New Year's is a time of optimism, but older Americans don't have as much to look forward to in 2021. They're getting a paltry 1.3% increase to their Social Security benefits — the second-lowest annual raise in the program's history.

Most retirees rely on Social Security for at least half their income, according to federal data, but it's not a lot of money. Monthly payments will average $1,543 nationwide in 2021, just $20 more than before.

And as usual, benefits will be more generous in some states than others. Here's how all 50 states and the District of Columbia rank for Social Security in 2021, going from the smallest average annual payout to the largest.

No matter how much you receive, be sure to deposit the money in a high-interest savings account to squeeze all the value out of it you can.

Our methodology: We used the most current Social Security data to calculate 2019 benefits for the average retired worker in each state, then added 1.6% to determine the 2020 payouts. To those amounts, we added another 1.3% to come up with the typical benefits in each state in 2021.

51. Louisiana

Average annual benefit in 2021: $17,284

According to the Social Security Administration's most current information, 559,820 Louisiana retirees are beneficiaries.

We calculate that they got an average $1421.83 a month in 2020, and $17,061.98 for the year. That's the lowest among the 50 states and the District of Columbia.

With a 1.3% cost of living adjustment (COLA) for next year, Louisiana Social Security recipients will get $1,440.32 per month.

50. Mississippi

Average annual benefit in 2021: $17,348

Social Security officials say 429,412 retired workers in Mississippi are receiving benefits. We calculate that they got an average $1,427.13 per month in 2020, and $17,125.62 for the year.

Across the U.S., about 1 in 5 elderly married couples on Social Security and nearly half of unmarried seniors rely on their benefits for at least 90% of their income, the Social Security Administration says.

According to our math, the Mississippians next year will receive $1,445.69 per month.

49. Maine

Average annual benefit in 2021: $17,465

Social Security says 242,442 retired workers in Maine are collecting benefits. We calculate that they got an average $1,436.75 a month in 2020 — or $17,241.00 for the full year.

Around 90% of Americans 65 or older receive Social Security benefits. Some choose to wait until they turn 70, the age at which you receive your maximum possible benefit.

We estimate that the retirees in Maine next year will receive $1,455.43 per month.

48. New Mexico

Average annual benefit in 2021: $17,516

In New Mexico — one of 13 states that tax Social Security, according to AARP — 307,967 retirees get benefits. Our calculations say the payments in 2020 averaged $1,440.92 a month and $17,291.06 per year.

For help stretching your retirement income and savings as far as possible, consider signing up with a financial planning service. In a 30-minute call, you can talk goals, priorities and figure out how to move forward.

After next year's 1.3% raise, New Mexico's Social Security recipients will get $1,459.65 per month.

47. Arkansas

Average annual benefit in 2021: $17,589

In Arkansas, 450,419 retirees are on Social Security, and they collected benefits that averaged $1,446.90 per month in 2020 and $17,362.82 for the entire year, according to our calculations.

The benefits program got its start in 1935, when President Franklin Roosevelt signed the Social Security Act into law.

Retired workers in Arkansas stand to receive $1,465.71 per month next year.

46. Montana

Average annual benefit in 2021: $17,623.15

According to the Social Security Administration's most current information, 178,102 Montana retirees are beneficiaries. Our math shows they got an average $1,449.75 a month in 2020, or $17396.99 per year.

Montana also is among the 13 states that tax Social Security benefits, says AARP.

We calculate that the seniors in Montana next year will receive $1,468.60 per month.

45. Kentucky

Average annual benefit in 2021: $17,676

In Kentucky, 618,077 retirees take Social Security that worked out to an average 2020 benefit of $1,454.10 per month and $17,449.17 for the full year.

On Jan. 31, 1940, the first monthly Social Security check was issued to Ida May Fuller, a retired legal secretary in Ludlow, Vermont. She received $22.54, which is equivalent to $421.48 in today's dollars.

Retirees in Kentucky next year will receive $1,473.00 per month, according to our math.

One way to clear debt and build up your retirement fund is to refinance your mortgage, if you're a homeowner. Mortgage rates are the lowest in history, and a refi might easily save you hundreds of dollars a month.

44. South Dakota

Average annual benefit in 2021: $17,788

The Social Security Administration says 137,577 retired workers in South Dakota get benefits. We calculate that the payments in 2020 averaged $1,463.31 a month and $17,559.68 per year.

During her lifetime, Ida May Fuller — the first Social Security recipient — collected benefits totaling about $22,889.

After next year's raise of 1.3%, South Dakota's Social Security recipients will get $1,482.33 per month.

43. Alaska

Average annual benefit in 2021: $17,810

Officials say 75,412 Alaska retirees are on Social Security, and — according to our calculations — they got $1,465.14 per month in 2020, or $17,581.66 for the entire year.

Like every other resident of Alaska, a retiree also receives an annual payment from the state's oil wealth fund. The amount for 2020 was $992.

Alaska's retired workers on Social Security stand to receive $1,484.18 per month next year.

You might drum up more money for your retirement by shrinking the cost of your homeowners insurance, if you own a home. Compare rates from multiple insurers to see if you need to switch.

42. North Dakota

Average annual benefit in 2021: $17,899

In North Dakota, 99,735 retirees collected benefits that averaged $1,472.45 per month in 2020 and $17,669.38 for the year.

North Dakota is another of the 13 states that collect taxes on Social Security benefits, AARP says.

We calculate that the state's retired workers next year will receive $1,491.59 per month.

41. Oklahoma

Average annual benefit in 2021: $18,097

In Oklahoma, 537,909 retirees got Social Security benefits that averaged $1,488.74 a month in 2020, or $17,864.89 for the year.

Paltry Social Security benefits are a reason working Americans need to save more — like through 401(k) plans offered by employers.

The seniors in Oklahoma next year will receive $1,508.09 per month, according to our calculations.

40. Nevada

Average annual benefit in 2021: $18,123

In Nevada, 413,107 retirees are on Social Security, and we calculate that they received an average $1,490.89 per month in 2020, which works out to an annual income of $17,890.71.

Social Security accounts for about a third of the income of the elderly, officials with the program say.

With a raise next year of 1.3%, Nevada's Social Security recipients will get $1,510.27 per month.

39. District of Columbia

Average annual benefit in 2021: $18,127

In the District of Columbia, 58,903 retirees collected benefits that averaged $1,491.24 per month in 2020 or $17,894.83 over the course of the year.

An American can claim Social Security as early as age 62, but if you don't wait your monthly payment will be permanently reduced by up to 30%.

Retired workers in D.C. stand to receive $1,510.62 per month next year.

38. Texas

Average annual benefit in 2021: $18,183

In Texas, 2.95 million retirees are drawing Social Security benefits. We calculate that 2020's average payout in the Lone Star State was $1,495.80 per month and $17,949.64 for all of 2020.

Money from an IRA, or individual retirement account, can help you make ends meet in retirement — but you need to start saving as early as you can.

With next year's 1.3% raise added in, Texas Social Security recipients will get $1,515.25 per month.

37. West Virginia

Average annual benefit in 2021: $18,191

Social Security says 292,653 retired workers in West Virginia collect benefits from the program. In 2020, the state average was $1,496.44 and $17,957.24 for the year.

West Virginia is another of the 13 states that collect taxes on Social Security, AARP says.

According to our math, West Virginia seniors next year will receive $1,515.89 per month.

36. California

Average annual benefit in 2021: $18,191

In America's most populous state, 4.44 million retirees received Social Security payments averaging $1,496.45 a month in 2020 or $17,957.45 for the full year.

The number of older people on Social Security in California is greater than the entire populations of almost half the states.

Retired workers in the Golden State stand to receive $1,515.91 per month next year.

35. Idaho

Average annual benefit in 2021: $18,199

In Idaho, 259,909 retirees are on Social Security, and we calculate that they got $1,497.11 a month in 2020, or $17,965.34 for the full year.

Some U.S. seniors are lucky enough to have employer-based pensions that provide additional retirement income, though those have become rare.

After next year's 1.3% raise, Idaho's Social Security recipients will get $1,516.57 per month.

34. Alabama

Average annual benefit in 2021: $18,203

The Social Security Administration says 731,111 retirees in Alabama collect benefits that, according to our calculations, averaged $1,497.43 per month in 2020, or $17,969.13 annually.

Half of elderly retired couples in the U.S. and 70% of single retirees derive 50% or more of their income from Social Security, officials with the program say.

Retired workers in Alabama should be on the receiving end of $1,516.89 per month next year.

33. Georgia

Average annual benefit in 2021: $18,225

In Georgia, 1.29 million seniors receive Social Security benefits that averaged $1,499.23 a month in 2020, or $17,990.73 for the year.

Without a decent stream of income in retirement, it can be easy to fall deep into debt. If you're struggling with credit card bills each month, a debt consolidation loan can help take that weight off your shoulders.

We calculate that Georgia's retired workers will receive $1,518.72 per month next year.

32. Ohio

Average annual benefit in 2021: $18,240

In Ohio, 1.62 million retirees collect benefits, and we calculate that their payments in 2020 averaged $1,500.46 a month and $18,005.50 for the full year.

During June 2020, some 45.8 million retired workers across the U.S. were receiving Social Security payments, officials say.

Factoring in the raise for next year of 1.3%, Ohio's Social Security recipients will get $1,519.96 per month.

31. Missouri

Average annual benefit in 2021: $18,259

In Missouri, 897,621 retirees are getting Social Security payments that averaged $1,502.10 per month in 2020, or $18,025.14 for the year.

Missouri also is among the 13 states that tax the Social Security benefits of at least some retirees, according to AARP.

According to our math, seniors in the Show Me State next year will receive $1,521.62 per month.

30. Tennessee

Average annual benefit in 2021: $18,415

The Social Security Administration says 995,471 retirees in Tennessee collect benefits that, according to our calculations, averaged $1,514.88 per month in 2020, or $18,178.54 annually.

Investment income, maybe through an automated investing service or "robo-advisor," can help retirees stretch their money.

Retired Tennesseeans next year will receive $1,534.57 per month, according to our calculations.

29. Florida

Average annual benefit in 2021: $18,449

In Florida — often considered America's retirement capital — some 3.51 million retirees are getting Social Security benefits.

According to our calculations, they collected $1,517.69 a month in 2020, and their annual income from the program was $18,212.30.

The seniors soaking up the sun in the Sunshine State stand to receive $1,537.42 per month next year.

28. Hawaii

Average annual benefit in 2021: $18,485

In Hawaii — one of the best states for retirement — 218,219 seniors receive retirement benefits from Uncle Sam.

We calculate that they got an average $1,520.65 per month in 2020, and $18,247.86 in annual income from Social Security.

With next year's 1.3% raise, Hawaii's Social Security recipients will get $1,540.42 per month.

27. North Carolina

Average annual benefit in 2021: $18,577

In North Carolina, 1,526,249 retired workers receive benefits that in 2020 averaged $1,528.19 per month and $18,338.34 for the year.

Americans are living longer and must rely on Social Security for longer periods. In 1940, a 65-year-old was expected to live almost 14 years, the Social Security Administration says. Today, that life expectancy is more than 20 years.

Our calculations find that North Carolina seniors next year will receive $1,548.06 per month.

26. Oregon

Average annual benefit in 2021: $18,622

Oregon has 998,643 retired workers on Social Security, federal numbers show.

In 2020, their benefits averaged $1,531.92 per month and $18,383 for the full year.

According to our math, seniors in the Beaver State next year will receive $1,551.84 per month.

Would living on that amount be a stretch for you? Look for ways to save more money every month, starting with a lower price on your car insurance.

25. Iowa

Average annual benefit in 2021: $18,665

In Iowa, 482,117 retirees collect benefits, according to the Social Security Administration.

They received $1,535.46 per month from the program and an annual income of $18,425.48 for 2020, by our calculations.

Adding next year's 1.3% raise, Iowa's Social Security recipients will get $1,555.42 per month.

24. Nebraska

Average annual benefit in 2021: $18,698

In Nebraska, 257,481 retirees collect benefits that in 2020 averaged $1,538.18 per month and $18,458.11 for the whole year, according to our math.

Nebraska is another of the 13 states that tax the Social Security benefits of at least some retirees, AARP says.

Retired workers in the Cornhusker State stand to receive $1,558.17 per month next year.

Since Social Security isn't enough for a comfortable retirement, investing is key for building up your nest egg. One popular investing app lets you get started with as little as $1, and never charges commissions or trading fees.

23. South Carolina

Average annual benefit in 2021: $18,760

In South Carolina, 828,566 retirees get Social Security benefits, according to goverment data.

We calculate that they received an average $1,543.28 a month in 2020, or $18,519.36 for the full year.

With next year's raise of 1.3%, South Carolina Social Security recipients will get $1,563.34 per month.

22. Colorado

Average annual benefit in 2021: $18,785

Colorado has 665,194 retirees on Social Security, and their benefits in 2020 averaged $1545.31 per month, or $18,543.68 on an annual basis.

The Centennial State also is one of the 13 states that collect taxes on Social Security benefits, AARP says.

Our math indicates that Colorado seniors next year will receive $1,565.40 per month.

Need to save more for retirement? That often comes down to spending less right now. A free browser extension can cut your bills from online shopping by showing you the lowest price every time.

21. Vermont

Average annual benefit in 2021: $18,862

In Vermont, 109,498 retirees collect Social Security benefits that in 2020 averaged $1,551.65 per week, or $18,619.81 for the full year, according to our calculations.

Vermont is yet another of the 13 states that collect taxes on Social Security benefits, AARP says.

Retired workers in the Green Mountain State stand to receive $1,571.82 per month next year.

20. Wyoming

Average annual benefit in 2021: $18,912

In this sparsely populated state, 85,085 collect Social Security benefits, according to the program's data.

We calculate that they typically received $1,555.76 monthly in 2020, or $18,669.09 over the course of the year.

Factoring in a raise next year of 1.3%, Wyoming's Social Security recipients will get $1,575.98 per month.

Before you retire, you might beef up your savings by taking on a side gig that puts your talents to work. An online freelance marketplace can help you find someone eager to pay for your skills.

19. Illinois

Average annual benefit in 2021: $18,924

The Social Security Administration says in Illinois, 1.63 million retired workers are collecting benefits.

They got an average $1,556.74 per month in 2020, or annual income from the program of $18,680.83, according to our math.

With a 1.3% raise for next year, Illinois seniors will receive $1,576.97 a month.

18. Arizona

Average annual benefit in 2021: $18,960

In Arizona — another state that draws large numbers of retirees — 1.04 million retired workers are on Social Security.

We calculate that they received $1,559.72 a month, on average, in 2020, and an annual income of $18,716.66.

Retired workers in the Grand Canyon State stand to receive $1,579.00 per month next year.

17. Rhode Island

Average annual benefit in 2021: $19,023

In Rhode Island, 160,706 retirees collect benefits that in 2020 averaged $1,564.92 a month or $18,779.08 for the full year.

The Ocean State is another of the 13 states that tax Social Security benefits, according to AARP.

According to our math, Rhode Island seniors next year will receive $1,585.27 per month.

16. Wisconsin

Average annual benefit in 2021: $19,079

In Wisconsin, 923,461 retired workers take Social Security.

By our calculations, they received an average $1,569.55 a month in 2020, or an annual income from the program of $18,834.60.

With next year's 1.3% raise, Wisconsin's Social Security recipients will get $1,589.95 per month.

You might put aside more money for your retirement with help from an app that invests your spare change by rounding up your everyday purchases.

15. Utah

Average annual benefit in 2021: $19,128

In Utah, 296,554 retirees collect benefits that averaged $1,573.53 per month and $18,882.40 for all of 2020.

Utah is yet another of the 13 states that levy state taxes on Social Security benefits, AARP says.

According to our math, seniors in the Beehive State next year will receive $1,593.99 per month.

14. Virginia

Average annual benefit in 2021: $19,185

The Social Security Administration's data shows 1.11 million Virginia seniors are receiving benefits.

We calculate that they got $1,578.22 per month in 2020, and $18,938.68 for the full year.

Adding in a raise next year of 1.3%, Virginia's Social Security recipients will get $1,598.74 per month.

13. New York

Average annual benefit in 2021: $19,192

In New York, 2.6 million retirees collect benefits that averaged $1,578.79 a month in 2020, or $18,945.49 for the full year.

The first official Social Security number was 055-09-0001 — issued in 1936 to 23-year-old John Sweeney Jr. of New Rochelle, New York.

Our math indicates that seniors in the Empire State next year will receive $1,599.32 per month.

12. Kansas

Average annual benefit in 2021: $19,229

In Kansas, 402,018 retirees collect benefits that averaged $1,581.88 a month in 2020 and $18,982.61 for the year as a whole.

Kansas also is among the 13 states that collect taxes on some Social Security benefits, according to AARP.

According to our calculations, seniors in the Sunflower State next year will receive $1,602.45 per month.

11. Massachusetts

Average annual benefit in 2021: $19,234

In Massachusetts, 901,679 retirees are drawing benefits from Social Security.

We calculate that they got an average $1,582.27 per month in 2020, or $18,987.19 for the year.

After next year's 1.3% raise, the Bay State's Social Security recipients will get $1,602.84 per month.

10. Pennsylvania

Average annual benefit in 2021: $19,246

In Pennsylvania, 2.01 million retirees collect Social Security benefits, according to the latest government data.

In 2020, they got an average $1,583.23 per month from the system and $18,998.77 over the course of the full year.

We calculate that seniors in the Keystone State next year will receive $1,603.81 per month.

9. Indiana

Average annual benefit in 2021: $19,293

In Indiana, 946,375 retirees are on Social Security and got an average $1,587.15 per month in 2020 and $19,045.83 for the full year, according to our calculations.

That's not a lot to live on, which is why it's so vital to put money away during your working years so you'll have savings to fall back on in retirement.

Adding in next year's Social Security raise of 1.3%, Indiana beneficiaries will get $1,607.79 per month, on average.

8. Minnesota

Average annual benefit in 2021: $19,380

In Minnesota, 784,382 seniors collect Social Security benefits that in 2020 averaged out to $1,594.25 per month and $19,131.00 for the full year.

Minnesota is another of the 13 states that collect state income tax on Social Security benefits, AARP says.

Our math finds that seniors in the North Star State next year will typically receive $1,614.98 per month.

7. Washington

Average annual benefit in 2021: $19,548

Washington has 1.01 million retirees who are on Social Security. It's one of 14 states with over 1 million beneficiaries.

We calculate that Washingtonians received monthly payments averaging $1,608.13 in 2020, and an annual income of $19,297.61.

Retired workers in the Evergreen State stand to receive $1,629.04 per month next year.

6. Michigan

Average annual benefit in 2021: $19,649

In Michigan, 1.54 million retired workers are receiving benefits from Social Security.

They got an average $1,616.43 per month from the program and an annual income of $19,397.18, according to our calculations.

After next year's 1.3% raise, the Great Lake State's Social Security recipients will get $1,637.44 per month.

5. Maryland

Average annual benefit in 2021: $19,746

In Maryland, the state where the Social Security Administration is headquartered (in the Baltimore suburb of Woodlawn), 742,552 retirees collect benefits that in 2020 averaged $1,624.37 a month and $19,492.47 for the full year.

Despite the relatively high payouts here, there are plenty of other reasons you probably wouldn't want to retire in Maryland.

According to our calculations, seniors in the Old Line State next year will receive $1,645.49 per month.

4. New Hampshire

Average annual benefit in 2021: $19,990

In this New England state, 220,989 collect benefits that in 2020 averaged $1,644.42 per month and $19,733.04 for the year.

The lowest Social Security number ever issued was given to Grace Owen of Concord, New Hampshire, in 1936. It was: 001-01-0001.

By our math, seniors in the Granite State next year will receive $1,665.80 per month .

3. Delaware

Average annual benefit in 2021: $20,164

In Delaware, 162,952 older people are on Social Security, according to the agency's data.

We calculate that they got an average $1,658.79 per month in 2020 and a typical annual benefit of $19,905.45.

Factoring in next year's Social Security raise of 1.3%, Delaware beneficiaries will get $1,607.79 per month.

2. Connecticut

Average annual benefit in 2021: $20,486

In Connecticut, 512,703 retirees are taking Social Security. We calculate that they received an average $1,685.29 per month and $20,223.45 for the full year.

Connecticut is the last of the 13 states that collect taxes on Social Security benefits, AARP says.

Retired workers in the Nutmeg State stand to receive an average $1,707.20 per month next year.

1. New Jersey

Average annual benefit in 2021: $20,537

The Garden State is where 1.21 million older people receive the largest average Social Security payments: $1,689.42 per month in 2020, or $20,273.09 for the full year, by our calculations.

Let's be honest: $20,273 isn't much of an income. You'll want to buy life insurance to ensure your loved ones aren't burdened by more than grief once you're gone. Today, it's very easy to compare policies and get the best possible rate.

After the 2021 raise of 1.3%, New Jersey Social Security recipients typically will receive $1,711.39 per month.