What is the average retirement income?

The average retirement income in the U.S. for individuals aged 65+ is around $60,000 annually (mean), but the median is lower at approximately $47,000-$56,000, with couples averaging about $100,000. Social Security provides a significant portion, averaging over $2,000 monthly per person, but most retirees need additional savings from pensions, investments, or work to cover expenses, which average over $60,000 for those 65+.

What is a good average monthly retirement income?

A good monthly retirement income is generally considered 70-85% of your pre-retirement income, but it varies by lifestyle, with averages around $4,000-$8,000+ monthly depending on needs, with many experts suggesting replacing about 80% of your final working salary for a comfortable lifestyle, accounting for Social Security, pensions, and savings. 

Is $4000 a month enough to retire on?

$4,000 a month ($48,000/year) can be a good retirement income for a modest lifestyle in low-cost areas, covering basics like housing, food, and healthcare, but it's tight for high-cost locations or a comfortable, travel-inclusive retirement, often requiring a mix with Social Security for a sustainable budget. Whether it's "good" depends heavily on your location (e.g., affordable cities like Cincinnati vs. expensive Hawaii) and spending habits (basic vs. travel/luxury). 

How much money does the average person have when they retire?

The average American retiree (ages 65-74) has around $609,000 in retirement savings, but the median is much lower (around $200,000) because a few high-wealth individuals skew the average; many people, especially in their 50s and 60s, have significantly less, highlighting a gap between the "average" and what most people actually have saved for retirement. 

How much does the average person make when they retire?

The average U.S. retirement income for individuals aged 65+ is around $60,000-$75,000 (mean) or $47,000-$57,000 (median) annually, with couples earning more, but these figures vary significantly by age, location, and sources like Social Security, pensions, and savings, with income generally decreasing as retirees get older. A common guideline suggests needing 80% of your pre-retirement income, but personal needs, lifestyle, and location are crucial factors. 

Average Pension Size by Age: Are you Behind?

How many people have $1,000,000 in retirement savings?

Data from the Federal Reserve's Survey of Consumer Finances, shows that only 4.7% of Americans have at least $1 million saved in retirement-specific accounts such as 401ks and IRAs. Just 1.8% have $2 million, and only 0.8% have saved $3 million or more.

What is a comfortable retirement income?

A comfortable retirement income usually means having 70-80% of your pre-retirement income, but it's personal; for many, this translates to around $4,000 to $8,000+ per month, depending heavily on lifestyle, location (high-cost cities need more), and healthcare needs. A common benchmark is aiming for $5,000-$6,000 monthly for a modest lifestyle or $8,000-$10,000+ for a more robust one, especially if you live in an expensive area or have big travel plans. 

What is the average 401k balance for a 65 year old?

For a 65-year-old, the average 401(k) balance is around $299,000, but the more representative median balance is significantly lower, at about $95,000, indicating many high savers pull the average up, with balances varying greatly by individual savings habits, income, and other retirement accounts. 

What are the biggest retirement mistakes?

The biggest retirement mistakes involve poor planning (starting late, underestimating costs like healthcare/inflation, not having a budget) and bad financial decisions (claiming Social Security too early, taking big investment risks or being too conservative, cashing out accounts, having too much debt). Many also neglect the non-financial aspects, like adjusting lifestyle or planning for longevity, leading to running out of money or feeling unfulfilled. 

What is considered a good retirement nest egg?

Key takeaways. Fidelity's guideline: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. Factors that will impact your personal savings goal include the age you plan to retire and the lifestyle you hope to have in retirement. If you're behind, don't fret.

How much do most couples retire with per month?

For a couple, the average monthly retirement income hovers around $8,300 (or $100,000/year) in 2025, with some sources citing a lower median of about $7,000-$7,500/month, while average Social Security for two could be around $3,900-$4,000, supplemented by savings for a total closer to $5,000-$6,000+ monthly, depending heavily on lifestyle and location. 

What not to do in retirement?

In retirement, avoid overspending, claiming Social Security too early, getting too conservative with investments, isolating yourself socially, neglecting your health, and failing to plan for inflation or medical costs. Also, don't assume work friendships will last, make big financial moves without discussing them with your spouse, or rely on "common knowledge" for financial decisions. 

What are the biggest expenses in retirement?

Major Monthly Expenses in Retirement

1. Housing. Housing remains one of the largest expenses for retirees. ...
2. Healthcare. Right behind housing is healthcare, which only becomes more important as we age. ...
3. Transportation. ...
4. Food and Entertainment.

What is the best age to retire?

“Most studies suggest that people who retire between the ages of 64 and 66 often strike a balance between good physical health and having the freedom to enjoy retirement,” she says. “This period generally comes before the sharp rise in health issues which people see in their late 70s.

What is a livable retirement income?

A common starting point is to estimate that you'll need about 70% to 80% of your pre-retirement income to maintain your standard of living in retirement. For example, if you earn $150,000 annually while working, you might need between $105,000 to $120,000 as a starting point in retirement.

What is the number one regret of retirees?

Among the biggest mistakes retirees make is not adjusting their expenses to their new budget in retirement. Those who have worked for many years need to realize that dining out, clothing and entertainment expenses should be reduced because they are no longer earning the same amount of money as they were while working.

What are the 3 R's of retirement?

The Three R's of Retirement: Resiliency, Resourcefulness & the Renaissance Spirit.

What does Suze Orman say about retirement?

Orman recommended making the most of retirement accounts like 401(k)s and IRAs. She suggested contributing enough to get any employer match, as this is essentially free money. For those closer to retirement, taking advantage of catch-up contributions allowed for individuals over 50 can be a smart move.

How many Americans have $1,000,000 in their 401k?

While the exact number fluctuates, hundreds of thousands of Americans have $1 million in their 401(k), with figures around 500,000 to nearly 900,000 reported by late 2025, representing a small percentage (around 2-3%) of all savers, though a higher portion (9%+) of older workers (55-64) achieve this milestone, showing it's attainable with early, consistent saving. 

What is a good amount to have in your 401(k) when you retire?

This model states that you should aim to save at least 25 times what you expect to spend in your first year of retirement. For example, if you project that your expenses will amount to $40,000 a year once you've retired, then you should aim to have at least $1,000,000 in your 401(k) account by the time you retire.

Is it better to rent or own in retirement?

Neither renting nor owning is universally better in retirement; the best choice depends on your finances, lifestyle, and location, with renting offering flexibility, lower upfront costs, and freedom from maintenance but risking rising rents, while owning provides long-term stability (especially if paid off), potential equity, and tax benefits, but comes with unpredictable repair, tax, and insurance costs. For those wanting to downsize or travel (snowbirds), renting often wins; for those valuing permanence and having a paid-off home, owning may be more financially sound. 

What is considered a good monthly retirement income?

A good monthly retirement income is often considered 70-80% of your pre-retirement income, but it truly depends on your lifestyle, location, and expenses, with benchmarks ranging from $4,000-$8,000+ monthly for a comfortable life, factoring in needs like housing, healthcare, and travel. Financial planners suggest calculating your specific "income gap" by subtracting guaranteed income (like Social Security) from your estimated needs to see what you need from savings. 

What age is considered early retirement?

Early retirement is generally considered retiring before age 65 (Medicare eligibility), with key milestones being age 62 for Social Security and 59½ for penalty-free retirement account withdrawals, though some see retiring in their 30s/40s as "early," while others consider 64 early. Definitions vary, but it's often defined as leaving the workforce significantly before the traditional age, requiring careful health and financial planning.