Retirees Can See How Their Earnings Measure Up

Older people need money too

Retired people may have worked for most of their lives.

Many people can enjoy their retirement years without working, but there are those who retire from regular employment and find that their Social Security and other retirement earnings are not enough to pay for their living expenses. They may find it necessary to get a job again to earn some extra income.

When people leave the work force, their expenses do not disappear. They still need money to live. Some expenses may go down such as if a house is paid for by retirement age, but there may be other expenses such as health care which could increase.

A story by Amy Legate-Wolfe for Moneywise was titled: “Here is the average income for retirees in the US — how do you compare?”

Americans hoping to retire soon aren’t likely to feel that the timing’s ideal. Even those with decades worth of savings are taking huge hits, no thanks to the triple whammy of inflation, high interest rates and a volatile stock market.

Yes, inflation is slowing down, rising slightly to 3.4% in December from 3.1% the previous month. But have incomes kept up? With fears of a pending recession and worries about the country defaulting on its debt, that question suddenly matters much more. And is there any hope Social Security can come to a retiree’s rescue?

Many Americans who are retired have Social Security payments as the foundation of their retirement income. Some live only on Social Security which may be difficult to do.

The average Social Security benefits in 2023 were $1,793.51 per month which comes to a total of $21,522.12 for the year. That is roughly $414 per week.

It is true that many retired people get much more than that per month in Social Security payments because they worked for years with high incomes. There are couples which are able to each collect Social Security payments.

The U.S. Census Bureau reported that Americans 65 years and older had a median annual income of $50,290 in 2022. The median income for all households was $74,580.

Most retirees may find that it is necessary to have other retirement savings or pensions on which to draw in order to make ends meet. They might have to find a part-time job or some other type of side hustle to bring in extra money. Retirees may be required to find creative ways to make their money go further or to cut expenses where possible.

Young people should plan accordingly and try to save as much money as possible for retirement or to have pensions.

Life should be enjoyable when people get to retirement age. They have worked hard for many years. They deserve to have comfort and security in their later years. Having enough money will make life more pleasant.

Thank you for reading.