Observations on life

How does your retirement income stack up?

Looking into this number was triggered by double checking the taxability of Social Security. What these numbers show is that looking at either mean (average) or median (mid point of all incomes), most households will have some of their Social Security benefit subject to income tax.

Keep in mind the MAGI (1/2 Social Security benefit + other taxable income + tax-free interest income) only has to be $44,000 a year for a couple for 85% of the Social Security benefit to be taxable. An interesting amount given that in theory beneficiaries paid for half of their benefit with after-tax income.

Following is from NewRetirement

What is the Average Retirement Income and Median Retirement Income?

The best data about average retirement income comes from the US Census Bureau.  The most recent data available is from 2016.

So the small gains suggested by recent research are not necessarily represented in the data below, but these numbers should be very close to reality for the average household:

Households Aged 55-64

Median Income $ 62,802

Mean Income $89,986

Households Aged 65-74:

Median Income $47,432

Mean Income $68,905

Households Aged 75 and Older:

Median Income. $30,635

Mean Income $45,989

SOURCE: Data is summarized from the US Census Bureau’s Current Population Survey(CPS) Annual Social and Economic (ASEC) Supplement.  The CPS is a joint effort between the Bureau of Labor Statistics and the Census Bureau.

Advertisements

1 reply »

  1. .

    Because I have zero debt, I can live comfortably on a relatively small income.

    Since age 62, I have been able to live on SS plus a small distribution from my IRA while still staying below the IRS tax threshold. Not only have I paid zero income tax the past several years, I didn’t need to file tax returns. That all comes to an end in a few years when I turn 70 and forced to take out much larger IRA distributions which will cause my Social Security income to also be taxed. Soon there will be a whole lot of government hoops I will have to jump through. It’s really unfair to suddenly burden old people with those draconian tax laws. For the first time ever, I will probably have my taxes done professionally… bummer.

    It’s not paying taxes that bothers me so much… it’s paying taxes to the “enemy”… to a government whose policies contradict my values.

    .

    Like

What's your opinion on this post? Readers would like your point of view.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s