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Reaching your 60s does not automatically mean your paycheck disappears. Millions of Americans continue working, while others begin combining Social Security, pensions, investment withdrawals, and other retirement income.
That makes the "average monthly income" for Americans over 60 more complicated. Income often changes sharply depending on age and employment status. Understanding those differences could help you judge whether your retirement savings are stretched thin or whether your current plan is reasonably close to what older Americans actually live on.
Here is what the latest federal data shows.
Editor's note: Unless otherwise stated, income figures are based on the U.S. Census Bureau's 2024 Current Population Survey Annual Social and Economic Supplement. Spending figures come from the Bureau of Labor Statistics' 2024 Consumer Expenditure Survey.
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The average monthly income for Americans over 60
The Census Bureau reports individual annual income, including earnings and certain retirement-related income. Converting its 2024 figures into monthly amounts gives us this picture:
| Age range | Median monthly income | Average monthly income |
| 60 to 64 | $4,016 | $6,259 |
| 65 to 74 | $3,004 | $4,923 |
| 75 and older | $2,531 | $4,009 |
Income falls with age, as fewer people remain employed and more rely on fixed retirement benefits. Many adults 65 and older rely on retirement income from a combination of Social Security, pensions, retirement savings, and other various sources.
Why is the average much higher than the median
The median represents the person in the middle: Half earn more, and half earn less. The average adds everyone's income together and divides it by the number of people.
A relatively small number of high earners and wealthy retirees can pull the average upward. That is why the median is usually the more useful benchmark for someone wondering what a "typical" older American receives.
For example, the average for people ages 60 to 64 is more than $2,200 per month above the median.
Working past 60 changes the picture
Older Americans who worked at some point during 2024 had considerably more income than the overall population at that age. Among working adults, the median monthly income was:
- $5,449 for ages 60 to 64
- $5,582 for ages 65 to 74
- $5,353 for ages 75 and older
Average monthly income ranged from about $7,919 to $8,333 across these groups. These figures include total income, not merely wages, so a worker could also be collecting Social Security, pension payments, or investment income.
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Nonworkers generally have much less coming in
People who did not work during 2024 had lower monthly incomes. For nonworking adults, the median monthly income is:
- $1,513 for ages 60 to 64
- $2,143 for ages 65 to 74
- $2,320 for ages 75 and older
"Did not work" is not identical to "retired." The category may also include people who were unemployed, disabled, caregiving, or out of the workforce for another reason. Still, it provides a useful approximation of what income can look like without employment earnings.
Where income after 60 may come from
An older adult's monthly income could come from several sources. Someone still working may receive wages, salary, bonuses, or self-employment earnings.
Retired adults may receive Social Security, a traditional pension, annuity payments, or withdrawals from 401(k)s, 403(b)s, and IRAs. Other possible income sources include investment dividends, interest, rental income, veterans' benefits, and part-time work.
A person could receive several of these at once. This is one reason income tends to vary widely at this age.
How income compares with typical spending
BLS data shows that households headed by someone 65 or older spent an average of $61,432 in 2024, or about $5,119 per month. Households ages 65 to 74 spent about $5,446 per month, while households ages 75 and older spent approximately $4,653 per month.
That said, these are household figures, while the Census income data measures individuals. Therefore, this isn't a direct apples-to-apples comparison. Still, the numbers show why retirement often requires more than one income source.
Housing is the largest expense
In many cases, housing takes up a large chunk of retirees' budgets. Households headed by someone over 65 or older spent an average of $22,193 on housing in 2024, which is around $1,849 per month. This means that housing accounted for around 36% of their total budget.
Even retirees who no longer have a mortgage often pay property taxes, insurance, maintenance, utilities, and homeowners' association fees. Downsizing can occasionally reduce some of these expenses. However, selling and moving come with their own costs that should be considered.
Health care takes a growing share of the budget
Adults 65 and older spend about $7,799 per year on health care. This means that health care spending represents nearly 13% of their budget. This percentage rises to 14% for households headed by someone 75 or older, meaning that health care costs often rise with age.
These averages include health insurance, prescriptions, medical supplies, and other out-of-pocket costs. Actual costs can be much higher for some individuals, especially those with long-term care needs or chronic conditions.
How to stretch or increase your monthly income
Someone approaching retirement may be able to improve their monthly cash flow by working a few more years or taking on part-time work, which may allow them to delay Social Security. Reviewing old retirement accounts can also help uncover funds that have been overlooked or invested too conservatively.
On the spending side, focus on recurring costs, which can quickly eat into a budget. Housing, insurance, vehicles, subscriptions, and debt payments usually offer more potential savings than reducing small, one-time purchases.
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Bottom line
After 60, monthly income varies widely between households. Some individuals may still be working, while others may be drawing on Social Security, a pension, or retirement accounts (or all three).
Before making major changes, calculate the gap between your guaranteed monthly income and your essential expenses. People living on just Social Security may also qualify for programs that reduce Medicare premiums, prescription costs, food expenses, or utility bills, which can be just as helpful as increasing your monthly income.
FAQs
Is Social Security enough to live on by itself?
For most people, it is tight. The average benefit sits below what federal data shows older households typically spend each month, so many retirees supplement it with savings, a pension, or part-time work. People living on Social Security alone may also qualify for programs that lower Medicare premiums, prescription costs, food expenses, or utility bills.
Where does income typically come from after age 60?
After age 60, income may come from a mix of sources depending on whether someone is still working or retired. It can include wages or self-employment income, Social Security benefits, pensions, annuities, withdrawals from retirement accounts like 401(k)s and IRAs, investment income, rental income, veterans' benefits, or part-time work. Many older adults rely on several income sources at once, so monthly income can vary significantly from person to person.
What is the average retirement income in the US?
There is no single figure, because average retirement income depends heavily on age and whether a person is still working. Federal data shows median monthly income drops as people move from their early 60s into their 70s and beyond, and retirees who keep working earn considerably more than those who do not. Most retirees reach their total by combining several sources, such as Social Security, a pension, and withdrawals from retirement accounts, so the average retirement income for any one household can look very different from the next.
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