NASHVILLE, TN – Rural families and older farm operators may need to look beyond Social Security as living costs continue to pressure retirement plans. AARP says benefits stretch further in lower-cost states, but often still fall short of basic expenses.
Social Security replaces about 40 percent of pre-retirement work income on average. Among Americans 65 and older, 42 percent of women and 37 percent of men receive at least half their income from the program.
AARP found benefits went furthest in Indiana, West Virginia, Alabama, and Michigan in 2025. In Indiana, the average monthly benefit covered 87.2 percent of basic expenses.
For rural America, the issue ties directly to farm transition planning. Retired landowners, older producers, and surviving spouses often rely on Social Security alongside land rent, savings, pensions, off-farm income, or farm distributions.
The report notes that no state had average benefits fully covering basic costs for renters or homeowners with a mortgage. Health care, transportation, and housing remain key planning risks.
Farm-Level Takeaway: Farm families should include Social Security in retirement plans, but not treat it as a full replacement for living income.