Here's the Average Monthly Retirement Income for Americans Over 60

Most retirees care more about the monthly income they will receive after leaving the workforce than how much is in their nest egg. Retirement income helps people gauge if they can keep up with living expenses while addressing emergencies.

This guide will reveal what an average retirement income actually looks like each month and some practical strategies to boost a fixed income.

How much does the typical retiree earn each month?

Current Population Survey Annual Social and Economic Supplement (CPS ASEC) data found that the average income for Americans who are 65 or older is $87,260, while the median income is $56,680. Those figures come to monthly incomes of $7,271.67 and $4,723.33 per month.

If you are looking specifically for the 60-64 age cohort, the average income is $125,100 while the median is $83,770. Those figures come to $10,425 and $6,980.83, respectively.

Average vs. median income

Average income involves taking all of the values and dividing them by the total number of values. For instance, the sum of 5, 10, and 75 is 90, which results in an average value of 30. The median is the middle number in the data, so it would be 10 in the earlier example.

Outliers like a billionaire's earnings will lift the average higher, but it won't have any impact on the median. That's why the median income figure is a more reliable gauge for financial planning.

Income drops as people get older

The median and average monthly income numbers gradually decrease as people get older since more people enter retirement. Some people still work in their early and mid-60s, but fewer of those same people continue to work in their late 70s.

That's why the survey found that the median income is $83,770 for people who are 60-64 years old, but the median income is only $47,790 for people who are 75 years or older.

Expenses also decrease

Although income drops over time, it's also normal for people to cut back on expenses. Transportation costs go down the moment retirees no longer have to make their daily commutes. Furthermore, people don't travel as much in their 70s as they do in their 60s.

Medical bills and home maintenance costs tend to increase, but almost every other key expense goes down.

Social Security and savings do most of the work

Most people can only rely on Social Security and their savings in retirement. Pensions used to be more widespread, but fewer employers offer them, turning the former "three-legged stool" into a wobbly chair.

People who have not built large nest eggs may have to rely on Social Security alone. The average Social Security check for retired workers is $2,071 per month in 2026, according to the Social Security Administration. You can create a my Social Security account to see your projected benefit and how delaying could increase the size of your payouts over time.

Map out your projected income and expenses

Median and average incomes for retirees do not change your financial situation. Reviewing Social Security benefit projections and using the 4% rule to calculate how much you can safely withdraw from your nest egg each year can offer a reliable estimate.

Then, assess how much you will spend each year on necessities and discretionary purchases. Travel costs will likely be higher early in retirement and then decrease when you are in your 70s. You can review previous credit card statements to see how much you spend each month and use that as a gauge.

Working longer may be the best financial move

Some people want to retire when they turn 60, but it's not the right financial move for everyone. Working a few more years increases your monthly income and gives you more time to build your nest egg.

People who retire at 70 also don't need to stretch out their nest eggs for as long as people who leave work at 60. You can also secure higher Social Security benefits if you delay claiming them.

Transitioning from full-time to part-time can provide the best of both worlds

You don't have to choose between a 40-hour workweek and complete retirement. Some people look for part-time work that keeps them busy and provides some extra income to cover expenses.

Searching for part-time work right before leaving your full-time job can give you a sufficient financial foundation if you combine savings and Social Security. The part-time job may be enough to delay Social Security further and increase your monthly checks.

Build a cash buffer to minimize sequence of returns risk

A 401(k) is a great resource for covering expenses, but the unpredictability of the stock market can catch retirees by surprise at the worst time. The sequence of returns risk reflects the possibility of assets entering a sharp correction the moment you need to withdraw from your nest egg.

Retirees can navigate this risk by having a cash buffer that can cover one year of living expenses. That way, you don't have to pull as much money from your nest egg when stocks are in a correction. Then, you can tap into your portfolio after assets have rebounded.

Bottom line

The median and average incomes of people who are 60 years or older may not reflect your financial situation. They are good metrics to consider when measuring your status, but you also have to keep more cash in your wallet and pursue career advancement opportunities if you want to build up your nest egg.

Median income and expenses drop as people get older. Downsizing now and keeping your expenses in check can give you more financial flexibility when you need it the most.

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