According to the Retirement Readiness Survey by Fidelity, today people are saving and investing better for their age, which has resulted in improving retirement readiness across households in the country. This article examines the how people save for retirement, what the average retirement incomes today are and ways to boost retirement incomes.
How people save
Most adults get their average retirement income from the following sources:
Earnings: 23% of adult Americans have work income, with the median retirement income earned being $25,000 annually, according to the AARP. P.S.: This is the highest amount of any income source.
Assets: 63% retirees rely on assets, with the median asset income (householder/spouse is 65 years of age and above and receive asset income) for American households is $1,542. This number was 59% in 2008.
Pensions: Only a shocking 32% retirees today have pensions, a number which is expected to decrease further.
Social Security: 85% of people aged 65 years and above get Social Security, the average for which in the year 2017 is $1,360 according to a Social Security Administration factsheet.
Veteran’s Benefits/ Public Assistance: Around 7% retirees derive income from government sources.
Average and median retirement incomes 2017
This data below shows average retirement incomes for 2017 for households of different ages.
Age of Household Median Income Mean Income
Households (age 75 years and above) $30,635 $45,989
Households (age 65-74 years) $47,432 $68,905
Households (age 55-64 years) $62,802 $89,986
Boosting your average retirement income
These are the best ways to boost your average retirement income in the coming years:
Postpone retirement and start of social security: Postponing retirement date is a good move. You could also postpone collecting your Social Security benefits until you reach full retirement age or longer to get a big boost to your average retirement income.
Postpone savings withdrawals and maximize investments: Work longer and delay withdrawing your savings, and optimize and maximize your investment by planning.
Make budgets and stick to them: Boosting average retirement incomes doesn’t need high incomes necessarily; one simply needs to make budgets and stick to them. Downsizing and living thriftily are enough to boost retirement savings.
Research about retirement savings, needs and incomings: Research about and calculate how much you’ll exactly need for and during retirement. One can get accurate forecasts and plan your retirement investment accordingly.
The best thing will be get a retirement job. Remember the movie ‘The Intern’? That could be you!