Average yearly income of retired couples

Updated March 23, 2017

Knowing your average yearly income during retirement helps you make a budget plan that's realistic and sustainable. A retired couple's average yearly income is determined by a variety of factors, including their amount of savings, investments and even how young they started saving. Before you retire, you should understand how these various factors impact you retirement income and average income for retired couples.


Saving early and saving often increases the probability that you're saving enough money. You should meet with a financial professional to determine how much you should save per month. Also, find a retirement calculator on the Internet to estimate your monthly savings needs. It's impossible to recommend a specific dollar amount to use as a starting point without knowing how much you make, how much money you want to replace when you retire, how much you think inflation will be in the future and what kinds of investments you'll invest in over your lifetime.


Your investments drive the amount of money you must save. If you're a conservative investor investing only in fixed-interest investments, then you may require more savings than if you had invested in variable-rate investments such as mutual funds. The higher your compound growth rate on your investments, the less you must save out of pocket.


According to Greg Gore of Praxis International, Inc., the average retired couple's investments produce an annual income of just £28,353. This is based on an analysis and data from the Social Security Administration. Your income could be more or less than this based on your personal investing abilities, savings rate and financial goals.


You should base your savings needs on your personal financial goals, not the average income that other couples make. While you might think knowing the average retirement income for other people is helpful, it's largely irrelevant to your own financial plan. Your goals are likely very different from other people. Also, even though the average income represents what most people make, it does not consider whether these people are living comfortably or have had to alter their goals or original financial plans due to an income shortfall.

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About the Author

I am a Registered Financial Consultant with 6 years experience in the financial services industry. I am trained in the financial planning process, with an emphasis in life insurance and annuity contracts. I have written for Demand Studios since 2009.