Average Retirement Income by Age and State

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Retirement planning is built on projections, but averages shape your financial reality. It’s not enough to know how much you need; you benefit from understanding how your financial picture compares to others. One way to determine this is by looking at the average retirement income in the United States, categorized by age group and state.

The breakdown by age, from Empower, looking at the 2025 U.S. Census Current Population Survey, shows how the median and mean annual income for retirees change across different age brackets, from the more active 55-59 and 60-64 age groups to the later-stage 75+ age group. We also examine data on average retirement incomes across all 50 states, provided by Wisevoter and based on the U.S. Census Bureau’s American Community Survey.

Knowing the average retirement income for your age bracket and state helps you benchmark your savings progress. If the median household income for retirees in your state is, for example, $65,000, and your projected income is $40,000, you are below the local benchmark. To maintain a similar standard of living in your area, you may decide you need to increase your savings or reduce your expected spending.

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Social Security provides a vital baseline, but it’s not enough to cover living expenses — especially when faced with rising health care costs and inflation. To bridge that gap, you need a realistic savings target.

By looking at data by age groups, you can see how much the average income drops over the course of retirement. The median income for those aged 60-64 is $83,770. That figure drops by $35,980 (nearly 43%) for individuals aged 75 and over. This decline is attributed to a reduction in work income and the necessary drawdown of retirement accounts.

The median number is probably more representative of the actual average income in the U.S. than the mean number. This is because households with higher incomes tend to skew the mean calculation toward the high side.

Ultimately, the most important lesson derived from viewing average retirement income by age is recognizing the income deceleration that occurs in later years. The consistent decline in median income after age 59 underscores the financial risk posed by inflation and the cessation of work-related income.

This knowledge can be used to focus on creating a sustainable, tax-efficient withdrawal strategy today — one that accounts for the inevitable drop in income and prioritizes managing your future tax liabilities, such as RMDs, to protect the longevity of your portfolio. Your goal isn’t just to reach the average, but to outlast it.

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Average retirement income by state

Where you live is the single largest determinant of your retirement budget. While the national average retirement income serves as a starting point, it masks vast differences in the cost of living. A detailed, state-by-state perspective can help you move beyond national generalizations, setting a savings goal informed by the real-world earnings of your counterparts in other states.

For instance, many states offer additional tax breaks for retirees. Some states exempt all retirement income from taxation, while other states offer substantial tax credits to retirees living on fixed incomes. One reality you cannot escape is how the federal government taxes your retirement income and estate. Even if you move to a state that doesn’t tax Social Security benefits, pensions, or has no inheritance/estate taxes, you will still be subject to federal taxes.

If you are considering a move, note that a state with a much higher average retirement income usually has a proportionally higher cost of living as well. Knowing this can help you assess whether your savings will be more durable in an area characterized by a lower average income and subsequently lower costs.

Planning tip: Only nine states tax Social Security benefits. You may want to take note of this as you’re considering a move.

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Using data to your advantage

The data shows that retirement income is far from uniform; it can shift dramatically by age and geography. While median figures provide a powerful benchmark, your ultimate financial success depends on personalizing this information.

Use these age and state-by-state averages not as a final goal, but as a critical reality check. Suppose that your projected income falls below the average for your age or location. In that case, it’s a clear signal to increase savings, optimize your withdrawal strategy to manage taxes, or re-evaluate your geographic future. The time to plan your specific income strategy is now.

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