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 to 59 and 60 to 64 age groups to the later-stage 75-plus age group.

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We also examined 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're below the local benchmark.

To maintain a similar standard of living in your area, you might decide you need to increase your savings or reduce your expected spending.

4 mature adults standing and sitting on bars from a bar graph to illustrate bank balance and financial status.

Retirement income by age, median and mean figures

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 ages 60 to 64 is $83,770. That figure drops by $35,980 (nearly 43%) for individuals age 75 and older. 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.

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Age of household	Median income	Mean income
Ages 55 to 59	$101,000	$147,500
Ages 60 to 64	$83,770	$125,100
Ages 65 to 69	$68,860	$102,000
Ages 70 to 74	$61,780	$92,600
Ages 75 and older	$47,790	$73,820

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 required minimum distributions (RMDs), to protect the longevity of your portfolio. Your goal isn't just to reach the average, but to outlast it.

Colorful USA map. United States of America regions with different colors and names for states

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 can't 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're 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 might want to take note of this as you're considering a move.

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Average retirement income by state
Rank	State	Average retirement income
34	Alabama	$24,896
2	Alaska	$36,023
18	Arizona	$28,725
49	Arkansas	$21,967
5	California	$34,737
6	Colorado	$32,379
8	Connecticut	$32,052
9	Delaware	$31,283
1	District of Columbia	$43,080
15	Florida	$30,158
21	Georgia	$27,961
7	Hawaii	$32,294
36	Idaho	$24,752
10	Illinois	$31,223
51	Indiana	$20,542
48	Iowa	$22,308
47	Kansas	$23,294
37	Kentucky	$24,419
24	Louisiana	$26,512
30	Maine	$25,545
3	Maryland	$35,732
11	Massachusetts	$31,198
39	Michigan	$24,389
27	Minnesota	$26,385
46	Mississippi	$23,347
40	Missouri	$24,125
31	Montana	$25,463
43	Nebraska	$23,821
12	Nevada	$31,171
26	New Hampshire	$26,395
13	New Jersey	$30,660
16	New Mexico	$29,707
14	New York	$30,326
33	North Carolina	$25,324
45	North Dakota	$23,347
28	Ohio	$26,316
42	Oklahoma	$23,963
20	Oregon	$28,565
38	Pennsylvania	$24,392
23	Rhode Island	$27,118
29	South Carolina	$26,227
41	South Dakota	$24,020
44	Tennessee	$23,715
22	Texas	$27,471
19	Utah	$28,632
35	Vermont	$24,870
4	Virginia	$35,306
17	Washington	$29,351
50	West Virginia	$21,118
32	Wisconsin	$25,378
25	Wyoming	$26,465

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Using data to your advantage

The data show 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.

Donna joined Kiplinger as a personal finance writer in 2023. She spent more than a decade as the contributing editor of J.K.Lasser's Your Income Tax Guide and edited state specific legal treatises at ALM Media. She has shared her expertise as a guest on Bloomberg, CNN, Fox, NPR, CNBC and many other media outlets around the nation. She is a graduate of Brooklyn Law School and the University at Buffalo.