It states that you can comfortably withdraw 4% of your savings in your first year of retirement and adjust that amount to account for inflation for each subsequent year without risking running out of money for at least 30 years. So how do you know how long your money will last in retirement? Bengen found that retirees could safely spend about 4% of their retirement savings during the first year of retirement. If you rely on a fixed 4% in good times and bad times, things may or may not work out, but you're taking a risk by employing a rigid approach to retirement planning.
Overall, however, most experts agree that you'll need between 70 and 80% of your pre-retirement income to maintain your standard of living in retirement. Knowing the average retirement income in the United States can help you see how it compares to the national average.
One of the reasons many Americans get up and go to work every day is to save some money for retirement. While Social Security payments can be a useful financial basis during retirement, they're often not enough to cover anything other than the most basic expenses, especially in times of financial uncertainty caused by the coronavirus pandemic.
Since high incomes tend to increase the average, median retirement income may be a better reference point. Knowing the average retirement income in the United States can help you see how it compares to the national average.