Retirement incomes can be obtained from various sources including pensions, investments, and retirement plan packages. Each year the average retirement income in each area is calculated so as to understand the cost and quality of living that the retired population is experiencing.
What is meant by average retirement income?
Sometimes referred to as “mean retirement income,” the average retirement income in 2017 of an area is nothing but the sum of the incomes of all the households in the area divided by the number of households in that area. This number can be skewed quite easily if a few houses have an extremely high income.
The average retirement income in 2017 also takes into account age ranges so as to understand how each age group is faring and whether their income is, on average, sufficient to lead a healthy life.
What is the average retirement income in 2017?
The average income has decreased over the past few years and is currently at its lowest. According to sources, it has been reported that several retired couples barely earn enough to make ends meet. Several couples also sacrifice essential goods and services in order to survive.
The average retirement income in 2017 for each age group is as follows:
- 55–64 years: $89. 986 per month
- 65–74 years: $68, 905 per month
- 75 years and above: $45, 989 per month
As is evident, this income is barely enough to cover basic expenses. Unforeseen expenses such as medical emergencies can thus be a large strain on these households.
Although a large number of retired households are barely getting by, it has also been reported that a large number of individuals nearing retirement age have begun saving and investing in preparation for retirement. The level of retirement readiness is thus improving.