What Is the Average Retirement Income for a Single Person?

What is the average retirement income for a single person?

That’s a pretty interesting question.

And I’m going to answer it from a couple different angles.

But let me say this right up front.

There is no perfect answer.

Key Takeaways

• There is no universal “average” retirement income that fits everyone
• Retirement income is based on your income floor and lifestyle needs
• Common income sources include Social Security, pensions, and RMDs
• Many people underestimate how much they actually need
• Longevity risk is real and increasing due to medical advancements
• The goal is to create income you cannot outlive

It’s Not About the Average, It’s About You

Everyone wants a number.

“What’s the average?”

“What should I be shooting for?”

That’s not how this works.

Retirement income is customizable.

It comes down to what you are accustomed to living on and what you want your life to look like.

Start With Your Income Floor

The real starting point is your income floor.

Write it down.

What do you need every month to:

• Pay your bills
• Cover your debts
• Maintain your lifestyle

Then add in what’s already coming in:

• Social Security
• Pension income, if you have one
• Required Minimum Distributions from your IRA
• Any other consistent income

That’s your baseline.

What the “Average” Looks Like

If you want a rough reference point, median household income in the U.S. is somewhere in the $50,000 to $60,000 range depending on the data.

But that’s two incomes.

And that number doesn’t tell you anything about:

• Your lifestyle
• Your goals
• Your health
• Your spending habits

So using that as your target can be misleading.

Two Ways to Look at Retirement Income

You can look at this a couple ways.

One way is simple.

Take what you have saved.

Estimate how long you’re going to live.

Divide it out.

If that monthly number works for your lifestyle, you’re fine.

A lot of people can do that.

The Problem: Longevity Risk

But here’s the issue.

We’re living longer.

And we’re going to live even longer.

Artificial intelligence is speeding up medical breakthroughs.

GLP-1 drugs are changing health outcomes.

All of this means one thing:

Life expectancy is increasing.

And that creates what the industry calls:

Longevity risk.

The risk of outliving your money.

Why Lifetime Income Matters

That’s where guaranteed lifetime income comes in.

Some people are fine drawing down their assets.

But others want:

• A consistent monthly paycheck
• Income they cannot outlive
• A pension-style structure

That’s what annuities can provide.

Don’t Underestimate What You Need

Here’s something I want you to think about.

A lot of you are underestimating your number.

You’ve spent your entire life:

• Grinding
• Saving
• Scrimping

Now you’re trying to do the same thing in retirement.

Why?

You’ve earned the right to live better.

Travel more.

Eat better.

Upgrade your lifestyle.

You Have to Learn to Spend

This is the part no one talks about.

You have to teach yourself how to spend money.

You’ve spent decades saving.

Now you’re afraid to use it.

That doesn’t make sense.

If you’ve won the game, why are you still playing?

Build Income You Can’t Outlive

At the end of the day, the goal is simple.

You want income that:

• Covers your needs
• Supports your lifestyle
• Lasts as long as you do

That’s the target.

Not the “average.”

What You Should Do Next

Once you’ve defined your income floor, the next step is understanding:

What would it take to create income you cannot outlive?

That’s something you can actually model based on your age and goals using our annuity calculators here: https://www.stantheannuityman.com/ annuity-calculator/

The Bottom Line

There is no average retirement income that works for everyone.

The right number is:

What you need to live the life you want.

If you focus on your income floor, account for longevity, and build income that lasts, everything else falls into place.