Retirement Reality Check: A Look at U.S. Averages and What They Mean

1. Retirement Statistics in the U.S.: Key Averages to Guide Your Planning

When planning for retirement, it’s essential to understand how the average American prepares for it — and how those numbers compare to your own plan. Knowing the averages for savings, retirement age, Social Security benefits, healthcare costs, and lifestyle spending gives you a realistic benchmark for what to expect.

While these averages don’t define what your retirement should look like, they help paint a clear picture of what’s typical — and where the biggest financial risks lie.

1. Average Retirement Age and Life Expectancy

The average retirement age in the United States is 62, though the reasons people retire vary widely — from financial readiness to health, job satisfaction, or caregiving responsibilities. About half of Americans retire by 65, the age when Medicare eligibility begins and Social Security becomes a core income source.

Many older adults now delay full retirement or take part-time roles — not only for financial reasons but to stay active and engaged. As of 2025, approximately 20% of adults aged 70–74 remain in the workforce.

Retirement Milestones and Key Ages

When Do Americans Retire?

While few retire before 60, a growing number work past 67, often to maximize Social Security and employer benefits.

Average Life Expectancy and Longevity Data

The average life expectancy in the U.S. is 77 years — 74 for men and 79 for women. But averages can be misleading: a healthy 60-year-old has a 50% chance of living another 25 years or more. That means your retirement savings may need to last 25–30 years.

Here’s the likelihood that a 60-year-old will reach certain ages:

Longevity is one of the most underestimated risks in retirement planning — living longer than expected means needing more income, healthcare, and support later in life.

1. Average Retirement Assets

Most Americans fall short of recommended savings goals. According to recent Federal Reserve data, the median retirement savings for households nearing retirement (ages 55–64) is around $320,000. While that may sound reasonable, it often translates to less than $1,500 a month in sustainable withdrawals.

Savings by Range

This means nearly half of retirees have less than $100,000 saved — leaving them heavily dependent on Social Security.

Debt in Retirement

Many Americans enter retirement carrying some form of debt, which directly impacts their financial stability and overall net worth. About 60% of retirees aged 65 and older still owe money, with mortgages making up roughly three-quarters of their total debt. Around 38% of homeowners aged 65–74 and 30% of those 75 and older continue to have mortgage payments, while others carry balances on credit cards, auto loans, or personal loans. Non-mortgage debt averages around $11,000 for retirees and often carries higher interest rates, reducing the income available for essentials like healthcare and daily living. Since debt lowers net worth, it’s crucial for retirees to factor it into their financial planning—prioritizing the payoff of high-interest loans, evaluating mortgage options, and ensuring that retirement income can comfortably cover both living costs and remaining debt obligations.

Net Worth: The Bigger Picture

Savings alone don’t tell the full story. Many retirees’ wealth is tied up in their homes. Home equity is a major component of net worth. The median homeowner’s equity was about $198,000 in 2022. Including real estate and other assets provides a more accurate view of retirement readiness.

Homeownership remains the largest asset for most retirees. While this adds stability, it can also mean that wealth is “illiquid,” limiting flexibility unless the homeowner downsizes, refinances, or uses a reverse mortgage.

1. Average Income in Retirement

For most Americans, retirement income comes from a combination of Social Security, pensions, personal savings, rental income, and part-time work. However, Social Security remains the foundation of retirement income — nearly nine in ten retirees receive it, and for many, it represents their primary source of support. Yet, Social Security alone rarely covers all living expenses, highlighting the importance of additional income sources such as savings, pensions, or part-time employment.

While the average total income per retiree approaches $57,000 per year, the median — or what most retirees actually live on — is closer to $30,000 per year. This large gap highlights how income is unevenly distributed among retirees: higher earners with investments, pensions, or rental properties significantly raise the average, even though most retirees live on far less.

Household-Level Income

When looking at households headed by someone age 65 or older, the combined income is typically higher, as it may include two Social Security checks or additional retirement savings. The median annual household income for this age group is around $56,000, while the mean is much higher — closer to $85,000–$90,000 — again