Key Takeaways
- Sources of retirement income include Social Security, retirement accounts, pensions, dividends and employment wages.
- Retirees can expect to spend 70% to 80% of their pre-retirement income in retirement, according to one rule of thumb.
- Older Americans spent an average of $57,818 in 2022, but about 40% of households led by someone age 65 or older spend less than $40,000 per year.
- Social Security represents almost a third of the income received by people older than age 65, but with the program’s future in question, workers may need to think about how to replace that money.
