Here's the Average Monthly Retirement Income for Americans Over 70

Retirement income doesn't stay flat. For most Americans, it starts declining well before they reach 70 and continues to fall through their 70s and beyond. Understanding where you land relative to your peers is one way to gauge whether your retirement plan is holding up.

The U.S. Census Bureau publishes household income data by age bracket through its annual Current Population Survey. The most recent figures, from the 2025 CPS (covering 2024 income), give a clear look at what Americans in their 70s are actually bringing in.

What is the average monthly retirement income for Americans over 70?

The Census data breaks the 70-and-older population into two groups:

Households aged 70–74

• Median retirement income: $61,780 per year ($5,148 per month)
• Mean retirement income: $92,600 per year ($7,717 per month)

Households aged 75 and older

• Median retirement income: $47,790 per year ($3,982 per month)
• Mean retirement income: $73,820 per year ($6,152 per month)

The median is the more useful benchmark. A small number of high-income households can pull the mean upward significantly, so the median — the point where half of retirees earn more and half earn less — tends to better reflect what a typical person in that age group actually brings home.

Why does income fall as retirees age?

The gap between the 70–74 bracket and the 75-and-older bracket is substantial, and the reasons are fairly consistent across retirees.

Earned income — from wages or self-employment — disappears almost entirely by the late 70s for most people. Retirement savings draw down over time rather than grow. Fixed pension payments don't adjust for inflation, which gradually erodes their purchasing power. And Social Security, while indexed to inflation, tends to be a modest benefit for many Americans.

For context, households aged 65–69 have a median income of $68,860 per year ($5,738 per month). The 70–74 bracket represents a noticeable step down from that, and 75-and-older represents another.

How does this income compare to what retirees actually spend?

Knowing what you earn is only useful if you can compare it to what you need. The Bureau of Labor Statistics tracks consumer spending by age, and the pattern mirrors the income trend: older households spend less, partly by choice and partly by necessity.

Americans between 65 and 74 spend an average of roughly $65,000 a year, while those 75 and older spend closer to $56,000 — figures that align somewhat closely with the median income data from the Census. In other words, for a typical retiree in their 70s, income and spending tend to be in rough balance.

That balance, however, can be fragile. Health care is the wildcard. Medical costs rise sharply with age, and even retirees on Medicare face meaningful out-of-pocket expenses through premiums, copays, and long-term care costs that Medicare doesn't cover at all.

A single health event — a hospitalization, a chronic diagnosis, or the need for in-home assistance — can disrupt a budget that otherwise looked comfortable. This is why many financial planners suggest building a health care cushion into retirement projections rather than treating Medicare as full coverage.

Where does retirement income come from?

Most retirees draw from several sources at once. Social Security is the most universal, but many retirees also rely on withdrawals from 401(k)s and IRAs, pension payments (for those who have them), and in some cases continuing part-time or freelance work.

Investment income — dividends, interest, or rental income — rounds out the picture for those with assets generating passive returns. The total depends heavily on how much was saved, what benefits were earned, and when Social Security was claimed.

What if your income falls below these figures?

If your monthly income is below the median for your age group, you have company — half of retirees in each bracket earn less. Several options can help close the gap.

If you haven't yet claimed Social Security, delaying even a year can meaningfully increase your benefit; the boost applies up to age 70. Federal and state assistance programs like Supplemental Security Income, Medicaid, and various utility and food assistance programs exist specifically for retirees with limited income. And for those still able to work part-time, earned income can reduce pressure on savings and delay the need to draw accounts down further.

A financial advisor can also help evaluate withdrawal sequencing, which affects both tax liability and how long savings last.

Bottom line

Retirement income tends to decline steadily through the 70s. Understanding roughly where you fall relative to your peers (and what's driving any shortfall) puts you in a better position to make adjustments to your plan to help you save money in retirement.

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