Retirement planning in 2025 feels a bit like trying to land a plane on a runway that keeps moving. One day you think you’ve nailed the numbers, the next day inflation ticks up, healthcare costs climb, or the market dips, and suddenly you’re questioning everything. It’s no surprise that many Americans are rethinking what “enough” really means when it comes to monthly retirement income.
For context, the average retiree in the U.S. spends about $5,000 a month on living expenses, healthcare, travel, and leisure. But averages can be misleading. Some retirees get by on half that, while others need far more to maintain their lifestyle. Social Security provides a base — about $1,976 per month in 2025 according to the Social Security Administration — but that alone won’t cut it for most households. So, what exactly counts as a “good” monthly retirement income, and how can you build toward it?
Table of Contents
What’s a Good Monthly Retirement Income in 2025?
Financial planners generally say you should aim for 75% to 85% of your pre-retirement income. For someone earning $120,000 a year, that means needing between $7,500 and $8,500 per month once retired.
But reality paints a different picture. According to recent surveys, the average retirement income for individuals in the U.S. sits around $60,000 annually (roughly $5,000/month). The median income, a better reflection of the typical retiree’s situation, is closer to $47,000 per year — about $3,900/month. Married couples fare better, with an average of $100,000 annually or about $8,300/month.
Here’s a quick breakdown:
| Retirement Income Type | Annual Income | Monthly Income |
|---|---|---|
| Average Individual | $60,000 | $5,000 |
| Median Individual | $47,000 | $3,900 |
| Average Couple | $100,000 | $8,300 |
Now, location throws another wrench into the mix. A couple retiring in New York City or San Francisco might find $8,000 a month barely enough to cover housing and healthcare, while someone in rural Texas or the Midwest could live comfortably on half that. Cost-of-living calculators from the Bureau of Labor Statistics or Numbeo can help you fine-tune your own target.
The bottom line? “Good” isn’t universal — it’s personal. Your number depends on where you live, the lifestyle you want, and the unexpected costs that inevitably pop up, from medical bills to helping out family.
How to Add Guaranteed Income Streams to Your Retirement
Saving alone won’t cut it anymore, not when markets are unpredictable and inflation keeps chipping away at purchasing power. That’s why planners stress diversifying retirement income with guaranteed streams:
- Annuities: These act like DIY pensions. You hand over a lump sum to an insurer, and in return, you get a steady check — either right away (immediate annuity) or starting later (deferred annuity). For those nervous about outliving their savings, this is a strong safety net.
- Reverse Mortgages: Homeowners 62 and older can tap into home equity for monthly payments or a credit line. It’s not for everyone, but for retirees who are “house-rich, cash-poor,” it can ease the pressure without selling the home.
- Social Security Optimization: Waiting until age 70 to claim benefits can boost checks by up to 24% compared to claiming at full retirement age. For high earners, the maximum monthly benefit in 2025 tops $5,000 — a serious boost to income security.
- Part-time Work or Consulting: Not exactly “guaranteed,” but more retirees are picking up flexible side gigs or consulting. It’s less about necessity and more about staying active while supplementing income.
Wrapping It Up
So, what’s a “good” monthly retirement income in 2025? For some, it’s $3,500. For others, it’s $10,000. The real measure is whether you can cover essentials, enjoy your discretionary spending, and handle surprises without constant money stress.
The best strategy is to layer income sources — Social Security, savings withdrawals, annuities, maybe even rental income or a reverse mortgage. That way, you’re not betting your entire future on the stock market or a single income stream. Flexibility is the name of the game.
FAQs:
How much should I save before retiring in 2025?
Most planners recommend having 8–12 times your annual salary saved, but your personal number depends on lifestyle and location.
Is $5,000 a month enough to retire on?
It can be — in lower-cost states. In expensive metros, you may need more to maintain comfort.
What is the average Social Security benefit in 2025?
The average monthly benefit is $1,976, with maximum benefits for late claimers exceeding $5,000.
