If you are advancing to the retirement age, you might be wondering if your average retirement income would be sufficient enough. If you want to pursue your hobbies or interests after retirement, you need to make sure the average retirement income you’re getting is enough to fulfill your desires. According to research, 50% of families are at risk of not being able to retain their living standards post-retirement.
Your average retirement income depends on factors like how you wish to spend it. For people living in their houses at leisure, a lesser income would suffice. But for those who want to spend it on things like traveling, the income might prove to be very less.
The Median Income
If the Age of the Household involved is about 55-65. The Median income is around 60-70 thousand dollars.
If the Age of the Household involved is about 65-75. The Median income is around 30-40 thousand dollars.
The above-given numbers may seem to be a little high, and misleading as families with higher income tend to make the average high.
The median income is the total of all the incomes from low to high, where the middle income in the list acts as the median. This has been chosen to be the most accurate representation of retirement money. But even then, these median numbers fail to reflect the reality for a large population of people.
Reports say that most people of age 65 or older have lesser incomes than $25000 a year. The median household income keeps getting lesser as you age.
Surveys have asked people if they could survive with $32,000 when they are 75 or older. If the income isn’t enough for you, there are other ways of income to help you sustain.
The Monthly Average Retirement Income
You cannot pinpoint one particular amount as the monthly average retirement income as it depends on several factors that vary from person to person. Your investment returns, inherited funds, and savings result in creating differences in the monthly average income for each person.
If the age range of the Household is about 55-65 years, the Monthly Median Income is around 6 thousand dollars.
If the age range of the Household is about 65-75 years, the Median income is around 3-4 thousand dollars.
This is an average estimation and may vary from the retirement income in your age group.
The Amount You Should Save Up For Retirement
The number may vary, but you should save somewhere around 10-12times of the current amount that you are earning. A rule is to aim to replace around 70% of your annual pre-retirement income. While planning your retirement income strategy, you need to consider your personal financial goals, future traveling plans, as well as expenses of other kinds.
After retirement, your expenditure for healthcare might increase, but other debts you’ve had would have been paid in time. You also need to keep in mind that your income needs to last you at least for 20-30 years after retirement.
Retirement Planning And Average Retirement Income
Average numbers for income keep differing. It might be difficult to calculate the average retirement earning you would need without the help of a financial advisor. Additionally, you can use the numbers for national earning post retirement for comparing your savings and earnings. Therefore, Savings might fall short, but other options like reverse mortgages and investment portfolios will be present. Furthermore, annuities as well as social security, or pensions can help you sustain yourself.