Average Retirement Income Research Summary (2026). Understanding the average retirement income in the US is vital for current and future retirees. Retirement income trends have evolved, and it’s essential to stay informed. Based on our latest research:
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US adults aged 65 and older have an average retirement income of $78,944.
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The median retirement income for those 65+ stands at $50,210.
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The average monthly Social Security benefit has increased to $1,972 in 2026.
For more detailed insights, check out our breakdowns on Income and Spending by Age | By State.
Sources of Retirement Income
Retirement income can be derived from various sources, with Social Security being the most prevalent. Here are some key statistics regarding retirement income sources:
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Social Security constitutes approximately 30% of the average retiree’s income.
It typically accounts for around 35% of a retiree’s pre-retirement income. The remaining 70% is derived from personal savings, pensions, and other investments.
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38.9% of individuals aged 60 and older rely solely on Social Security for their income.
This indicates a concerning trend, as many retirees are not leveraging their savings or pension plans. Only 28.5% have access to a defined benefit plan, while 35.2% have a defined contribution plan.
Sources of Retirement Income for Retirees
| Sources of Retirement Income | Share of Retirees |
|---|---|
| Social Security only | 38.9% |
| Defined benefit and Social Security | 16.2% |
| Defined contribution and Social Security | 15.5% |
| No defined benefit, defined contribution, and Social Security | 14.5% |
| Defined benefit, defined contribution, and Social Security | 7.1% |
| Defined benefit only | 4.2% |
| Defined contribution only | 2.0% |
| Defined benefit and defined contribution | 1.6% |
Retirement Income and Spending by Age
The age at which individuals retire significantly influences their retirement income and spending patterns. Delaying retirement can extend the lifespan of savings, but many opt to retire earlier. Consider the following facts:
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52.1% of Americans aged 55 and older are retired.
Retirement rates among those aged 55+ have risen since 2023. However, younger retirees are a smaller percentage; only 12% of those aged 55-59 were retired in 2026, compared to 20% in 2007. Conversely, 90% of individuals aged 75+ are now retired.
Share of Americans Who Are Retired by Age
Age Range Share of Americans Who Are Retired 40-44 1% 45-49 2% 50-54 7% 55-59 12% 60-64 34% 65-69 72% 70-74 85% 75+ 90% -
The median income for retirees aged 65+ is approximately 30% higher than that of those aged 75+.
The median retirement income for those aged 65+ is $50,210, while it drops to $39,500 for those aged 75+. This trend also holds true for average income.
Average and Median Retirement Income Per Year
Age Range Median Retirement Income Average Retirement Income 65+ $50,210 $78,944 65-74 $58,210 $88,525 75+ $39,500 $62,350 -
The average annual spending for retirees aged 65+ is $54,995.
When broken down by age group, younger retirees tend to spend more than older retirees. For instance, those aged 55-64 spend an average of $68,200 annually, while retirees aged 75+ spend an average of $46,800.
Average Retiree Spending by Age
Age Range Average Annual Spending Under 55 $72,500 55-64 $68,200 65-74 $54,995 75+ $46,800
Retirement Income by State
Retirement income varies significantly by state due to differing laws and costs of living. Below are the average retirement incomes for each state:
Average Retirement Income by State
| State | Average Retirement Income | Share of Households with Retirement Income |
|---|---|---|
| Alabama | $26,100 | 56.4% |
| Alaska | $38,500 | 64.0% |
| Arizona | $30,200 | 61.5% |
| Arkansas | $24,500 | 54.5% |
| California | $36,800 | 55.5% |
| Colorado | $34,200 | 60.2% |
| Connecticut | $34,000 | 66.0% |
| Delaware | $33,000 | 70.2% |
| Florida | $31,500 | 58.0% |
| Georgia | $29,500 | 56.2% |
| Hawaii | $34,500 | 63.0% |
| Idaho | $26,000 | 61.0% |
| Illinois | $33,000 | 60.0% |
| Indiana | $22,500 | 64.0% |
| Iowa | $24,500 | 57.0% |
| Kansas | $25,500 | 58.0% |
| Kentucky | $26,500 | 57.5% |
| Louisiana | $28,000 | 52.0% |
| Maine | $27,500 | 58.0% |
| Maryland | $38,000 | 66.0% |
| Massachusetts | $33,000 | 56.0% |
| Michigan | $25,500 | 64.0% |
| Minnesota | $29,000 | 65.0% |
| Mississippi | $24,000 | 50.0% |
| Missouri | $26,000 | 58.5% |
| Montana | $27,000 | 56.0% |
| Nebraska | $25,000 | 53.0% |
| Nevada | $33,000 | 54.5% |
| New Hampshire | $27,000 | 54.0% |
| New Jersey | $34,000 | 61.0% |
| New Mexico | $32,000 | 57.5% |
| New York | $33,500 | 59.0% |
| North Carolina | $26,000 | 58.0% |
| North Dakota | $24,000 | 52.0% |
| Ohio | $27,500 | 63.0% |
| Oklahoma | $25,500 | 52.5% |
| Oregon | $30,000 | 60.0% |
| Pennsylvania | $25,500 | 63.0% |
| Rhode Island | $28,000 | 59.0% |
| South Carolina | $27,000 | 57.0% |
| South Dakota | $25,000 | 50.0% |
| Tennessee | $24,000 | 56.0% |
| Texas | $28,000 | 51.0% |
| Utah | $29,500 | 63.0% |
| Vermont | $25,500 | 56.0% |
| Virginia | $38,500 | 63.5% |
| Washington | $30,000 | 62.0% |
| West Virginia | $22,000 | 61.0% |
| Wisconsin | $27,500 | 65.0% |
| Wyoming | $26,500 | 61.0% |
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Alaska has the highest average retirement income at $38,500.
Following Alaska, other states with high average retirement incomes include Maryland ($38,000), Virginia ($38,500), California ($36,800), and Colorado ($34,200).
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Indiana has the lowest average retirement income at $22,500.
Other states with low average retirement incomes include West Virginia ($22,000), Arkansas ($24,500), Iowa ($24,500), and Kansas ($25,500).
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Delaware has the largest share of households over 65 receiving retirement income at 70.2%.
Other states with over 65% of households 65+ receiving retirement income include Michigan (64.0%), Wisconsin (65.0%), Maryland (66.0%), and Minnesota (65.0%).
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South Dakota and Mississippi have the smallest share of households over 65 with retirement income at 50.0%.
Texas is also below 50% in terms of households over 65 receiving retirement income.
Retirement Income FAQ
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What is the average retirement income for a single person?
The average monthly retirement income for a single person in 2026 is $4,800. This equates to approximately $57,600 per year. However, the average monthly Social Security income remains around $1,972, totaling just under $24,000 annually.
This indicates that most retirees derive over half their income from sources beyond Social Security.
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What is a good monthly retirement income?
A satisfactory monthly retirement income for an individual is at least $4,000, while couples should aim for $6,000 or more per month. Retirees should ideally strive to achieve at least 70% of their pre-retirement income.
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Is retirement income taxable?
Retirement income is generally fully or partially taxable, depending on the state. For example, California does not tax Social Security benefits but imposes high taxes on other retirement income sources.
At the federal level, retirees may owe taxes on pension distributions and other periodic payments.
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What states do not tax retirement income?
There are 13 states that do not tax retirement income. Most of these states (9 total) have no income tax, while 4 offer specific exemptions for retirement income. Here are those states:
States with No Tax on Retirement Income
State No Income Tax/Retirement Income Exemption Alaska No income tax Florida No income tax Illinois Retirement income exemption Iowa Retirement income exemption Mississippi Retirement income exemption Nevada No income tax Pennsylvania Retirement income exemption South Dakota No income tax Tennessee No income tax Texas No income tax Washington No income tax Wyoming No income tax -
What types of income can you use in retirement to support yourself?
There are numerous sources of income available to support you in retirement, with Social Security being the most common. The U.S. Treasury Department administers Social Security, and applying is relatively straightforward. Additionally, consider these noteworthy options:
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Pension plans
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IRAs
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Qualified employer-sponsored retirement plans (QRP) such as 401(k) plans
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Brokerage accounts
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Savings accounts
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Certificates of deposit (CDs)
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Conclusion
Retirement income is a crucial consideration for anyone currently retired or planning for retirement in the future. In 2026, the average retirement income is $78,944, while the median income is $50,210. A significant portion of this income is derived from Social Security; however, the average annual payout of approximately $24,000 indicates that many retirees rely on additional income sources.
This reality may concern gig workers, part-time employees, and those with limited savings, but it’s never too late to begin saving. The more you save now, the better prepared you’ll be for retirement, whether you reside in a state with high or low retirement payouts.
References
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CNBC – Here’s where most Americans are really getting their retirement income
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CBPP – Top Ten Facts About Social Security
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Gallup – More in U.S. Retiring, or Planning to Retire, Later
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Pew Research Center – Amid the pandemic, a rising share of older U.S. adults are now retired
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Annuity – Average Retirement Income: What Is a Good Income for Retirees?
Author
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
