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How Much Annual Income Do Retirees Have?

July 13, 2009 RSS Feed Print

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Most retirees get income from several places. The biggest source of retirement money for most Americans is Social Security. The average Social Security recipient gets about $13,908 annually as of June 2009. But then there’s pension income, if you’re fortunate enough to get one, savings from retirement accounts such as 401(k)s and IRAs, and increasingly some form of part-time work. Less common sources of retirement income include rent, royalties, insurance products, home equity, and even an inheritance. Not everyone can or is disciplined enough to save regularly or lucky enough to inherit a nest egg. So, there is a wide diversity in retirement income. Here’s a look at the recently released Census Bureau numbers about how much money Americans age 65 and over earned annually in 2007.

Total Income for Households Age 65 and Older in the U.S.

Under $5,000 (2.4 percent)
$5,000 to $9,999 (7.7 percent)
$10,000 to $14,999 (13.3 percent)
$15,000 to $19,999 (11.4 percent)
$20,000 to $24,999 (9.3 percent)
$25,000 to $34,999 (15 percent)
$35,000 to $49,999 (13.7 percent)
$50,000 to $74,999 (11.9 percent)
$75,000 to $99,999 (6 percent)
$100,000 and over (9.3 percent)

Source: Census Bureau, 2007.

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Catherine of CA. In this world, it is best to rely on yourself. The minute you place your future in the hands of a husband, wife or government you are relying on the fact that things will always stay the same. You have to fend for yourself in this world, just as animals do in the animal world. Most animals living in areas where food is not abundant in the winter months have adapted themselves. The work hard all of the good months to put stocks of food for the winter months. There were no government handouts, husbands or wifes working on their behalf to save for their future. They do it all on there own. If you figured that Social Security was going to take care of you for the rest of your life, you are going to have a very hard time as you dwindle towards your elder years.
You can not blame anybody else for your situation. You chose to not save money, you chose to invest in individual companies and take the risk, you chose to have a family and work at a dead end job with low pay. These choices in life have created your situation. You have nobody to blame but yourself.
I worked very hard over my life, I constantly saved 30% of my income no matter how much I was paid. I went without a lot of nice things, big screen tv's, dinners out, cable TV and such. I constantly learnt new skills to stay current with computers as they came to the for front during the late 80's and 90's. I spent a lot of time learning Microsoft products, MS WORD, EXCEL, Power Point and the like. During my career that ended in 2005 at 62 I never earn't more than 72k. However, as I saved 30% of my income each and every year starting since I was 26 I had amassed 3.2 million dollars. I continued my financial education and decided in 2006 to learn all I could. As such I had a well diversified portfolio and during the crash I was only down 19% at the bottom, however, seeing an oportunity to buy when the down hit 7200 I moved all of my bonds into the stock market. When the down was back to 10500 I then reallocated my money back to a balanced portfolio. So here we are today with 3.6 million dollars in my portfolio. I have since learnt the buckets of money strategy and moved my next 10 years of needed money to cash for living off.
As you can see, I had to constantly learn new things, live frugally and learn to invest. I relied on myself, raised 3 kids, and had my wife stay at home for her entire life. Unfortunately she passed away in 2007. I now live alone, have a great woman friend and visit my kids and grand kids monthly. My life is blessed because I used the principles in the bible to guide my way.
So your choices are : 1. Go back to work and save everything you can. Relying on the government to feed you is only going to make your life harder each and every year as inflation eats at the handout you are given...

Grotto of GA 4:33PM October 26, 2010

Monthly Part B Premiums for 2010 cost to you.
Income-related monthly adjustment amount.
Total monthly premium amount
Individuals with a MAGI of $85,000 or less Married couples with a MAGI of $170,000 or less $0.00 = $110.50 Standard Premium
Individuals with a MAGI above $85,000 up to $107,000
Married couples with a MAGI above $170,000 up to $214,000 plus $44.20 =
$154.70
Individuals with a MAGI above $107,000 up to $160,000
Married couples with a MAGI above $214,000 up to $320,000 plus $110.50 =
$221.00
Individuals with a MAGI above $160,000 up to $214,000
Married couples with a MAGI above $320,000 up to $428,000 plus $176.80 =
$287.30
Individuals with a MAGI above $214,000 Married couples with a MAGI above $428,000 plus $243.10 = $353.60
If you are married and lived with your spouse at some time during the taxable year, but filed a separate tax return, the following chart will apply:
Income-related monthly adjustment amount. Total monthly premium amount:
Individuals with a MAGI of $85,000 or less = $0.00 $110.50 Standard Premium
Individuals with a MAGI above $85,000 up to $129,000 plus $176.80 = $287.30
Individuals with a MAGI above $129,000 plus $243.10 = $353.60

Catherine of CA 8:31AM January 26, 2010

I worked and raised my children on my own without any assistance from any State entity. It was hard, but I did it. I tried saving as much as possible to my Senior years in the thought of retiring and getting away from the 'man' and a chance to relax for once.
I just retired at 62. Last year I was told my Medical payments would be $96.40/mo. But when I signed up for it this month, it is now $110.50/mo. I know that doesn't seem like much, but it is when you are counting every penny.
When I asked Medicare why it had gone up this year, the woman said that Social Security recipients received a 5% increase in 2009 so the new enrollees have to pay the higher premium. Later on all recipients will pay it. I told her, okay we all got 5% last year. This was due to the run-a-way economy, gas prices, rent, groceries, etc. This year, we have been denied a raise and the cost of Medicare has gone up on us. Something isn't right here. Doesn't look like the President cares one iota for the people that have worked hard their entire life to support our political idiots! Just as any Corporate entity, once you've been used they'll just throw you away!!!!
AIG with Washington Mutual lost the majority of my retirement savings. Yet THEY are bailed out leaving me to fend for myself on the meager scraps the Government happens to throw my way.
Isn't there anyone out there with an ounce of sense to rectify this? The blind leading us into oblivion!
I'm not a happy person here.

Catherine of CA 8:22AM January 26, 2010

How Much Annual Income Do Retirees Have?

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