15 States Where Social Security Survivor Benefits Leave Biggest Gap

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When a spouse in an American family dies, the loss of that person’s income can be a life-changing stressor on top of the immediate effects of their death, particularly in a household with underage children.

Researchers at ValuePenguin, the research arm of LendingTree, looked at where Social Security survivors benefits fall short, and found that average monthly Social Security benefits are not sufficient to cover the average earnings of a full-time, year-round worker in any state.

This is despite the fact that survivors benefits are calculated based on the earnings of the deceased spouse.

The average Social Security benefits for a surviving parent and two children cover only 49.2% of the average earnings for a full-time, year-round worker, leaving a monthly deficit of $3,183.

“Inflation and changes in the cost of living have eaten away at Social Security benefits,” ValuePenguin life insurance expert Nick VinZant said in a statement. “Over the last 22 years, Social Security as a whole has lost 40% of its buying power.”

Advocates for retirees argue that Social Security’s annual cost-of-living adjustments do not keep up with the costs faced by older adults.

According to ValuePenguin, life insurance may be a viable security measure for a family at a time when Social Security benefits fall so short. But many do not consider the steep monthly fee worthwhile.

Another ValuePenguin analysis on life insurance costs found that the average 20-year term life insurance policy costs about $147 a month. And 36% of those who do not have life insurance think it is too expensive an investment, according to a ValuePenguin survey.

ValuePenguin noted, however, that the average 20-year term life insurance policy provides a death benefit of $500,000 for surviving family members. Given that payout, which is arguably much better than average Social Security survivors benefits, the cost can be worth it, according to VinZant.

ValuePenguin’s study of the 50 states showed that a sizable difference in the shortfall exists between those with the highest and lowest average survivor benefits.

In looking at state data, which includes both surviving parents of the deceased and the widow or widower, researchers used only surviving spouses with children in care for their analysis.

To correct for this discrepancy at the state level, they first divided the nationally available average monthly benefit in December 2021 for young surviving spouses with a child in care by the national average for all adult survivors of the deceased who receive benefits, and then multiplied that result to each state’s average of benefits to all adult survivors.

Earnings data came from the U.S. Census Bureau 2021 American Community Survey with one-year estimates, which were the last available. Social Security data came from the Social Security Administration.

See the gallery for the 15 states with the lowest percentage of earnings covered by survivor benefits.

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