While still historically low, interest rates have been slowly trending upward. If you were to use a common (though flawed) rule of thumb to withdraw 4 percent each year — adjusting for inflation as you go along — then $164,000 would only produce about $6,300 in retirement income (assuming a 4% annual return) in your first year of retirement. Also, have you considered passive income sources? Values above or below 100 represent above-average wealth or below-average wealth compared to the national level. You can make sure that you are making the right choice between getting monthly payments vs a lump sum. Postpone collecting your benefits until at least full retirement age or longer to get the maximum monthly payment. Around 17% of Americans are relying on mutual funds and stocks but that number has declined over the years due to the risk factor involved. Get expert financial advice, tips, and strategies delivered right to your inbox. (Here are. Its not unusual for people to live to age 90 these days, and some are even reaching the century mark. SOURCE: Data is summarized from the US Census Bureau’s Current Population Survey(CPS) Annual Social and Economic (ASEC) Supplement. The crosswalk files will help you use US Census data by zip code. Many American employers put money into defined contribution plans like 401(k)s, 403(b)s and 457s to generate a steady source of income during retirement. Personal Capital provides a free financial dashboard that features a net worth tracker (the easiest way to track your net worth), a retirement planner, budgeting tools, a fee analyzer, and more. If you are working with a financial advisor, make sure they have a focus on retirement — not accumulating assets. Take a look at the sample files below. Starting at age 55, spending tends to increase slightly, as some younger retirees travel or take on new pursuits. Average household spending for these two groups was $87,459 and $45,725 respectively, although spending net of income tax, insurance and pension contributions was only $65,086 and $36,339. Here's how to make sure you're on track. The state you live in may affect your average retirement income, depending on the cost of living and the job opportunities available. Also, due to the decline in other retirement investments, Americans are now delaying their retirement or taking up part-time work during their retirement years. A full 42% of men and 48% of women start benefits at 62. According to data from the US Census Bureau, the average retirement income by age is as follows: If those averages seem a little high, remember those numbers are slightly misleading because households making the highest amounts of money will skew the data and pull up the average. Whether retirement income can keep pace with longer life spans is a source of concern for many retirees. A bit of good news: The average monthly Social Security income got a 2.8% boost for 2019 due to a cost of living adjustment. mi. According to the Social Security Administration, Social Security benefits make up about 38% of the income of the elderly. Also included for each ZIP code are economic properties, congressional districts, tax info and real-time weather. After 10 plus years of a bull market, stocks started giving some uneasy signals at the end of 2018. This tool is consistently rated the best online retirement calculator because it is so comprehensive and useful. If you’re midway through your working years, it’s a little tougher. Retirement Income 2020 is Only Part of the Equation. Your email address will not be published. Your email address will not be published. However, just a quarter of the respondents who were surveyed intend to tap into their home equity to fund their retirement. Florida Average Retirement Income per Household Zip Code Rank. Map the boundaries of this ZIP Code and others on any map platform. 401(k) balances: You versus the average. Key Takeaways The … The US average is 7.3%. Learn more about smart strategies for Social Security if you are married. A total of 946 results found. Information presented on Vital Dollar and through related email marketing is intended for informational purposes only and is not meant to be taken as financial advice. It's completely automated and you can view the detailed results just a few minutes from now. This slideshow includes the percentage of income in each ZIP Code that comes from wages, retirement income, self-employment or business partnerships, and investment income. The pension rights center reports that: “Half of all Americans age 65 or older have incomes of less than $24,224 a year – far less than the amount that most need to meet their day-to-day living and health care expenses.”. The ZIP codes are listed according to the highest to lowest median home price along with the average number of days on the market. Also be wary of sales pitches that sound profitable but come with hidden costs and fees for opening, maintaining, and closing accounts associated with certain investment products. Other nearby zip codes on the list include 10005 at No. Or, explore using a bucket strategy. Residents of Alaska actually get a tax credit every year for living there. Among 65- to 74-year-olds, labor force participation is predicted to hit 32 percent by 2022, up from 20 percent in 2002. Any work income is going to be tremendously beneficial — both financially and for your intellectual and social well being as well. The average retirement income in D.C. is $100,419. Average Social Security Retirement Income. It represents the wealth of the area relative to the national level. READ NEXT: 9 Steps to Financial Independence (How to Retire Early). Want to make sure that your 401(k) investments are optimized and diversified? ZIP Code Data - 2017 Data files are available for download in Comma Separated Values files (.csv file extension) where data items are separated by commas and each new line represents a new row, and Excel files by State (.xlsx file extension). The bad news is that this amount will not produce adequate income for most households. Before comparing the average earnings of other retirees to your own, consider the difference between “mean” and “median” incomes: Since median income is almost always lower than mean income for any area, this is the average that you should consider while assessing your own retirement-readiness. Yeehaw! According to the most recent Transamerica Retirement Survey, “thirty-nine percent [of baby boomers] expect their primary source of retirement income to be self-funded from accounts such as 401(k)s, 403(b)s, and IRAs or other savings.”. How your spending habits change in retirement. 37220: 36.068452, -86.793116: Nashville, Tennessee: 6,163: USA.com / Ranks / Florida Average Retirement Income per Household Zip Code Rank / Based on ACS 2010-2014 data Florida Average Retirement Income per Household Zip Code … 2 On average, US households under age 55 spend almost $58,000 a year on a wide variety of expenses. However, your home is most likely your most valuable financial asset and there are various ways to turn your equity into retirement income. As you prepare for retirement, you may wonder if your savings are on track to maintain your quality of life while being able to pursue hobbies or travel with your increased leisure time. Responses and comments below are not provided or commissioned by the bank advertiser. As mentioned above, you can get a quick and easy comparison by using the NewRetirement Retirement Planner. The best income data does not include information about whether someone is officially “retired” or not. The boost raised the average monthly Social Security payment for retired workers to $1,461 in 2019 from $1,422 in 2018. Retirement is more of a mindset these days. Your email address will not be published. Retirement Income in the Past 12 Months for Households; Poverty. Transamerica reports that baby boomers have saved a median of $164,000. Here's where that money comes from and ways to boost your retirement income. There are many ways that you can tap into your home equity to help maximize your wealth, add to your retirement income or make other assets last longer. While Americans aged 65 and older, on average, depend primarily on Social Security benefits, many also draw income from other sources. Average Retirement Income: Mean vs. However, first let’s take a look at why average retirement income 2018 is remaining relatively static. Get the most popular income and demographic data used by 7,889 businesses to optimize their marketing campaigns and identify the right zip code … Below is an online database showing average income for each Michigan ZIP Code. In general, single people depend more heavily on Social Security checks than do married people. Reporting on average retirement income can be tricky. We also have Household Data including the number of Households per ZIP Code, average number of People per Household, Vacant vs. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered. The estimated median annual household income among retirees is $32,000, and more than half of retirees (53%) live on less than $50,000, according to "The Current State of Retirement… Like Social Security and Medicare, many pension plans are under funded. If you are of retirement age now, your benefits are probably not in peril. Knowing about average retirement income 2020 is interesting and one way to benchmark your financial health. You may have to work for longer to be able to afford a retirement in your state, and even then, your retirement income might be lower simply because of your zip code. However, in retirement you need to know how to spend your savings — this is often referred to as de-accumulation. Afterall, there are huge differences in the costs of living and income across different cities and regions in the United States. This has become the primary source of income retirement with some 42% of Americans relying on these tax-deferred accounts to support their retirement years. In general, single people depend more heavily on Social Security checks than do married people. In fact, you should look for work that you really enjoy doing and let the income be a bonus. Keep up the contributions, and you’ll have a tidy sum when you retire. Advisory services offered through Foundations Investment Advisors, an SEC Registered Investment Adviser, How to Compare Annuity Plans: Choosing the Right Annuity for You, Six Strategies for Planning for Health-Related Expenses Before Retirement. A ZIP Code distance database is also available. Consider yourself extremely lucky if you have this income! The research is clear. Everyone expected that the American Community Survey (ACS) would provide characteristics at the zip code level with the release of the first 5-year product (2005-2009). Vital Dollar has partnered with CardRatings for our coverage of credit card products. Some Americans are fortunate to receive pension during retirement. Reverse mortgages are an increasingly popular option. If you calculate that additional benefit over a 30 year time period, then waiting would mean $108,000 in additional retirement income. In the United States, the average retirement income in 2010 was $30,158. Defined Retirement Contribution Plans, 5 Steps to Get Your Retirement Savings on Track, Get a Free Analysis of Your 401(k) by Blooom, 11 Ways to Invest in Real Estate (With or Without Buying Property), Personal Capital - Free Net Worth Tracking and Investment Reporting, Get a free analysis of your 401(k) from Blooom, 9 Steps to Financial Independence (How to Retire Early), $73,645 (median) and $103,423 (mean) for household heads between 55 and 59 years of age, $63,919 (median) and $89,882 (mean) for household heads between 60 and 64 years of age, $54,124 (median) and $79,772 (mean) for household heads between 65 and 69 years of age, $46,797 (median) and $68,052 (mean) for household heads between 70 and 74 years of age. As more and more baby boomers head into retirement, there is a growing conversation about how to generate adequate retirement income from retirement assets. As our longevity increases, we will spend as many, or possibly more, years in retirement as we did working. Please see our Disclosure for further information. Blooom is offering a free analysis of your 401(k). The average retiree-led household makes $48,000 annually before taxes. A 2019 analysis of more than 30 million retirement accounts by Fidelity Investments found that the average balance in corporate-sponsored 401(k) plans at the beginning of 2019 was $103,700. According to the Social Security Administration, Social Security benefits make up about 38% of the income of the elderly. Among the states, Mississippi has the lowest life expectancy at 74.5, and Hawaii has the highest life expectancy at 81.5. Amid this daily grind, its easy to put retirement savings on the back burner, especially when its 15, 20 or 30 years off. For Veteran’s benefits, consult with the Veteran’s Administration or explore answers about veteran’s benefits. The median income is the income in the exact middle of the list with half of the incomes being higher and half lower. We may fantasize about international adventures or beachside escapes, but rarely do we lay the groundwork for realizing our retirement dreams financially. Downsizing is another possibility. The administrators and authors of Vital Dollar are not financial professionals, and views expressed on the site are strictly personal opinions. Your email address will not be published. While this number is in line with the average income for working Americans, nearly 30 percent of all retirees still count on their savings to be able to pay their bills. According to the AARP, the median retirement income earned by retirees from work is $25,000 a year. This site uses Akismet to reduce spam. Comparing your retirement savings with that average amount may be eye-opening, but spoiler alert: This information alone isn't all that helpful. If we assume this average spending with adjustments for inflation over a 30-year retirement, it's not unreasonable to think retirement could cost $1.5 million to … However, knowing your own projected retirement income from now throughout retirement and also calculating your future spending is the key to a secure retirement. Water area: 0.9 sq. More than 85% of people 65 and older get Social Security. Pretty basic stuff, yes. In our example, we would divide (1) 88,982,500 by (2) 3,556 to find out that the average retirement income for 78745 is $25,023. The second most reliable and certain source of retirement income is work income. For many Americans, the biggest asset is their home. This builds the retirement reserve over time which keeps growing until retirement. That is why it comes as bad news that home prices may be plateauing. This number is trending further downward. Median, Other Factors, 10 Common Sources of Income During Retirement, 10. March 2019 cost of living index in zip code 84010: 88.5 (less than average, U.S. average is 100) Land area: 15.1 sq. The table above shows both median and mean income. Source: Newretirement Income By Zip Code Lists. → Related reading: 11 Ways to Invest in Real Estate (With or Without Buying Property). Based on ACS 2010-2014 data. Database Download: Median Household Income in Tucson, AZ by Zip Code: Tucson, AZ Report: Median Household Income $78,026.00: $19,337.00: Related Reports. The CPS is a joint effort between the Bureau of Labor Statistics and the Census Bureau. Use this Social Security Calculator to figure out the best time for you to start your benefits. Here are a couple of other factors you should take into account: → Related reading: 5 Steps to Get Your Retirement Savings on Track. 2 On average, US households under age 55 spend almost $58,000 a year on a wide variety of expenses. Okay, maybe not so easy. Starting at age 55, spending tends to increase slightly, as some younger retirees travel or take on new pursuits. However, it is good news if you are trying to get guaranteed returns on savings.