Average Retirement Income By State In 2024

The average household retirement income is $27,627. Alaska has the highest retirement income at $36,023 and Indiana has the lowest at $20,500.

Wisevoter analyzed the U.S. Census Bureau data and found that the average household income for a retired person is $27,617. However, the data also showed a large income discrepancy based on the retiree's state. Alaska has the highest retirement income per household at $36,023 while Indiana has the lowest at $20,500. Review the average retirement income to see how your savings stack up and whether you are ready to retire.

Average Retirement Income By State

According to a study from Wisevoter, the average retirement income per month varies by state after analyzing the most recent U.S. Census Bureau data. Review the data to see how your state compares and where your retirement savings are at.

Top Sources of Retirement Income

In 2023, the Federal Reserve System reported the following top sources of retirement income for Americans ages 65 and older. The percentage of retired Americans with this type of income source is shown.

• 92% receive Social Security benefits
• 65% take withdrawals from a pension or retirement account
• 47% earn from interest, dividends and rental income
• 25% bring home a wage, salary or self-employment income
• 5% have a cash transfer from a source outside of Social Security

Social Security makes up an average of 30% of a retiree’s income. However, a larger majority rely on Social Security to provide half of their retirement income, based on Social Security Administration data.

What Is a Good Monthly Retirement Income?

As you consider retirement income, consider whether your area's average monthly retirement income would cover your expenses. According to data from the Bureau of Labor Statistics, the average monthly retirement income for individuals ages 65-74 is $5,266. In contrast, the average for those 75 and older is $3,994. 

How to Increase Retirement Income

Whether you’re already retired and looking to live a little more comfortably or are planning for the most comfortable retirement, here are some ways to increase your retirement income.

1. Start Saving Early

The sooner you start saving toward retirement, the more you can grow your savings and take advantage of investments.

2. Max Out Employer Matching

Make sure you aren’t leaving money on the table. Max out your employer matching program to bolster your savings.

3. Consider an IRA

An IRA allows you to contribute more to your retirement savings over your 401(k) or other employer-sponsored retirement plan. With a Roth IRA, you can diversify your tax advantages to enjoy tax savings now and during retirement.

4. Use Catch-up Contributions Once Eligible

Once you are 50, you can take advantage of catch-up contributions to increase the amount you can contribute to your retirement accounts. This applies to both 401(k)s and IRAs.

5. Delay Social Security Until You Need It

Every year you delay taking Social Security, it increases the amount you receive in the future. You can delay until age 70 and significantly increase your monthly income by doing so.

6. Diversify Your Retirement Income

Before you retire, consider diversifying your income. Look into purchasing dividend stocks and rental properties. Consider whether starting a business or side hustle might be right for you to help prepare for a more flexible work arrangement once you retire.

7. Invest Wisely

Look for smart investments for your retirement accounts that help them grow. While you want to switch to more conservative investments, the closer you get to retirement, the more you don’t want to stop earning interest on the money. Ideally, you should live off the interest that your retirement accounts earn for the greatest stability and assurance that you’ll have enough money to last the rest of your life. Talk to a financial advisor if you aren’t sure how to invest your retirement savings.

8. Avoid Debt

Debt just means paying more for the things you want. Avoiding debt helps your money go further and will ensure that your fixed income in retirement is comfortable. Do your best to pay down all debt, including your mortgage, before you retire.

9. Build a Budget

While retirement is relaxing and enjoyable, your retirement savings are still finite. Get good at budgeting and be strict about spending your retirement income. The more responsible you are with your money, the longer it will last and the more comfortable you’ll feel.

10. Make a Health Insurance Strategy

Health care costs can consume a great deal of your retirement income. You need thousands of dollars saved just to pay for health care throughout your retirement years. Take advantage of a health savings account (HSA) and invest the money as best in the years leading up to retirement to provide tax-deferred growth.

Preparing Your Finances for Retirement

Whether your state's average retirement income is sufficient to sustain your lifestyle or not depends on your unique financial situation. You should evaluate your retirement savings regularly to look for opportunities to further grow your savings and achieve your goals. Looking at average retirement income data will only tell you so much. You need to evaluate your budgets for a full picture of when you’re ready to retire.

Frequently Asked Questions