Here is the average income for retirees in the US — how do you compare?
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Americans hoping to retire soon aren’t likely to feel that the timing’s ideal. Even those with decades worth of savings are taking huge hits, no thanks to the triple whammy of inflation, high interest rates and a volatile stock market.
As of January, the inflation rate was 3.1%. But have incomes kept up? With fears of a pending recession and worries about the country defaulting on its debt, that question suddenly matters much more. And is there any hope Social Security can come to a retiree’s rescue?
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For many Americans who count on Social Security as the foundation of retirement income, it’s next to impossible to live out your retirement comfortably. The average Social Security benefit was $1,860.23 per month in January, according to the Social Security Administration. that’s roughly $429 a week — not exactly a king’s ransom.
And even if your retirement income does include some money from other sources, is the final tally enough top retire the way you want to?
What the average American retiree makes
Americans 65 years and older had a median annual income of $50,290 in 2022, according to the latest data froom United States Census Bureau. While this figure is unchanged from 2021, it was about 2.6% lower than in 2020. So, what else can you do to make sure you have enough money in retirement?
If you prepare yourself by putting your retirement fund in a Gold IRA* you can help build a comfortable nest egg to ease some of that financial worry.
With American Hartford Gold* — an industry leader in precious metals, offering physical delivery of gold, silver and platinum — you can open a gold IRA and preserve your retirement with an inflation-resistant asset.
A gold IRA can give you comfort in knowing that regardless of the economic circumstances, you have the ability to build up a solid retirement fund to rely on.
On the other hand, you can add in a stream of passive income that allows you to both prepare for retirement and to enjoy during the golden years by investing in commercial real estate with First National Realty Partners.*
FNRP is a private equity firm that gives accredited investors access to necessity-based commercial real estate* without the hassle of being a landlord. They’ll manage your investments through their entire life cycle and all you have to do is enjoy the quarterly distributions.
Read more: No landlord? No problem! Explore hassle-free real estate investments
How much will you spend in retirement?
To answer that question, a number of critical factors must be addressed: Your location and cost of living, your overall health, your monthly expenses and your discretionary spending.
The U.S. Bureau of Labor Statistics broke down the expenses of those 65 and older. Taking into account combined income sources, including savings and Social Security benefits, Americans ages 65 and over spent an average of $57,818 in 2022 — outpacing the median annual income for the same year. Especially once medical expenses are factored in, it’s risky at best to rely on Social Security alone to cover all your retirement expenses.
Of course, retirement expenses and essential purchases are inevitable. But you can make the most out of them by downloading the Acorns* app and linking your bank account. With Acorns, when you spend money, the app automatically round up the total cost to the nearest dollar and invests the remainder in a diversified portfolio* so even when you have to spend, you're investing money at the same time.
With expenses often outpacing income, it’s no wonder that many American retirees feel the need to re-enter the workforce.
So what will it be: back to the grind or back to the drawing board? If you aren’t sure about your next steps, consider meeting with a financial adviser through Zoe Financial* to work out smart solutions with the money you’ve got.
Zoe Financial is a modern wealth platform that matches you with financial professionals based on your goals. Getting connected with an advisor* through Zoe is free and easy— just answer a few questions about yourself and their algorithm will match you with advisors, with no obligation to hire.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
