Generally speaking, most retiree couples would be okay w/ about $7K/mo in retirement income, including SS. Also, that assumes you own a house free and clear and have no debt. SS currently pays couples up to $9K/mo. However, most couples make a hash of SS, getting less than $3.7K/mo.
You can retire comfortably on $3,000 a month in retirement income by choosing to retire in a place with a cost of living that matches your financial resources. Housing cost is the key factor since it's both the largest component of retiree budgets and the household cost that varies most according to geography.
A retired couple would need more than $100,000 annually to live comfortably in all of the most expensive states for retirement. Here's a look at the top 10 most expensive states for retired couples, along with the total annual cost of living comfortably: Hawaii: $232,837. California: $182,841.
The average retiree household spends $9,033 annually ($753 monthly) as compared with $13,174 ($1,098 monthly) across all households with respect to transportation costs: a rise of 10.5% from the previous year for retiree households fueled by a large increase in public and other transportation spending.
The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.
Whether $3,000 a month is a good income or not largely depends on where you live and your personal circumstances. For some people, $3,000 a month may be more than enough to cover their living expenses and even have some left over for savings and leisure activities.
By age 35, aim to save one to one-and-a-half times your current salary for retirement. By age 50, that goal is three-and-a-half to six times your salary. By age 60, your retirement savings goal may be six to 11-times your salary. Ranges increase with age to account for a wide variety of incomes and situations.
With $800,000 in savings, you can probably cover $4,000 in monthly living costs. However, retirement accounts alone cannot safely sustain that spending for a 25- or 30-year retirement.
Health insurance, paying for medical services and supplies, and filling prescriptions are major expenses, and with older adults often depending on high-quality medical care to remain healthy well through retirement, this becomes essential.
According to data from the Social Security Administration, as of January 2024, the average monthly retirement benefit payment was $1,909.01, which comes to about $22,322 per year.
While this figure can vary based on factors such as location, family size, and lifestyle preferences, a common range for a good monthly salary is between $6,000 and $8,333 for individuals.
What the average couple gets from Social Security right now. The average monthly retirement benefit as of May 2024 is $1,917 per month. If both spouses qualified for this amount, their household monthly benefits would be $3,834 per month, or about $46,000 per year.
We've asked financial experts to weigh in and many have emphasized that with careful planning and well thought out strategies, it's entirely possible to live on this amount during retirement.
Rich retirees: In the 90th percentile, with net worth starting at $1.9 million, this group has much more financial freedom and is able to afford luxuries and legacy planning.
Let's say you consider yourself the typical retiree. Between you and your spouse, you currently have an annual income of $120,000. Based on the 80% principle, you can expect to need about $96,000 in annual income after you retire, which is $8,000 per month.
Top the amount with 401(k) savings, living on $3,000 a month after taxes is possible for a retiree. For those who only have social security benefits to rely on, there are many places where they can retire on their checks both in the USA and around the world.
Exactly how much in earnings do you need to get a $3,000 benefit? Well, you just need to have averaged about 70% of the taxable maximum. In our example case, that means that your earnings in 1983 were about $22,000 and increased every year to where they ended at about $100,000 at age 62.
For $3,000 per month, you would need to save $720,000, and so on. The idea is that you'll have enough passive income streams to support you in your retirement years. Many retirees receive income from rental properties, dividends, pensions, annuities, Social Security and other sources.
In simplest terms, take a $2,500 mortgage payment out of the picture and you've just reduced your annual expenses by $30,000. Now, factor that against the amount of money you'll need to manage retirement: between 55% to 80% of your current annual income, according to Fidelity.
Starting with the month you reach full retirement age, there is no limit on how much you can earn and still receive your benefits. You work and earn $32,320 ($8,920 more than the $23,400 limit) during the year.