Key Takeaways The average retired household spends around $5,000 per month, with housing, healthcare, and food being the largest expense categories. With a median 401(k) balance of $210,724, retirees relying on the 4% withdrawal rule and Social Security benefits often face a shortfall in covering monthly costs.
The average retired household spends around $5,000 per month ($60,000 per year), with housing, healthcare, and food being the largest expense categories.
According to the U.S. Census Bureau and data from the Social Security Administration, the average retirement income in the United States in 2025 for individuals is approximately $60,000 per year, or $5,000 per month. However, that includes both high earners and lower-income retirees.
Average individual retirement income: $60,000/year or $5,000/month. Median individual retirement income: $47,000/year or $3,900/month. Average retirement income for couples: $100,000/year or $8,300/month.
How many Americans have $500,000 in retirement savings? Of the 54.3% of U.S. households that have any money in retirement accounts, only about 9.3% have $500,000 or more in retirement savings.
Numbers from the Federal Reserve's 2022 Survey of Consumer Finances suggest they are. The average remaining retirement savings for the 75-and-up crowd at that time was $462,410.
1. Health care costs. Although retirees expect health care bills to be a reality, the rising cost of good health care often surprises them, noted Jeffrey Stouffer, a certified financial planner and Finance and Investing Expert on JustAnswer.
The typical American has an average retirement savings of $521,522. Americans in their 60s have the most saved for retirement with average balances close to $1.2 million. Average account balances more than double between those in their 20s vs their 30s.
Those aged 65 and older averaged a total of $7,714 per year on food, or approximately 12.8% of their annual spending. That included food both at home and away from home. Alcoholic beverages are also included in monthly food costs, but these expenses are minimal, totaling just $41.17 per month.
The top ten financial mistakes most people make after retirement are:
According to data from the Social Security Administration, as of June 2025, the average monthly retirement benefit payment was $2,005.05, which comes to about $22,327.68 per year.
Data from the Federal Reserve's Survey of Consumer Finances, shows that only 4.7% of Americans have at least $1 million saved in retirement-specific accounts such as 401ks and IRAs. Just 1.8% have $2 million, and only 0.8% have saved $3 million or more.
What Is the Average Net Worth at Retirement? According to data from the Federal Reserve, the average net worth for those aged 65 to 74 was $1,794,600, which is more than four times the median net worth of $409,900. This significant difference is because the super-wealthy skew the average much higher.
For people aged 60, Fidelity's retirement savings guidelines recommend an amount in savings worth six times your salary in order that you have enough to maintain your standard of living in retirement. So, someone earning £60,000 would need £360,000 in savings - which can mean money both inside and outside of pensions.
Key takeaways. Fidelity's guideline: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. Factors that will impact your personal savings goal include the age you plan to retire and the lifestyle you hope to have in retirement. If you're behind, don't fret.
Financial experts typically consider someone wealthy if they have a retirement net worth of at least $1 million, excluding the value of their primary residence. This figure encompasses assets such as investments, savings, and properties minus any liabilities like debts or mortgages.
Retirees are often surprised by the costs of homeownership, health care and taxes in retirement. The cost of maintaining your retirement lifestyle is higher than most people expect due to the impact of inflation over time.
Financial experts are quick to point out that there are no hard and fast rules when it comes to retirement. “You can have a great retirement on $5,000 a month, and you can have a great retirement on $50,000 a month,” says Joe Conroy, financial advisor and owner of Harford Retirement Planners in Bel Air, Maryland.
It's important to understand the options available to help protect the assets you've spent a lifetime accumulating.
Based on the BLS data and trends, it's likely that the average monthly spend for middle-class Americans who are 80 years old is close to $4,200 or so.