Retirement Retirement Planning

Here’s What Retirement Could Look Like for a 65-Year-Old With Average Savings, Plus Social Security

The average monthly retirement income may be less than you realize.

By Catherine Collins , Edited by Laura Hohenstein

Updated Sept. 29, 2026

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If you're wondering what the golden years look like for an average 65-year-old with a retirement plan and Social Security, here's what their average income can be. Of course, some retirees will take home more, and some will take home less. Additionally, where you live and your spending habits will also impact your available cash flow in any given month.

However, looking at average incomes can help those approaching retirement understand what their future may look like. Those with a few extra years before retiring can take extra steps to prepare if they feel behind on their savings, too.

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The average retirement account balance for those aged 65 to 69

The most recent data from Fidelity shows that the average person between 65 and 69 has an average 401(k) balance of just under $260,000. In reality, most retirees in their 60s likely have less than that saved, since the average balance is typically driven up by high earners who max out their 401(k)s. If a retiree withdraws 4% of their portfolio to live on, which is a common metric, that equates to $10,400 annually or $867 per month.

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The average Social Security check adds to the total

Most people will not be able to live on $867 a month, but fortunately, many people receive Social Security checks in addition to what they've saved for retirement. The average Social Security check is just over $2,000 per month, according to the Social Security Administration. That equals an additional $24,000 per year for retirees. If you add that to the $10,400 per year from retirement plan withdrawals, that equals a monthly income of about $2,867. Though it may not provide much extra wiggle room for those who still pay a mortgage or rent, it can be enough to live on for retirees who stick to a budget and don't have significant housing costs.

Married retirees can create more cash flow by combining income

If retirees are married and both spouses have Social Security income and retirement plan balances, living in retirement can be even more comfortable. If each person receives an average of $2,867 each month, that's approximately $5,734 combined. For many couples, depending on their expenses and where they live, that can provide enough cash flow to afford necessities and some extras too.

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Retirees still need to consider taxes when creating a budget

Of course, retirees will also need to factor in taxes. They'll need to pay federal taxes on that $5,733 they may receive as a married, retired couple. In most states, they'll also have to pay state income taxes, though there are nine states that don't charge state income taxes and a few others that exclude retirement income from state taxes. Retirees may also have to pay property taxes, even if they own their home outright, and sales tax. That's why it's important to track spending and stick to a budget in retirement, as an amount that seems livable at first can quickly drop once you make necessary payments.

Retirees' average income is less than average spending, according to data

The Bureau of Labor Statistics tracks consumer spending. Some of its most recent 2024 data shows that the average person between the ages of 65 and 75 spent just over $61,000 in 2024. That's much more than the projected $34,400 per year for the average 65-year-old retired individual. Of course, the BLS data shows average numbers, meaning some retirees may spend significantly more while others may spend less. How much retirees spend depends entirely on their spending habits, where they live, and their healthcare needs.

Healthcare costs can be more than retirees expect

Even for the best-prepared retirees, healthcare bills can be a shock. Medicare may not cover everything, and many retirees are still responsible for paying for Medicare Part B premiums. Fidelity research found that the average 65-year-old will spend approximately $185,500 on healthcare costs in retirement. That's because Medicare doesn't cover pricey expenses like long-term care. There may also be copays and prescription medicine costs.

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If you need help, get professional financial advice

If you're not sure whether or not you're prepared for retirement, make an appointment with a financial advisor. A financial advisor can help you make big decisions, like the best age to claim Social Security and what percentage to withdraw from your retirement accounts to optimize your taxes. They can also take the time to get to know your goals for retirement and help you create a financial plan to achieve it.

Bottom line

The average 65-year-old may not have enough retirement income to afford their lifestyle, especially if they still have a rent or mortgage payment. However, retirees who are married and have Social Security income in addition to retirement plan income can likely enjoy a modest but liveable retirement. If you're worried about not having enough saved for retirement or that past financial mistakes may prevent you from retiring on time, speak with a financial planner who can help you take the best next step for you.

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