Retirees in These 10 Cities Collect Highest Social Security

Retirement Income Analysis Reveals Geographic Disparities Across America

Recent data analysis has identified significant variations in retirement income across major U.S. metropolitan areas, with Social Security benefits playing a crucial role in these financial differences. Carlsbad, California leads the nation with retirees receiving an average annual income of $85,442. This finding emerges from SmartAsset’s comprehensive examination of Census Bureau data covering 344 of America’s largest cities.

The study examined two primary retirement income sources: Social Security benefits and retirement account withdrawals. While Social Security provides essential financial support for most retirees, the data reveals substantial differences in how these income streams combine across different locations.

According to 2024 Gallup polling data, 58% of retirees identify Social Security as a major income source. However, the average Social Security benefits for Americans in 2025 amount to approximately $24,000 annually. This amount alone proves insufficient for comprehensive retirement financial security in most areas.

Consequently, personal savings and retirement account distributions become critical factors in determining overall retirement income adequacy. The data demonstrates that retirement account withdrawals significantly influence the total income picture for retirees in high-income areas.

Geographic Distribution of Highest Social Security and Retirement Income

The following cities represent the top ten locations for retirement income in America, showcasing how Social Security income by city varies significantly:

1. Carlsbad, California

• Retirement account income: $56,685
• Social Security income: $28,757
• Combined total: $85,442

2. Bellevue, Washington

• Retirement account income: $55,346
• Social Security income: $29,715
• Combined total: $85,061

3. Naperville, Illinois

• Retirement account income: $54,134
• Social Security income: $30,921
• Combined total: $85,055

4. Arlington, Virginia

• Retirement account income: $55,856
• Social Security income: $26,396
• Combined total: $82,252

5. Sugar Land, Texas

• Retirement account income: $52,946
• Social Security income: $27,955
• Combined total: $80,901

6. Norman, Oklahoma

• Retirement account income: $55,056
• Social Security income: $25,121
• Combined total: $80,177

7. Alexandria, Virginia

• Retirement account income: $53,697
• Social Security income: $25,576
• Combined total: $79,273

8. The Woodlands, Texas

• Retirement account income: $47,281
• Social Security income: $31,752
• Combined total: $79,033

9. Boulder, Colorado

• Retirement account income: $50,280
• Social Security income: $27,906
• Combined total: $78,186

10. Carrollton, Texas

• Retirement account income: $54,319
• Social Security income: $23,602
• Combined total: $77,921

Economic Factors Influencing Social Security and Retirement Income Distribution

The correlation between career earnings and retirement income explains these geographic patterns. Higher lifetime earnings directly impact Social Security benefit calculation, though maximum benefit caps apply. Additionally, individuals with higher career incomes typically accumulate larger retirement savings balances.

The data reveals a clear pattern regarding income composition among the best cities for retirees. In cities with the highest retirement incomes, Social Security benefits represent approximately 30% to 40% of total retirement income. In contrast, lower-income retirement areas show Social Security comprising more than half of total retirement income in only 19 cities analyzed.

Social Security benefit variations across cities remain relatively modest compared to retirement account distributions. The lowest average annual benefit recorded was $15,421 in Hartford, Connecticut. Meanwhile, The Woodlands, Texas reported the highest average at $31,752. However, retirement account withdrawals demonstrate significantly greater variation, ranging from $16,282 annually in Allentown, Pennsylvania, to $56,685 in Carlsbad.

Social Security Benefit Calculation and Maximization Strategies

Multiple variables determine individual Social Security benefit amounts through a complex calculation process. These calculations consider:

• Total working years
• Lifetime Social Security tax contributions
• Birth year
• Benefit claiming age

Each factor plays a crucial role in determining final benefit amounts and understanding how to maximize Social Security benefits.

Claiming benefits before full retirement age results in permanently reduced payments. For individuals born in 1960 or later, full retirement age is 67. Early claiming creates lasting financial implications that extend throughout retirement.

Retirement account access follows different rules than Social Security. Tax-deferred accounts such as 401(k) plans allow penalty-free withdrawals beginning at age 59½. However, required minimum distributions begin at age 73, mandating annual withdrawals regardless of financial need.

Retirement Planning and Cost-of-Living Considerations

Retirement financial requirements vary substantially based on geographic location and lifestyle expectations. GOBankingRates’ 2024 analysis indicates comfortable retirement costs range from $61,000 annually in Mississippi to over $129,000 yearly in Hawaii, with Social Security payments helping offset these expenses differently across regions.

Financial planning professionals frequently reference the 4% withdrawal rule as a baseline retirement income strategy. This approach suggests withdrawing 4% of total retirement savings in the first year, with subsequent adjustments for inflation. The methodology assumes a 30-year retirement duration.

Using this framework, a Carlsbad retiree withdrawing $56,685 annually would require approximately $1.4 million in invested assets. This substantial requirement illustrates why these cities achieve the highest retirement income levels beyond Social Security alone.

Key Retirement Planning Factors

• Location choice and cost-of-living adjustments
• Expected retirement duration
• Planned activities and lifestyle preferences
• Healthcare costs and insurance needs

Some retirees maintain comfortable lifestyles on $50,000 annually when combined with Social Security, while others require double that amount depending on their chosen location and lifestyle.

Therefore, early retirement planning and realistic goal-setting prove essential for maximizing both Social Security benefits and personal savings. Whether targeting high-income retirement locations or more modest alternatives, understanding these income patterns provides valuable guidance for developing appropriate retirement income strategies that complement Social Security payments effectively.