What Is the Average Retirement Income for a Married Couple?

Retirement represents a significant life stage for married couples, often marked by a shift in financial priorities and income streams. Understanding the typical financial landscape for this demographic is important for setting realistic expectations and planning effectively. This article explores what constitutes average retirement income for married couples, identifies its primary sources, and examines the various factors that influence these financial averages.

Defining Retirement Income Averages

When discussing average retirement income, it is helpful to distinguish between mean and median figures. The mean, or arithmetic average, is calculated by summing all incomes and dividing by the number of couples. This measure can be significantly influenced and skewed upwards by a small number of very high earners. In contrast, the median represents the middle value in a dataset when all incomes are arranged from lowest to highest, providing a more accurate picture of a typical couple’s financial experience.

Retirement income also encompasses both gross and net amounts. Gross income refers to the total earnings before any deductions. Net income is the amount remaining after taxes, such as federal and state income taxes, and other regular deductions, like Medicare Part B premiums, have been withheld. Distributions from traditional tax-deferred retirement accounts, like 401(k)s and IRAs, are typically subject to ordinary income tax rates upon withdrawal.

Primary Sources of Retirement Income

Married couples typically draw retirement income from a combination of sources, with Social Security benefits forming a component. This government program provides income based on an individual’s lifetime earnings. Spouses can receive separate Social Security checks based on their own work records, or if one has a limited work history, they may claim spousal benefits up to half of their working spouse’s full amount. Delaying benefits beyond full retirement age, up to age 70, can increase the monthly payout.

A pension, or defined benefit plan, is another source of retirement income for some couples. These employer-sponsored plans promise a fixed monthly payment for life, often determined by salary history, years of service, and age at retirement. Pensions provide a guaranteed income stream. However, their prevalence has decreased, making them less common for recent retirees.

Investment accounts, particularly defined contribution plans like 401(k)s and Individual Retirement Accounts (IRAs), also play a role. Traditional 401(k)s and IRAs allow tax-deferred growth, with withdrawals taxed as ordinary income in retirement. Roth 401(k)s and Roth IRAs are funded with after-tax contributions, and qualified withdrawals are tax-free. Required Minimum Distributions (RMDs) typically mandate withdrawals from traditional accounts starting at age 73 or 75, depending on birth year. Beyond these sources, some retirees supplement income through part-time work, annuities, or other investments like dividends or rental properties.

Current Average Retirement Income for Married Couples

The average retirement income for married couples varies. In 2020, the median income for couples over 65 was $72,800, while the mean was $101,500, reflecting higher earners’ influence. More recent 2023 data indicates the median household income for retired couples aged 65 and older reached $84,670 annually, or about $7,056 per month. These figures encompass all income sources, including Social Security, pensions, and investment withdrawals.

Social Security benefits alone often provide an insufficient portion of retirement income. As of 2022, the average monthly benefit for couples was about $2,739, totaling $32,868 per year. In January 2025, the estimated average monthly benefit for a single retired worker is around $1,975, suggesting a combined average for spouses could be $3,950 per month, or $47,400 annually. For many, Social Security typically replaces only about 40% of their pre-retirement income.

Retirement savings accounts contribute to overall income. Fidelity data from 2024 shows an average account balance of $247,900 for individuals aged 60 to 64. If a married couple has $500,000 in savings and follows a 4% annual withdrawal guideline, this could yield an additional $1,666 per month, or $20,000 per year. Combining these sources, an average couple might realize a total of $5,616 per month, or $67,392 per year, from Social Security and retirement account withdrawals.

Factors Affecting Retirement Income Averages

Many factors contribute to the wide range in retirement income averages for married couples. Pre-retirement earnings history plays a role, as higher lifetime earnings generally lead to greater Social Security benefits and increased capacity for savings. Industry and longevity of employment also influence income, particularly for those in sectors that historically offered traditional pension plans, such as government or manufacturing.

Health status and associated healthcare costs also impact a couple’s net retirement income. Health issues can necessitate earlier retirement, potentially reducing accumulated savings and benefits. Out-of-pocket healthcare expenses, including Medicare deductibles and co-payments, can reduce disposable income available to retirees, even with adequate gross income.

Geographic location is another determinant, as the cost of living varies across regions. A given retirement income amount will have different purchasing power depending on whether a couple resides in a high-cost urban or more affordable rural setting. Inflation also erodes the purchasing power of fixed income streams, meaning a static dollar amount buys less each year.

Finally, individual savings habits and investment performance shape retirement outcomes. Consistent contribution rates to retirement accounts, employer matching contributions, and long-term investment returns drive accumulated wealth. These elements collectively determine the financial resources available to a married couple during retirement.