Average Retiree Income by Age | How Do You Compare?
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- Опубліковано 10 чер 2024
- This video discusses the average retirement income by age categories, 65 to 74 and 75+. The video uses data from the 2022 US Census, so it is both recent and quite accurate. The video also breaks down the three most common sources of retirement income for most people and highlights the "average" percentage each income stream contributes to a retiree's overall income.
LINKS DISCUSSED IN THE VIDEO:
2022 US Census Data Income Levels
www.census.gov/topics/income-...
Retirement Learning Center - Income Type in Retirement:
retirementlc.com/sources-of-r...
OTHER IMPORTANT LINKS:
FREE Retirement Ready Checklist:
HolySchmidt.com/Checklist/
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Geoff's Facebook Page
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Federal Reserve Board Survey of Consumer Finances:
www.federalreserve.gov/econre...
Social Security Administration Application for Benefits
secure.ssa.gov/iClaim/rib
Current Social Security Cost of Living Adjustment
www.ssa.gov/cola/
Social Security Payment Estimator
www.ssa.gov/benefits/retireme...
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.
Also Check Out: “Average Net Worth by Age 62” ua-cam.com/video/fPIFU1woous/v-deo.html
When you say "income" are you talking about gross income or net income? You do a good job of explaining the details but as far as income goes there is a big difference between gross and net
I'm 91 years old and retired when I was 68. I have a federal pension and SS amounting to $47,000 a year. I live alone. I own my home and have no mortgage. I have no debts. My living expense is less than $40,000 a year. I'm doing better than the average person. Planning your life is critical.
What do you spend 40 grand on.
@@anthonyrthomasuk Food 5K, Household 5K, Medical 5K, insurance 10K, Tax 5K, Gift 7K, Entertainment 3K. Being old means more money spent on medical and insurance. Gift ls mainly assistance to kids.
Well done!
Never work in the private sector. Get a Federal job. It is like stealing candy from a baby.
@@shareurtube My pension is from Federal Civil Service, but 20 of my 45 working years was in the private sector. 5 years in military, 20 in civil were in the public sector.
It's amazing to see AMC doing well after all the doomsday analyses from naysayers. The stock market is a device for transferring money from the impatient to the patient - warren buffet. It's good to remind people of this right now; you buy on fear and sell on greed or just hold through it all for the long term. It’s easy but lots of people forget.
@@AustinWalker67 I have been thinking about how to grow my reserve by 100% or more within months. I will be grateful if you can give tips or anything on how to make good market picks and how I can get my portfolio diversified and balanced to meet up my target...
@@AustinWalker67 That's great. How do I reach her, you got any possible means of getting more info on her services?
@@AustinWalker67 I just looked up this person, and surprisingly she seems proficient. I thought this was just some overrated BS, I appreciate this.
@@MaryOlson7 Alice Marie Coraggio is quite popular on Bloomberg I doubt if there is anyone who is serious about stock trading that doesn't know her. She has helped me quite a few times in growing my portfolio and it was blissful without any setbacks. she is a tough person in an industry that demands clairvoyance
Scam alert
We experienced the peak of our era, and now it is gone. Recession is tanking everything including 401K. My retirement equities portfolio of $750K is in the reds. I keep losing because of inflation. This world will fall to the corrupt rulers in the same way that Rome did. I'm sorry if you're thinking about retiring and you're worried that your pension won't be enough to meet the rising cost of living. Horrible foreign policies everywhere, bad regulatory policy, bad fiscal policy, and bad energy policy.
For retirees and those close to retirement, I believe it's particularly challenging. All those years of labor only to lose it all to a problem you weren't responsible for, my regrets to everyone retiring during this time.
I'm very worried about the future and where we're all heading, especially in terms of money and how to get by. I'm considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
After the pandemic, things became extremely difficult, which is precisely when I sought a consultant's counsel. I've been investing on my own for nearly 3 years and have built up a stagnant reserve of $280K to $570K in just over 24 months.
I’m in dire need of guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?
Thanks for sharing this. I did my own little research, and your advisor looks advanced and experienced. I wrote her and dialed her twice but she didn't pick up so I scheduled a phone call.
I've totally stopped believing in the S&P to deliver any significant return, especially this period. I'm thinking of redistributing my portfolio to other stocks, but I hardly know which ones will do well. Are there any ones positioned to grow?
Truth is that the market ain't quite stable at the moment, but if you make the right picks, you could make killer riches very quickly, although such profit usually needs expertise, as in hedge funds or financial managers. I personally prefer the latter.
This is accurate. I worked as a financial advisor with Merrill Lynch and then as an independent financial manager. I have seen really great profits that can be made by picking the right stocks.
Please, do you know anybody with whom I could work with?
I'm careful about making such recommendations. But one person I know who has established a good track record is Sharon Louise Count and I think she's got a contact website or something.
Most hedge funds under perform the index over time. Well documented. Google it.
Wow. I feel lucky. Thanks for the data.
Thanks for patting yourself on the back. Some of us haven’t been so lucky, through absolutely no fault of our own.
Are the income examples gross or net? Thank you, I enjoy your channel!
Thanks for doing analysis for single people. Us lonely people are so often overlooked.
LOL. I had a laugh from the lonely statement. But agree I like seeing numbers for singles too.
I'm alone, but not lonely, and I also appreciate Geoff making the distinction.
Old single people ?
Is that a Thing ?
Being single doesn't make you lonely.
It truly is. A good number of us wanted nothing to do with the contract of marriage.@@jimmyhvy2277
Great Video, Question are theses pre tax or after tax amounts?
Thank you
I'm single and your numbers are quite accurate! You see how much deep do-do I am in with this insane inflation!
I retired at 58 as a high school teacher for 32 years. My financial advisor got me to 63k a year after taxes and inflation. 😊 No debts, own my home as well.
Any chance you can use the Trimmean function in excel to remove the outliers.... $750K is a lot and I think that could be skewing your average
You seem to have left out regular old investments as a source of income for retirees. For every $100K you have in your simple brokerage account, you will get about $4000-5000 in additional income, if you invest for income. Obviously most people who have money in a brokerage account are rather well-off, but it's fairly common. If you are one of these people, you income is likely to go up as you get older, not go down.
You are correct. If you have $500,000 and let the interest compound, after 10 years you will have over $800,000.
No matter how I sliced it, I’m now 63, the numbers didn’t work for a comfortable retirement, so: bought a house in Mexico (paid cash) selling my house in the U.S. and will bank the proceeds. In the end I can retire in Mexico with zero debt in a house that’s paid for. Live easily off social security, dip into my retirement 401k only in emergencies, and enjoy retirement.
i'm going to off grid land in tn. i hear ya. let the world take of the world and live simple. we HAVE EARNED OUR TIME...
@@tpowell3776 my version is a cash out of the market and off grid in TN. good luck to you and yours!! love the beach, but love my trees and mountains...
Looking at your figures for median income. I'd say my income falls in the small to tiny category. On the bright side, my plan to work until I expire looks completely achievable! 😢
I’m sorry 😢
Been working 40yrs, looking at 10 more. Happy boomers ahead of me paved the way for their retirements. Now they vote against unions to pad their dividends. Don't mention means testing for Social Security or they freak out.
@@thatguyoverthere8355Who the hell do they think is going to fund their pension plans. One only has to look at the Teamsters Central States pension fund to see the results of an underfunded pension plan.
@@thatguyoverthere8355/ Means test for SS , imagine that ... 😵💫💨
@@thatguyoverthere8355…It is means tested by the bend points used to pay it out along with the way it is taxed at 0%, 50% or 85% on withdrawals..
Interesting to see the different income levels, especially the variation between mean and median. Not gonna lie, I first saw the mean and thought I was behind until I quickly figured out that it wasn't the median...whew! Ultimately, it's a little meaningless as income, especially in retirement, is somewhat malleable...we all decide how much additional income to take and in the case of Roth IRAs, distributions aren't even taxable. Personally, we don't need much income so no need to increase our income and in fact we're still sporting a 50+% savings rate as we're still accumulating for the tax savings alone mostly at this point and we've got 15 years to go until FRA.
Finishing year two of retirement. Haven’t needed to touch any of my investments. Nice pension plus high social security. Still make enough to invest a little each month. I’m heavily invested in lithium, both hard rock and DLE. When the companies start production I expect the stocks to go 4x to 20x. EVs are the future…might as well capitalize on them. Look at what happened to Piedmont when they started production…PLL went from $5 all the way up to $80.
One reason the houses are more than double is the singles often have to spend 100% of their income, while couples ( and some triples which have a parent in there) simply dont spend all the income, and thus they grow post retirement investment accounts. When you met a 70ish couple with $110k income is a paid off home they just dont use all that money they may use $60k and thus they buy $50k in stocks and bonds which raise future income an additional $$6k/year.
Paid off home still means you have to pay the monthly escrow, which in many cases, is a lot more than a mortgage payment!
@@billmulvihill8452 By escrow do you mean taxes??
I agree. We don’t drive near as much and only use about half our income for everything from utilities, food and taxes. We get a big property tax break where we live because of our age. We have a small rental that pays for things like property taxes and utilities but we can survive well without anyone living there. We don’t owe the bank anything. Now I’m going to go pick produce from the garden for our evening meal of sockeye salmon I caught last week.
Good informative video. BTW, are these figures gross or net? Because that can make a big difference when it comes to the money you can actually spend. If these figures are before taxes, then it's even worse. Thanks.
These figures appear to be gross, before taxes.
@@craftsmanctfl3493 Thanks for clearing that up
This may not be typical, but what about veterans pensions or VA disability? Perhaps you can do a video on the comparative market value of the non taxed disability checks.
No one ever includes us in these videos
SSD is not applicable to retirees, as it automatically turns into retiree Social Security at age 62.
@@commonsense6967 Veterans’ disability pensions have nothing to do with SSD.
Thank you for clarifying mean vs median. People get so fixated on the average (mean), when what they're really looking for is the typical (median)
Curious why the income would go down over retirement age. Now I need to re-watch the video to see if you mention this.
Inflation. Most pensions don't fully keep up with inflation,so pensions that started paying many years ago tend to be smaller than today's starting pension. Hopefully the older pensioner owns their house which would to some extent act as an inflation "hedge".
This is a great video, but I would liked a single chart at the end of the video with all of the numbers. Also, when you say “annual income” are you talking “adjusted gross income” (part of which may exclude things like tax free investments and non taxable (ROTH) retirement accounts.
It’s very likely all income, not AGI.
Whenever I see a senior working I always wonder if they are working because they want to or because they have to work.
Mainly because they have to.
I'd say it is because they have to to make ends meet. Some of those folks I see in Walmart definitely look like they'd be better off in their rocker. Sad but true.
I often think the same!
Some enjoy being around with other people. They get lonely and feel useless at home.
They have to. Because of pride they will tell you that they're working because they get bored.
I’m in better financial shape than I thought!
That all depends on your spending habits. If you spend half of your income no matter what it is you will be doing very well. If you spend double your income well things won't end well.
What you make is only half of the equation.
Good data, however, is that how much you earn, it is how much you spend
Since he uses the word "income", I take that to mean the amount of $ each respective example recieves/draws from investments/SS/PT work.
@@livingontheedge8680You missed the point.
@@edennis8578 How so? Income does equate to spending.
Oil and gas partnerships usually are MLPs. And they are not what I would consider rare.
Please do a segment on 1099 contractors. I and my wife have our own LLC and spin off 2 1099 each year. We are boht 65 years old and plan on working until age 70. We have low 6 firgure assets and earn about $100k each per year.
Kinda surprised that passive income through property rentals isn't something that is more prevalent. I wish I had that situation, but I know a few retirees that have that income as part of their retirement.
And then there is the headache of dealing with rent properties and a couple of friends of mine could write a book about those woes.
Since so many landlords took a hit from tenants who weren't required to pay during COVID, I suspect that people have soured on investment properties.
This will be my situation. A few rental units will replace my income. I have a management company because it's worth it to avoid the direct management headaches!
Geoff. Is there a way to report these scammers that pollute the comments sections of your and other great financial videos with threads that end with recommendations for a specific financial advisor?
You can report those comments to youtube but i don't know if youtube will actually do anything about them. Just point your mouse over the comment you want to report. You will see three little dots show up to the right of the comment. Click on those three dots.
Thank you for this helpful information. At first, my projection as a not-yet-retired individual, I felt way off, on the low end. Then I realized that your numbers are in terms of Gross Income, right? I express my income projections in terms of Net Income accounting for estimated future tax rates, reductions in Social Security funding, and market down turns. Gross Income is somewhat helpful, median more so than mean. However, Net income is more important to me as a soon-to- be-retiree, about 3 to 5 years away.
I wanted to hear an expert's opinion on this as well. Currently retired and I have most of my 401k contributions of $200K going into small cap and utility funds, because these seem to be at a "discount" right now.I'm hoping this is a valid thought process?
The Single incomes are also lower due to divorces.
I have more money after the divorce. No, I didn't r receive alimony.
Depends how you define "single". A large percentage of all marriages end by the death of a spouse.
I’m surprised the median income for 65+ is so high.
Agree. I am in that age bracket and my income is below that and I still work part time.
In Round Rock TX, 54000 a year is for a single person, without a lot of debt.
People who live in a well-maintained house, with a paid off mortgage, need MUCH less "income" than people still paying on a mortgage, or paying rent.
Buy a house, pay off your mortgage, and set up a Trust, are the three keys to winning the Retirement Game.
And I'll add ,if I may. Do not invest in any one thing that might become a Ponzi scheme.
I’m 63 and went through a divorce I currently work full-time and a on call job . I only have saved 35.000 part of that is in a 403 account 25,000 of it which is losing money right now. I also have a older sister living with me the pays no expensive because she hardly ever work throughout her life also have a younger sister, who depends on me to buy her thing, she’s also on Social Security disability. I have lots of medical issues right now, but I am currently working on getting healthier. My question is what can I do to cut down my expenses I am still paying for my condo. I owe 95,000 on it is currently worth about 289,000. I have a car payment which I owe 22,000 on my car. I plan on working answer 67 and maybe keeping it on call job since I don’t see my two sisters going anywhere or ever helping me what help can you give me our information?
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
@tudorrwilson Here comes the spammer scammers!
Just remember, that if you retire at 59, as I did, you will have to wait 3 more years to even
get "reduced soc. security" payments! My wife worked to 63 & we both got pensions, so
we were O.K.! You may have to withdraw funds from your IRA, to cover the span! Good Luck!
I'm nearing retirement in three years, and despite having solid companies in my portfolio, my profits have stagnated in this uncertain market. Are there any calculated profit opportunities in this recession?
Buying individual stocks is risky. I stuck with index funds and have not only recovered from the market downturn but am up significantly.
Your on screen amount need to be left on the screen longer or else how do we know what you are sayin?
In my opinion retiree income is important but the most important number in retirement is total net worth.
I'm sure that many of us now feel poor ... 😢💸'"
It all depends how much you spend. If you live in San Diego, your expenses will be a lot different than if you live in Crane, Indiana.
I don't see the value of the simple mean and median income numbers. It doesn't address the question: how much is needed. Is it too low for more than half and most people are struggling?
I also assume that anyone drawing down from their 401(k) is drawing what they need which would be their income from that source. A person with 10 million and needs $100,000 will draw down $100,000 and a person with $500,000 and needs $100,000 may draw down the same $100,000. (assuming no RMD requirement.)
I was hoping to see the breakdown of the three sources, the first and third quartile, some calculation of how much is enough and so on.
Surprised you even bother with the mean values. You should use median, and maybe a range around it. Perhaps 1 or 2 standard deviations. 5:08
The issue is most reports cite average. btw standard deviation are calculated off means (average) and dont work on medians. a 40%-60% quantile can be used
Always found it interesting when people panic because their stock market investments tank for some reason. The only money they may actually lose is the amount they contributed. Any other loss is stock value that they did nothing to earn, and for them only exists on paper. Remember, you can’t lose any more than you actually paid in yourself.
And it isnt a loss until you sell it
From Bard : The median cost of living for a couple aged 65-75 in the United States in 2023 is $52,141 per year. This includes housing, food, transportation, healthcare, and other expenses. The exact cost will vary depending on the couple's location, lifestyle, and health needs.
Here is a breakdown of the median cost of living for a couple aged 65-75 in the United States in 2023:
Housing: $22,100
Food: $10,000
Transportation: $7,000
Healthcare: $13,000
Other expenses: $2,000
The cost of housing is the largest expense for most retirees. The median cost of rent for a two-bedroom apartment in the United States is $1,500 per month. The cost of homeownership is also high, with the median price of a home.
Why would you not have a paid for home at retirement?
@@diggernash1 Poor health, bad luck, spending habits, the big D, are just a few of the reasons.
@@chessdad182 I'd say mostly bad choices.
@@diggernash1I agree. I have seen many people refinance their homes to take equity to blow on stupid stuff. I only had a few new vehicles over my work career and now have a duplex I live in and a recreational cabin. No mortgage, bought a new vehicle with cash before retirement along with a few motorized toys. Life is good and with motorhome prices falling that might happen next.
@@diggernash1 Realtors tell horror stories about couples and homes sadly I have seen it personally. Millions of retirees and near retirees surprisingly losing their home typically by a loved ones or supposedly loved one. Heck murders occur regularly in families over property.
Very interesting vlog Geoff. So single retirees have substantially less than half of the income of married households? Perhaps a significant factor for is that a lot of times the ONAC (Ornery North American Chick) throws out her husband right before retirement and cuts his assets in half? Hello hot dogs and pork and beans! Someone told me that can happen. Then the ex-wife goes on a vacation to Europe and buys a new car when she gets back. Bang....both have reduced retirement income.
Any chance at getting this data for early retirees? E.g., people that are retired but in the age ranges of 45-49, 50-54, 55-59, and 60-64.
Using average income is a suckers bet. There are a small number of high income individuals that push the average up dramatically. If you really want to know what other people are doing, you want to know the median. But I’m not at all sure why people want to know what other people are doing, because it won’t help you if you run out if money in your retirement with a lot of other people.
If you do this again, I would suggest that you use percentiles by age groups. The numbers as presented were just too broad.
Is the income before or after taxes?
Before.
This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!
I'll be 70 in December. I am starting my social security then. My first payment is $4230 So I'll get the mean income for my age and its inflation adjusted. I decided to wait because I wanted to consider my social security my old age insurance. My mother lived to 88 and my father to 92. I should have enough with savings to cover me including long term care.
should have enough? do you think guessing is a good idea
@@DrSchor I am also going by the Fidelity chart that shows I should have enough, even in a below average stock market to last to age 95. At that point, there should still be 1.3 million left in my account. Most of money is in cash or a 401K & ROTH that is in the S & P 500 so nothing too risky. I am a frugal person so I always live below my means and carry zero debt. Even in worse case scenario, I have funds that would cover a high quality nursing home. I feel I can take care of myself and won't be a burden on anyone. I've seen how lacking senior care is if you have to rely on Medi-Cal.
Net or gross? It’s unfortunate that SSA benefits are double taxed with once when deducted from our pay checks and again when we receive SSA benefits.
@@kathleenphillips7145 That’s before taxes
The bulk of my retirement income comes from dividends generated by stocks (BDCs, MLPs, CEFs, and REITs) in my private brokerage account. That, combined with my SS, means I haven't had to tap my Roth, IRA, or 401k as of yet. But it took til age 68 to get there.
Nice-that's what I'm working toward, but am 15-20 years from retirement age.
Same here. I retired at 68 and my pension along with my SS is enough to cover my expenses. All my assets remained untouched and I have been retired for 23 years.
I can't help but wonder about the tax consequences of holding those investments in your taxable accounts. For me, there are other goals such as slowly and under taxable limits converting out tax deferred accounts to our Roth IRAs. Outside of this if you keep yourself in the 12% tax bracket you're all set.
I don't have the guts to put one red cent in the biggest ponzi fraud stock market of all time maybe even all times including the future one million years. I figure at some point in time everyone except the bankers will lose everything. 95 percent is the standard definition of a ponzi collapse. The 5 percent are the bankers who run the entire ponzi.
In my situation, I’m retired but my spouse is still working (they are four years younger) so the household income is more than twice my retirement income (and I have SS, pension and 401k money coming in). And I’m in the first age bracket.
Why average and not median?
Are these income figures pretax or net?
incomes are always pre-tax
Partner with the government with 401k and IRA’s is the number 1 reason jobs keep leaving our Shores. Down size and you’ll find you don’t need the same income in retirement that you had while working. And you’re not a taxpayer for the rest of your life, which is what partnering with the government makes you
I realized that the secret to making a million is making better investment. I bought my 1st home at 21 for 87k sold for 197k, 2nd home 170k and sold for 320k, 3rd 300k and sold for 589k and buyers paid all closing costs expenses etc Not making up to a million before retirement is unfulfilled retirement.!!
LOL. People typically don’t have all three. Anyone who has worked as they should either has social security or a pension that replaces social security. Everyone that wants to work can work. So everyone has at least two of the 3 and most likely all three if they wanted all 3. The requirements are low to qualify for social security and anyone can work.
A lot of us do collect bullion/coins and other precious metals (both numismatic and non-numismatic). It's not as rare as you think :)
I got one gold eagle and one silver coin. They are both worth less than I paid for them.😢
Most people who do this probably do not get any significant income from it.
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $875k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
Interesting Roger. I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Colleen has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
Age how do I compare? Yup I'm older 😂. I'm astonished how low even the mean single income.
Should always go by median, not average…
I have rare coins, but I don't count them as investments.
dont be silly; they are part of your net worth, and are investments
These videos NEVER state whether these figures are gross income or net income.
I usually like your videos. However, this one I disagree with you. You should never compare yourself to others, we are each different and on a different life journey. When you start comparing yourself to others you risk a lot to your emotional health. What works for one is probably not going to work for you. Comparisons like this are either good or bad for a person.
Couples have more than double the income because they have more than triple the assets. Marrieds get better tax treatment (there’s a reason being taxed like a single is derisively called a “torpedo”) and it’s much less than twice as expensive to support two people in one household. Both are extremely helpful during the accumulation phase.
The struggle is real for singles
Actually there's a married couple tax penalty for higher earners. The "tax torpedo" is when you're bumped into a higher tax bracket thanks to Required Minimum Distributions from your tax deferred retirement accounts, especially when coupled with pension payments and of course your social security and taxable investment dividends, interest and capital gains. Then there's the "Widow's Tax Trap" when the surviving spouse has most of the same income but their tax brackets and credits are halved. Of course it's easier to both build wealth and manage taxes as a married couple but those are all choices we all make and let's not pretend that marriage over staying single doesn't come with significant compromises and sacrifices. Either way, retirement is far too late to complain about the life choices you made all along the way.
Interesting. I’m surprised that the median income is so low for singles and can’t imagine getting by on that even if the home is paid off.
It would be difficult, these days.
Half of the retirees do it on much less than that. Depends where you live. $51,000 would be a windfall for me.
I’m 63 now, and SS would be $2300 it I took it, $2450 at 64, $2660 at 65, $2860 at 66 which is where I think I’ll take it.
My roughly $1.1MM (not all I have) is throwing off ~10% in divvies (though some MLP stocks will be taxed). I give up “gains” for income. I’m also in a private partnership that throws off ~ $12k/yr
So at 66 I’ll be getting ~$33k from SS. That will take me to ~$150k/yr. House is paid off.
And I still have a very large reserve just in case.
If the idiots in DC don’t get us all nuked, I’ll probably make it to my mid-80’s where if my health is not so good I’ll just check myself out of the game.
I am 68. My Soc Sec will double if my ex predeceases me.
he won't notice a little arsenic if you put it on grapefruit
@@DrSchor Ha! I haven’t seen him in 35 years. I don’t wish him ill because it’s bad karma.
The other reason households have more than double the single person's income probably has to do with the savings rate. If you're married, dual incomes often are available to pay the bills, leaving more to save and invest for retirement.
The comments here are usually insightful, but man the A.I. spambots are overloading it.😞
People with part time jobs don’t consider themselves retired. Retired and being 65 or drawing social security are not the same thing. This bs is making assumptions that are not pointed out to begin with. Like I said, “retired” people are not working “part time”. If someone is still working, even part time we either call it working part time or possibly semi-retired. But, semiretired implies someone is working.
Legally im retired after 20 years of service from military. I worked 4-5 hours twice a week to get my 20% discount from clothing stores.
Get rid of "guber" smile in title pg.
I early retired at 53 in 2019 from my IT job with no pension and set my taxable amounts up to generate about 30k in income which I live off of and do not tap the principal. I generate another 17k per in my IRA'S in dividend and yeild income but have not touched it since I am 57. My wife is 52 and works and makes 60k. Of course her providing health insurance through her employer for us is significant. My total savings is up since I retired in 2019 from 1.25m to 1.4m not including my home, collector car and watch collection. My wife has 400k saved and set a goal of 500k to pull the plug. As you can see my current 30k is paltry but I do not struggle one bit. SS for me shows around $2400 per month at 67 which sight unforseen would mean I'd need significantly less from my investments. The irony is if we sold our home our net worth would be about 2.2m which years ago I thought was more money than we'd ever need but now with runaway inflation, it's a different story.
I believe all baby boomers will be 65 by 2030. For the sake of discussion based on close approximations of today’s numbers, boomers hold $75T in net worth yet the median net worth sits at about $300K for those at 50th percentile over 65. Regardless of the fuzzy math, the gap between the haves and the have nots is no joke. I see this gap only growing for subsequent generations who will also bear the additional burden of closing Medicare and SS shortfalls created by the ones that came before.
Or for some others, you pass on before you can even enjoy any retirement.
I’m 62 with $20m saved up.. I’d like to retire now but not sure I have enough saved????
Absolutely no stats on retirees of 62 yo.
Thanks for the information. I’m about average in the group, so I appreciate your efforts on this video, Geoff.
One thing I never hear about in retirement videos is death. How do you reconcile that into your plans?
I'd plan on that happening.
@@nixworld767 …and taxes!
@@nixworld767😂
You have no control over your ira distributions other than increasing it over the RMD.
We sold our house in FL and moved to Merida, Yucatán. Mexico to retire. No regrets
you left out the "yet"
the poor made minimum wage and couldn't save. and now have to live of SS
You should have 15 to 20 times your last year's annual salary (excluding social security) saved in a tax-deferred account and/or Roth account or both.
Uh-huh. Talk about the 1%.
@@kevinh5349 Easy to do, just match your company's % match in your 401k and add 1% every time you get a raise. PS - I'm not in the 1%.
Why? There is no realistic mathematical basis for this unless you are retiring at age 30 and need to sustain income for a long time and will receive basically 0 for social security.
This figure of 15-20 times your last salary has been shown to be way off. It all depends on your particular expenses in retirement.
That figure is extremely high unless you are going to put your entire nest egg under your mattress in cash. No future growth.
Really wish you would do more videos for people that want to retire early. I’m 34 and would like to retire around age 45-50. To work towards that lofty goal both me and my spouse are maxing out our 401K and being responsible with other spending
No one is stopping you from retiring early. The question is, are you financially set for life. Do you have a steady monthly retirement?
Why do you need a video to retire?
This is only for the US.
As UA-cam is, surprisingly, also watched by people outside the US, you should probably say that🤷🏻♂️
Thanks for the income information. As couple our gross income is close to the mean, but much higher than the median. What is most concerning for us is inflation. Asset values have been hit hard since 2020. We've been buying TIPS and short term treasuries to take advantage of higher interest rates.
Where are all these single retirees living on approx 35k/ year???? I assume that is pre tax income. So, they are living on even less. It would seriously be helpful to know. Of course some are living w family and friends. But, certainly not the majority. Would really appreciate a video on how and where single 65 yo retirees are living on approximately 35k/yr. Pre tax income. I hope you consider this request.
I overstated the median single 65 yo income. Approx 30k. Not 35k. Pre tax. I am unable to believe that many/most single retirees are living with others. Dumbfounded as to how and where these people are living. Please expand on this topic with another video. Some of us need info on less expensive alternatives to current living expenses.
If your home is paid for at retirement, living on $30k is not extremely difficult in rural areas of the southeast. Retire to the country.
My husband and I live on $30k/year in Iowa. That's what we spend, not our income.
Just to add, our expenses would be $24k/year, but I'm still paying $500/month on my student loans.
It helps if your home is paid off and you have low property taxes.
You left out income from taxable investment accounts. Not everyone can invest a great amount into retirment accounts. Then there are people that can invest in a traditional 401k but dont want to as its not tax effective for them.
I think you're fabulous. But I'm almost certain your statement that one percent of the population owns 2/3 of the wealth in this country is off by a significant margin.
Although it is significant, I don't think it's anywhere near that amount. By orders of magnitude.
He is right. Do some research. The one-percent holds tremendous wealth.
In NO country should the top 1% own 2/3 of the wealth.
They can own whatever they can , it really has nothing to do with what the rest of us do or don't do.
You should stop buying their products. 😂
P.S. There’s always going somebodies on the top.
@@jamesgreen1857 Of course it does. The wealthiest can afford to find ways to avoid paying taxes, which costs everyone in society. And much of their wealth is built on the backs of exploited labour and supports all sorts of unethical practises that make it more difficult for the rest of us. I should think that's obvious. You might think that kind of wealth concentration is a good thing (rah rah free market capitalism and all that), but don't pretend it doesn't have severe consequences.
@TT-fq7pl Nope , its irrelevant what someone else makes, I focus on me and planning my future. 23 yrs factory worker and now I work for myself. I probably make less than the guys I worked with at the factory but that ok, it's my choice. Just like it's your choice to work wherever or not or start your own thing.
This is still the best country on earth. Immigrants come here everyday with nothing and sacrifice have their own businesses within 5 or 10 yrs and are successful.
Envying what someone else has is not a good life strategy,
That is because they own 99 percent of the politicians! LOL.
I’m single, retired in Portugal, my income is about $57,000.
I'm 64. I'm not retired. (I run my own practice.) But I have two pensions: military and federal. I receive them now (and have for a long time), even though I'm hardly "retired."
Your situation is similar to mine, except I retired at 66 about 5 years ago: 34 year Col.’s pension, then 10 years working for the VA, plus a VA disability pension. Add my social security, and my wife’s pension and social security and we gross about $19,500 monthly, and that’s after our Part B premiums have been deducted and before adding investment income.
@@stevennevins6643 We won't do that well, but we're just below that. I have both TRICARE and Federal BC/BS. Not sure how they interact with Medicare, but I'll have to figure it out in the next 6 months or so. I retired as a captain (prior enlisted), but I retired at 36, so I've been collecting for 27 years. The GS-15 retirement isn't too impressive (13 years), but having the Fed insurance is!
@@richdouglas2311 When you turn 65, Medicare becomes your primary, and TRICARE For Life your secondary. You’ll have to pay Part B premiums, but that’s it. My wife and I have had ZERO out of pocket medical expenses since turning 65, except very small medication co-pays for her. I don’t see the need for any other medical insurance. (Although I used VA for hearing aids and for my medications). I did keep the GS dental insurance. It’s much better than TRICARE dental for retirees. What branch were you?
I don't care how I compare. I'm not in competition with anyone. Enough already!!!
It doesn't matter what your income is. What matters is your net worth.
Why would anyone care about how they "compare" to others? Unless you are the poorest person on the planet, or the richest person on the planet, there will be people who are poorer, or richer than you. Get over it.
UA-cam creator "Sarasota Tim" says everyone should take their social security at age 62 because they don't know how long they will live and just do a side hustle to make up the pay your not getting. What do you thonk of that strategy Mr Schmidt?
Like anything, it depends. Some people are worried about running out of money later in life, others “want what’s theirs” and still others saved very well. I have videos on this which outline some of the decision points
I think his advice is questionable for anyone that plans on working prior to Full Retirement Age (FRA) which is 66-67 for most new retirees. If you make more than 19K or so from that "side hustle" they start reducing your SS check $1 for every $2 over or $1 for every $3 over in final year. So, if you earn much you can dig yourself a hole.
most people in the USA don't have any of these things. that's why we always refer to the 1%
Interesting that you say that people who worked hard have a good retirement income. I think you need to realize that that's true for men but not necessarily for women. More retired women live in poverty than men, and it's not because they didn't work hard. There are two reasons. The first is that there continues to be a pay gap between men and women. The second is that women are forced to take time off during their earning years to take care of family members, beginning with their children and possibly ending with their aging parents. Men are much less likely to do this. This care work is certainly hard work for which women receive no compensation. Next time you're going to offer advice that only applies to men, please post a warning label at the beginning of the video.