What Is a Good Monthly Retirement Income?
Written by
Aja McClanahan
Edited by
Joe Evans
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If you’ve ever wondered what a good monthly retirement income is, you’re not alone.
The short answer is that most experts say you should aim for 70% to 85% of your pre-retirement income to maintain your lifestyle. That usually works out to $4,000 to $6,400 per month for the average retiree — enough to cover essentials while leaving room for comfort and leisure.
But the right number for you depends on your lifestyle, location and health care costs. Here’s how much retirees typically earn, what you’ll likely need and where that income will come from.
Quick Facts: Monthly Retirement Income Benchmarks
| Category | Average Monthly Income | Key Notes |
|---|---|---|
| Individuals | $3,900 to $4,200 | Median U.S. retiree income |
| Couples | $5,200 to $6,300 | Median $5,266; mean up to $8,300 |
| Social Security | $1,907 average, up to $4,873 max | Depends on claiming age |
| Replacement Goal | 70% to 85% of pre-retirement income | Varies by lifestyle and location |
| Healthcare Costs | $315,000 average lifetime cost | Depends on the claiming age |
What Retirees Earn on Average
Understanding what other retirees live on can help you gauge your own readiness.
According to U.S. Census Bureau data, the average individual retiree earns about $4,191 per month, while couples bring in a median of $4,738 per month. However, the mean can rise to $6,300 to $8,300, since higher-income households pull up the average.
Income Trends by Age
Retirement income tends to drop as people age. By age 75, the average household income falls to around $3,994 per month, mainly due to reduced withdrawals and survivor benefits.
Social Security remains the largest single source of income for most retirees — accounting for about 30% to 40% of total income. That means you’ll likely need to rely on savings, investments or part-time work to make up the difference.
How Much Monthly Income Do You Actually Need
A good monthly retirement income maintains your lifestyle without draining your savings too fast. That’s where the income replacement rate comes in.
Most financial planners recommend replacing 70% to 85% of your pre-retirement income. For example:
- If you earned $80,000 per year, you’d target about $56,000 to $68,000 annually in retirement.
- That equals $4,667 to $5,667 per month.
Why You Might Need More — or Less
Your ideal replacement rate depends on several factors:
- Fewer expenses: You’ll no longer pay payroll taxes, retirement contributions or commuting costs.
- Higher medical spending: Health costs can rise sharply — Fidelity projects $315,000 in lifetime healthcare expenses for a 65-year-old couple.
- Location: Retiring in a high-cost area like California could mean you need 25% more income than someone in Florida or Texas.
Where Your Retirement Income Will Come From
A strong retirement plan includes several income sources — not just one. Here’s a breakdown of the most common ones:
1. Social Security Benefits
The average monthly Social Security benefit is about $1,907 in 2025, but if you delay claiming until age 70, your check can grow up to $4,873 per month.
Delaying benefits gives you a guaranteed 8% boost for each year you wait past your full retirement age — one of the most reliable ways to increase lifetime income.
2. 401(k)s, IRAs and Pensions
Traditional pensions are less common today, but for those who have them, the average monthly benefit is roughly $900.
For most retirees, investment accounts do the heavy lifting. Using the 4% rule, a $1 million portfolio could provide about $40,000 per year, or $3,333 per month, in sustainable income.
Vanguard’s 2024 Retirement Study found that retirees who automated their withdrawals or rebalanced annually were 60% more likely to avoid depleting savings early.
3. Other Income Streams
Many retirees supplement their income through:
- Part-time work (about 20% of retirees still work, according to the BLS data)
- Annuities that guarantee steady payments
- Rental or investment income, especially for retirees who own real estate
Having at least three sources of income can dramatically improve financial security and reduce reliance on the market.
How To Close the Gap If You’re Falling Short
If your projected income doesn’t meet your retirement needs, there are ways to catch up without overhauling your entire plan.
Delay Social Security
For each year you delay collecting benefits past full retirement age, your monthly payout increases by about 8%, up to age 70.
Work Part-Time
Working even 10 to 15 hours a week in retirement can offset withdrawals and preserve your savings longer — plus it helps you stay active and social.
Rethink Withdrawal Strategies
The 4% rule is a baseline, but some experts suggest a more flexible approach — withdrawing less in bad market years and slightly more when markets perform well. This adaptive method can help extend portfolio life by up to five years.
Planning Tips for Couples and Individuals
Every household’s retirement income plan looks different, but these strategies can make yours more resilient:
- For Couples: Coordinate Social Security claiming to maximize survivor benefits.
- For Individuals: Consider long-term care insurance and annuities for a stable income.
- For Everyone: Use a “bucket strategy” — keep one bucket for essentials (Social Security, pensions), another for discretionary spending (investments) and a third for growth to combat inflation.
For more personalized estimates, try the GoBankingRates Retirement Calculator to model your monthly needs and savings progress.
Final Take to GO: Stay Flexible — and Build the Retirement Income That Works for You
There’s no single “good” monthly income for retirement — it’s about balance. The key is understanding your expenses, knowing your guaranteed income and creating a plan that supports your goals for 20 to 30 years ahead.
If you’re unsure how close you are to your target, start by running your numbers through a retirement calculator or meet with a fiduciary advisor to create a sustainable withdrawal plan.
Your retirement should give you peace of mind, not stress. Start planning today so your income — and your confidence — last as long as you do.
FAQ
Here are the answers to some of the most frequently asked questions about monthly retirement income goals and how they work:- What's the average monthly retirement income for a couple?
- On average, retired couples have a monthly income between $5,200 and $6,300, but it can vary widely.
- What is a reasonable monthly income target?
- A good rule of thumb is to aim for 70 percent to 85 percent of your pre-retirement income. You should calculate your target based on your lifestyle preferences and financial circumstances.
- How long do my savings need to last?
- Your savings need to last for your entire retirement, which could be 30 years or more.
- How can I boost income if I'm short?
- You can increase your retirement income by delaying Social Security, working part-time, creating income from a side hustle or purchasing an annuity to generate a guaranteed source of income.
Information is accurate as of Oct. 28, 2025.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- U.S. Bureau of Labor Statistics "38.3 percent of employed older Americans worked part time in 2024"
- Vanguard "How America Saves 2024"
- Pension Rights Center "Income from Pensions"
- U.S. Social Security Administration "Delayed Retirement Credits"
- U.S. Social Security Administration "What is the average monthly benefit for a retired worker?"
- Fidelity "Fidelity Investments Releases 2025 Retiree Health Care Cost Estimate, a Timely Reminder for All Generations to Begin Planning"
- U.S. Social Security Administration "Fast Facts & Figures About Social Security, 2024"
- U.S. Federal Reserve "Economic Well-Being of U.S. Households in 2023"
- Vanguard "5 steps for retirement planning"
