Is There Really an Average Retirement Income?

As human beings, we are kind of wired to compare. We compare ourselves to others in so many different ways,and one of the BIG ways we compare is in terms of money. Not only do we think about whether or not so and so has more money than us, but we also wonder about things like how much others have saved for retirement and how we stack up.   

And, while there is somewhat of an average reitrement income, it’s important to remember that all retirement needs are different. Thus, you really shouldn’t be overly concerned with what others have saved, but more about whether or not you have enough to meet your own personal needs in retirement. At the end of the day, that’s really all that matters. With that said, however, it is smart to know the average for your type of retirement savings and to make sure you’re somewhat close so that you’ll be okay during retirement.

Social Security Retirement

If you’re planning on depending on social security income for retirement, you may want to look into other options to supplement that income. After all, as of 2014, the average annual social security retirement income was only $15,528, which is hardly enough to live on for the average person.

Plus, you are not absolutely guaranteed that amount. You have to meet certain requirements, such as having at least 35 years of work, to get the full amount. Plus, if you had high earnings in your working life, you’re likely to have smaller earnings in your retired life.

As such, try not to depend on just this type of retirement income alone.

Retirement Savings

If you’re planning to live off of your retirement savings, then you’ll have more control over how much money you bring in on a regular basis. Saving wisely now means higher earnings during retirement.

Sadly, a large chunk of Americans don’t have ANY money saved for retirement, but, among those that do, the average is around $59,000 saved, which, as is the case with social security retirement funds and most other retirement funds, would likely need to be supplemented.

Remember, your job isn’t to “beat” or even “meet” the average retirement. It’s to determine your needs in retirement, which you can easily figure out by working with a financial advisor, and then to make sure that you have enough to hold YOU over, which will likely mean combining various forms of retirement funds. At the end of the day, though, whatever you have to do to “make it” during retirement will be worth it!

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