This Is The Average Retirement Income (Unexpected)

Summary

The video delves into the average retirement income, highlighting the financial struggles many face as they rely heavily on Social Security. It reveals that 12% of men and 15% of women aged 65 and older depend on Social Security for over 90% of their income. With the median monthly income for this age group being $4,199, or just over $50,000 annually, many are forced to work past traditional retirement age or depend on family and government assistance. The video underscores the importance of early planning and investment for a secure retirement, addressing the impact of inflation and the varying retirement incomes across states.

Takeaways

• 💼 Many people are not saving enough for retirement, leading to a reliance on Social Security or other forms of assistance.
• 👴 12% of men and 15% of women aged 65 and older depend on Social Security for 90% or more of their income.
• 🏡 The median monthly income for US adults aged 65 and older is $4,199, which is just over $50,000 per year.
• 🔄 A third of Americans are aiming for a phased retirement, working part-time before fully retiring.
• 📊 70% of Americans aged 65 to 69 were retired between 2016 and 2022, with higher percentages in older age groups.
• 💰 Average retirement income varies by state due to differences in wages, cost of living, and tax rules.
• 💸 Retirees in the US spent an average of $57,818 in 2022, which is above the median income for this age group.
• 🏠 Housing costs often decrease as people age, with many having paid off their mortgages or downsizing to more affordable homes.
• 💔 The average net worth of households headed by someone aged 65-74 is about $410,000, but this includes the value of their home.
• 📈 Inflation is hitting retirees hard, causing the value of their fixed incomes to shrink as the cost of living increases.

Q & A

What is the average retirement income for Americans aged 65 and older?

The average retirement income for U.S. adults 65 and older is reported to be $75,020 per year, while the median income is $50,290 according to data from the Census Bureau and Bureau of Labor Statistics [^3^].

How much do retirees typically spend on health care during their retirement?

A 65-year-old retiring can anticipate spending an average of $157,500 on health care throughout their retirement [^9^].

What percentage of retirees rely on Social Security as their primary source of income?

Approximately 40% of seniors rely on Social Security funds for their retirement [^9^].

What is the average monthly Social Security benefit for retirees?

As of January 2024, the average monthly Social Security benefit check was $1,907 [^3^].

How does the retirement income vary by gender?

Retirement-age men have a median income of $31,220 compared to women, who take in $27,350. On average, men 65 and older earn $50,490 per year compared to $40,830 for women [^3^].

What is the average annual spending for Americans aged 65 and older?

Americans 65 and older spent an average of $57,818 in 2022 [^3^].

What percentage of nonretired individuals have no retirement savings?

About 28% of nonretired individuals had no retirement savings, but more than three-fourths of them had at least some [^9^].

How much of their monthly income do retirees typically spend on housing expenses?

Retirees reported that nearly one-third of their monthly income goes toward housing expenses [^9^].

What is the average retirement account balance for an IRA?

The average retirement account balance for an IRA was $135,600 in 2021 [^9^].

How many Americans expect to work after retirement?

57% of Americans expect to work after retirement [^9^].