Retiring is a dream for many Americans, but it requires careful planning and saving. Knowing the average retirement income in the United States can help you see how it compares to the national average and plan for your golden years. According to a Gallup survey, the average retirement age for Americans is 66, and the median retirement income is $43,696. To get a more accurate idea of what a good retirement income looks like for you, start by determining your answers to the points above. Statistically speaking, your income slowly decreases as you age, as shown in the table above.
This is due to several factors, one of which is that most people don't earn money during this period, but instead spend their life savings. Another predominant factor in declining retirement income is the long list of retirement risks that are not taken into account when planning this stage of life. This includes taking into account longer life expectancy, health care costs, long-term care, and more. When young people aged 18 to 29 were interviewed about retirement, they expressed optimism that they will be able to retire early, when they are close to 60.
However, once they reach their 30s, that optimism diminishes, perhaps due to the reality of earning a living to catch up with them. Fortunately, Americans seem to be taking the possibility of a longer life very seriously. According to a TD Ameritrade study, 81% of Americans are moving their assets in preparation for living longer than their ancestors by reducing expenses, buying guaranteed life insurance and maximizing their contributions to retirement plans. Withdrawing money from a retirement plan early often involves financial penalties, so financial experts advise against doing so. If you're counting on Social Security to fund your post-retirement life, keep in mind that Social Security is only guaranteed to be funded until 2035, according to Business Insider.
After this date it will only be funded three-quarters. This means that people who are already receiving money from it may see a drop in payments and new retirees may have trouble getting money. By 2035, the number of Americans age 65 and older will increase from about 56 million today to more than 78 million. Therefore, more people will get money from the total fund, but fewer people will contribute to it. While it's good to have a retirement plan, sometimes life has other plans.
The most common reasons for retiring are health and job changes, according to the TD Ameritrade survey. Fifty percent of people retired sooner than they would have liked for reasons such as layoffs, caring responsibilities, an unexpected change in their financial situation and health problems. To ensure you have enough money for retirement and avoid having to retire earlier than planned due to financial issues or health problems, start saving now and review your finances regularly. Knowing the average retirement income in the United States can help you see how it compares to the national average and plan for your golden years. Reviewing your average retirement income can give you an idea of where to start preparing and assess the state of your finances. The median number refers to the number located exactly in the center of a set and is a more accurate measure of the national average than the average number. To get a more accurate idea of what a good retirement income looks like for you, start by determining your answers to the points above.
Statistically speaking, your income slowly decreases as you age due to several factors such as not earning money during this period and long-term risks not taken into account when planning this stage of life. As someone who had to learn many of her lessons about money the hard way, Jordan Rosenfeld enjoys writing about personal finance to empower and educate people on how to make the most of what they have and live a better quality of life. To ensure you have enough money for retirement and avoid having to retire earlier than planned due to financial issues or health problems, start saving now and review your finances regularly.
