Average Retirement Income down

[HarryHawk]

What Are the Average and Median Retirement Incomes for 2022?​

Reporting on average retirement income can be tricky. The best income data does not include information about whether someone is officially “retired” or not. Retirement has no official definition — with many “retirees” still working. Retirement is more of a mindset these days. However, for these purposes, we’ll start with statistics for those over 65.

The average retirement income numbers for Americans over 65 seen below come from the US Census Bureau. The most recent data available is from 2020 and compiled in 2021. So, all of the economic changes we have seen over the last year are not necessarily represented in the data below.

The average retirement income has dropped. Despite weathering the pandemic, retirees have less retirement income now than the previous year. It remains to be seen if this is a temporary reflection of reduced spending or the reality.

The following uses the latest available data:

• Median Income — $46,360 (down from $56,632 in 2019)
• Mean Income — $71,446 (down from $84,153 in 2019)

https://www.msn.com/en-us/money/per...e-in-2022/ss-AAXJMWz?ocid=mailsignout#image=4

 

[Aunt Bea]

It could reflect the gradual shift from traditional defined benefit pensions to self-funded retirement plans.

In 2021 my income was high, but this year it's a negative number.

 

[Alligatorob]

I am not surprised, it has to happen. There are more retirees to be supported by fewer young working people. Just reality.

Of course everyone is different, those who have saved and invested wisely will be less impacted that those who could not or did not.

 

[hawkdon]

Whooeee I can only wish I earned that much, both in
retirement and while working.....LOL

 

[Harry Le Hermit]

I have to cry foul, as someone, such as the author of this piece, struggles with large spreadsheets.
This is 2020...



This is 2019...


Comparing apples to apples, indicates a median income for all 65 and over in 2019 of $47,357 and thereby a drop to $46,360 in 2020.
The 65 to 75 age group dropped from $56,632 to $54,058.

Freezing panes in large spreadsheets can prevent mistakes, in my opinion.

 

[Liberty]

Retirement income doesn't tell the whole story...if folks have a lot of saved/invested funds, they may not be taking out distributions or receiving interest on the money, and do not need to declare additional income accordingly.

 

[Mitch86]

Retirement income does not include unrealized gains from stock investments. Thus, many of us have far higher unrealized gains each year from investments. Plus, those of us who worked for government, have very high retirement pensions.

 

[OneEyedDiva]

I have to cry foul, as someone, such as the author of this piece, struggles with large spreadsheets.
This is 2020...

View attachment 222835

This is 2019...
View attachment 222836

Comparing apples to apples, indicates a median income for all 65 and over in 2019 of $47,357 and thereby a drop to $46,360 in 2020.
The 65 to 75 age group dropped from $56,632 to $54,058.

Freezing panes in large spreadsheets can prevent mistakes, in my opinion.

It seems the OP got his figures directly from the content in linked article.

Re OP: My retirement income has never reached $56,000 but this year it will be a bit above the 2020 median shown counting my investment income (even though I don't take the distributions). My very early retirement (50) cut down on what I receive from my pension and social security but I knew I could be comfortable in spite of that. My personal spending, including extras is about 72% of my income.

@Liberty "Retirement income doesn't tell the whole story...if folks have a lot of saved/invested funds, they may not be taking out distributions or receiving interest on the money, and do not need to declare additional income accordingly." Good points. I think stats should always be taken with a grain of salt.

 

[Harry Le Hermit]

It seems the OP got his figures directly from the content in linked article.

It was the author's (Kathleen Coxwell) data in the linked story, I was addressing... not the OP. The data cited in the article is incorrect. Income for the 65+ fell -2.1% from 2019, not -18.1% as given in the article. The drop for everyone was -1.7%.
2020 was a bad year for nearly everyone.

 

[OneEyedDiva]

It was the author's (Kathleen Coxwell) data in the linked story, I was addressing... not the OP. The data cited in the article is incorrect. Income for the 65+ fell -2.1% from 2019, not -18.1% as given in the article. The drop for everyone was -1.7%.
2020 was a bad year for nearly everyone.

Thanks for clarifying...I thought that may have been the case, but wasn't sure.

 

[HarryHawk]

OP only posted a direct quote from the cited link.