The average retirement income in the United States falls roughly between $20,000 and $35,000 per year depending on where you live, your age, and which income sources you have. That figure comes primarily from Social Security, pensions, retirement account withdrawals, and investment income. For many retirees, the reality is that income drops significantly from working years, and understanding where that money comes from helps you plan whether yours will be enough.
What the Numbers Actually Look Like
Average retirement income varies widely by location. Based on U.S. Census Bureau data, the highest averages cluster around $34,000 to $43,000 per year, while the lowest fall in the $20,000 to $23,000 range. That gap reflects differences in cost of living, career earnings history, and access to employer-sponsored retirement plans during working years.
These averages can be misleading because they blend retirees who have multiple income streams with those living almost entirely on Social Security. A retiree collecting a government pension, Social Security, and withdrawals from a 401(k) will have a very different financial picture than someone relying on a single monthly check. Medians, which represent the middle point where half of retirees earn more and half earn less, tend to be lower than averages because a small number of wealthy retirees pull the average up.
Social Security as the Foundation
Social Security is the single largest income source for most retirees. As of January 2026, the average monthly benefit for retired workers is $2,071 after a 2.8% cost-of-living adjustment. That works out to about $24,852 per year.
Your actual benefit depends on your 35 highest-earning years and the age you start claiming. Filing at 62 permanently reduces your monthly check, while waiting until 70 maximizes it. The maximum benefit at full retirement age is significantly higher than the average, but most people don’t earn enough over their careers to qualify for it. For a married couple where both spouses worked, combined Social Security benefits often land in the $40,000 to $50,000 range, which changes the household math considerably.
Where the Rest of Retirement Income Comes From
Beyond Social Security, retirees typically draw from some combination of these sources:
- Employer pensions: Traditional pensions that pay a set monthly amount for life are less common than they used to be, but government employees, military veterans, and workers at large legacy companies often have them. A pension can add anywhere from a few hundred to several thousand dollars per month.
- 401(k) and IRA withdrawals: These accounts provide income based on how much you saved and how your investments performed. A common guideline is withdrawing about 4% of your balance per year, so a $500,000 portfolio would generate roughly $20,000 annually.
- Part-time work: About one in five people over 65 still earns some employment income. Even modest part-time earnings of $10,000 to $15,000 a year can meaningfully close a budget gap.
- Investment and rental income: Dividends, interest, and rental properties contribute for retirees who built these assets during their working years.
The mix matters. A retiree with $25,000 from Social Security, $12,000 from a pension, and $15,000 from retirement account withdrawals has $52,000 in annual income, which puts them in a much more comfortable position than the average alone suggests.
How Retirement Income Compares to Spending
Knowing the average income only tells half the story. The Bureau of Labor Statistics found that average annual household spending for retirees was $54,975 in 2022. That’s a useful benchmark, though your own spending will depend on whether you own your home outright, where you live, and your health.
The biggest spending categories break down like this:
- Housing (shelter): $11,186
- Transportation: $8,065
- Healthcare: $7,505
- Groceries: $4,938
- Utilities: $4,228
- Entertainment: $2,589
- Dining out: $2,412
Healthcare stands out as a category that tends to grow over time. While housing and transportation costs may decline if you pay off a mortgage or drop to one car, medical expenses often increase as you age. Retirees on Medicare still face premiums, copays, and gaps in coverage that add up quickly.
Comparing the average income figures (roughly $25,000 to $35,000 for an individual) against nearly $55,000 in household spending reveals why many retirees either need a second income source, a spouse’s benefits, or savings to draw from. A single retiree living on Social Security alone faces a real gap between income and typical expenses.
Why Averages Can Be Misleading
Retirement income is not evenly distributed. A relatively small group of retirees with large pensions, substantial investment portfolios, or continued business income pulls the average higher than what most people actually experience. The median household income for Americans 65 and older tends to run lower than the mean, often by several thousand dollars. If you’re trying to figure out what “normal” looks like, the median is a more honest number.
Age also plays a role. Retirees in their late 60s often have higher incomes because some are still working part-time, they may delay Social Security to get a larger check, and their retirement accounts haven’t been drawn down as far. By the late 70s and 80s, income tends to decline as savings deplete and fewer people work. At the same time, spending often drops in later years, particularly on transportation and entertainment, though healthcare costs can offset those savings.
How to Gauge Whether Your Income Will Be Enough
Rather than comparing yourself to the national average, a more practical approach is to estimate your own retirement budget. Add up your expected monthly expenses, including housing, food, insurance premiums, transportation, and a buffer for unexpected costs. Then tally your income sources: Social Security (you can check your projected benefit at ssa.gov), any pension, and sustainable withdrawals from savings.
A common rule of thumb is that you’ll need about 70% to 80% of your pre-retirement income to maintain a similar lifestyle. Someone earning $70,000 before retirement would target $49,000 to $56,000 per year. If Social Security covers $25,000 of that, you need savings or other income to fill the remaining $24,000 to $31,000 gap each year.
The national averages are a starting point for understanding where retirees stand broadly. But retirement comfort depends less on how you compare to the average and more on whether your specific income covers your specific expenses, with enough margin to handle the healthcare costs and inflation adjustments that come with a retirement lasting 20 or 30 years.