and healthcare amenities, while smaller towns and rural communities along the Great Lakes deliver quieter, lower-cost lifestyles. Now, property taxes in Michigan are higher than in some other surplus states, which pushes monthly housing expenses upward. Utility costs, especially in northern parts of the state, can also strain budgets during cold winters. These regional challenges help explain why Michigan's surplus is the smallest in the country."

Michigan retirees who have paid off their mortgage have a median Social Security income of $2,067 per month and face average monthly expenses of $2,056, yielding an annual surplus of $132. Housing costs average about $531 per month and non-mortgage housing expenses are slightly higher than in other surplus states. Property taxes and winter utility costs push housing-related spending upward in many regions. Cities like Grand Rapids and Ann Arbor offer amenities and healthcare access, while smaller Great Lakes communities provide lower-cost, quieter living. The surplus remains fragile and vulnerable to small budget changes.

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