If you’ve started to make planning for retirement, you’re probably wondering how much you need to save to live happily into old age.
When you retire, you’ll be given a certain income per year from your state pension – but is this enough to meet your retirement lifestyle goals?
Read on to learn more about the average retirement income for a couple.
Median income in 2019
In 2019, figures from the US Census Bureau show that median income for a household aged 65 to 69 was $54,124, while for households aged 69 to 75, it was $46,797, and for households aged 75 and older, it was $31,893. It’s important to note that this data doesn’t specify whether a person is retired or not, but we can assume by the ages in the study that the majority are retired.
Average retirement income by state
The state you live in may affect your average retirement income, depending on the cost of living and the job opportunities available. You may have to work for longer to be able to afford a retirement in your state, and even then, your retirement income might be lower simply because of your zip code.
Average retirement income by age
Average retirement income may also be affected by your age. If you were born earlier, you’ll receive higher state retirement benefits than if you were born slightly later on. You can do a quick Google search online to find out exactly what benefits you can expect to receive by age.
Saving for retirement
It’s no surprise that so many people choose to take saving for their retirement into their own hands, rather than relying on state benefits to get them through. It’s recommended that you start saving for retirement as early as possible if you want to live comfortably when you quit your job for good. Even if retirement is still years into your future, start saving now and you’ll more than reap the benefits later on in life.
There are a number of different savings options for retirement, some of which are riskier than others. The most common ways to save for retirement in the US include the following:
A savings fund
Simply adding money to your savings account might not bring you any decent interest, but it’s a guaranteed source of retirement income for when the time comes around. If you’re too nervous to give investing a go, a savings fund might be the only retirement savings option you consider. However, everyone should have at least some money stored away in a safe savings account just in case.
Investing in stocks, bonds or real estate
You can also choose to invest your retirement money for better returns, at a higher risk. Real estate is the lowest-risk investment, and can provide you with a solid source of retirement income. Stocks are the highest-risk option of the three, and bonds are the middle ground. You might want to look into an investment plan if you’re not too comfortable with the stock market.