Average Retirement Income in the US

• The average retirement income in the U.S. varies widely because retirees rely on different combinations of income sources, including Social Security, pensions, workplace retirement accounts, earnings, and personal savings.

• The median income for households led by someone age 65 or older was $56,680 (2024), while the average retired worker’s Social Security benefit was about $2,071 per month (2026).

• A realistic retirement income plan should focus on monthly expenses, healthcare, inflation preparation, debt, and how long the income may need to last.

Retirement income can look very different from one household to another. Some retirees live mostly on Social Security, others receive pensions, withdrawals from retirement accounts, part-time earnings, or income from other assets. This is why the average retirement income in the U.S. is a useful starting point, but shouldn’t be treated as a target.

The question is whether your expected post-retirement income can support your needs, lifestyle, and long-term security. In this guide, you’ll learn about the average retirement income in the U.S., common income sources, how retirement needs can change over time, and more.

What Is the Average Retirement Income?

Average retirement income is broad, and it can be easy to misunderstand. Averages can be pulled upward by households with high incomes, so they may not reflect what the typical retiree actually receives. Median income often provides a clearer picture because it marks the middle point: half of U.S. households have more income, and the other half have less.

In 2024, the median income of households led by someone age 65 or older was $56,680 . Retirees also live under different circumstances. A married couple may receive two Social Security benefit payments each month, a pension, and share housing costs. A single retiree may rely on only one benefit and face many of the same fixed expenses alone. Some retirees still work part-time, and others stop working completely.

Median Income

Median income can help people avoid being misled by high earners. If a small group of retirees earns above-average income, the average can increase even when most other retirees earn less. The median offers a more grounded view and, for planning purposes, can feel more realistic.

Still, the median isn’t a perfect reference point. A retiree with a paid-off home may require less income than someone renting in a high-cost-of-living area. A person with major medical costs may need more than someone without health issues. Your retirement income goal should be based on your real life, not a national figure.

The national figure also doesn’t factor in differences by age, marital status, work history, and savings level. A retiree in their late 60s may have different income sources than someone in their 80s. A widow or widower may face a sharp shift after losing a high-earning spouse’s income and having to rely on only their own.

What Are Some Common Retirement Income Sources?

Most retirees don’t rely on a single income source. Social Security is the most common, but it often works alongside other forms of income. Pensions, retirement account withdrawals, part-time work, and personal savings can all play a role. Some people also receive rental income, annuity payments, or funds from a business they own.

The Social Security Administration (SSA) reported an estimated average monthly retirement benefit of $2,071 for retired workers (2026) . That equals about $24,852 per year for one retired worker, before taxes or Medicare premiums. For many households, that amount covers only a portion of their monthly expenses, which is why retirees often need multiple sources of income.

Retirement income can also change as people age. Part-time work may stop. Required withdrawals from certain retirement accounts may begin. A spouse may pass away, affecting household income and benefits.

Social Security

Social Security benefits depend on lifetime earnings and claiming age. Workers with higher lifetime earnings typically receive higher benefits, and the formula is designed to replace a larger share of income for lower earners. Claiming earlier can lower monthly benefits, while waiting can increase them up to a certain age. This makes claim timing an important decision.

Social Security can also include spousal and survivor benefits for people who qualify. These benefits may be important for households where one spouse earns much more than the other. They may also matter after the passing of a spouse.

Household Size and Lifestyle

Retirement income needs aren’t the same for everyone. A couple may share larger costs, which can make household expenses easier to manage. A single retiree may have lower food or travel costs, but their fixed expenses don’t get cut in half.

Lifestyle choices also play a role. Some retirees want a quiet, low-cost life close to home. Others want travel, dining out, and frequent entertainment. These choices can generate vastly different monthly budgets. Retirement income should support the life you actually expect to live, not the one the average person in the U.S. is living.

Monthly Budget

A monthly budget helps turn retirement income from an abstract figure into a real plan you can start applying right away. Start with fixed expenses like housing, insurance, and utilities. Then add in variable costs like groceries, gas, clothing, gifts, hobbies, and entertainment. After that, include irregular costs like home repairs, car repairs, medical bills, and travel.

Categories a retirement budget should include are:

• Housing and utilities

• Food, transportation, and insurance

• Healthcare and prescriptions

• Personal spending, travel, and emergencies

Many retirees underestimate irregular expenses. A new roof, dental bill, or car repair can strain a budget immensely. Your budget should also account for inflation. Even modest price increases can add up over the course of retirement. If expenses go up, and income stays the same, purchasing power can decrease .

Retirement Income Can Change Over Time

Retirement income isn’t always steady. Some people retire with part-time earnings, then stop working later on. Others delay Social Security, then begin receiving their benefits after a few years. Some withdraw more from savings early in retirement and less later on. The first year of retirement may look very different from the 10th year.

Expenses can also shift over time. Early retirement may include more travel, home projects, and hobbies. Later years may bring higher healthcare costs or other support needs. A retiree may move, downsize their home, or pay off large amounts of debt, which can affect monthly cash flow. Life events can also affect income. Divorce, illness, or the loss of a pension can impact access to necessary resources.

Long-Term Planning and Healthcare

People often focus on the first years of retirement, but income may need to last for decades. A person who retires in their 60s could spend 20, 25, or 30 years in retirement. That makes longevity one of the most important aspects of planning.

Healthcare should be a major part of the retirement discussion, especially since it typically tends to get more expensive with age. Medicare can cover many needs, but retirees may still need to pay for premiums, deductibles, copays, prescriptions, dental care, vision care, and hearing care.

Planning for healthcare doesn’t mean assuming the worst. It means making room for costs that are common later in life. A retiree with a realistic healthcare estimate is likely to feel less anxious about the future.

Expand Your Retirement Portfolio With AHG

The figure for the average retirement income in the U.S. can help you understand the broader picture, but your personal plan should reflect your own income, expenses, health needs, and goals. Some clients also consider precious metals as part of their broader retirement plan.

A Gold IRA is a self-directed account that can hold physical gold and other qualifying precious metals while the physical pieces are stored in an IRS-approved depository. American Hartford Gold offers a Gold IRA for clients who want to take control of their financial future by diversifying their asset holdings.

FAQs

What is the average retirement income in the US?

The median income for households led by someone age 65 or older is around $56,680 (as of 2024). Social Security also provides a reference point, with the average retired worker’s benefit estimated at about $2,071 per month (as of 2026).

Is Social Security enough for retirement?

Social Security may cover part of retirement expenses, but most people need other income as well. Housing, food, healthcare, insurance, transportation, and unexpected events can add up quickly.

Why do retirement income numbers vary so much?

Retirement income varies because people have different work histories, savings amounts, pensions, household sizes, and claiming ages for Social Security. Some retirees also work part-time or have income from other assets like rental properties. National averages can be helpful, but they may not necessarily reflect your situation.

How can I estimate my retirement income needs?

Start by listing your expected monthly expenses, then add in irregular costs like medical bills and travel. Next, list reliable income sources like Social Security, pensions, and planned withdrawals from retirement accounts. Any gap you find between income and expenses shows whether you may need to adjust your plan.

Sources:

Income in the United States: 2024 | U.S. Census

2026 SOCIAL SECURITY CHANGES | Social Security Administration

How Can I Plan for Variable and Fixed Expenses? | Nerdwallet

Purchasing Power Explained: How Inflation Impacts Value | Investopedia