What's a good monthly retirement income in 2025?

Retirement planning can feel like trying to hit a moving target. Just when you think you've figured out the magic number for a comfortable monthly retirement income, issues like rising costs, market shifts or lifestyle changes shift the goalposts. Adding to the uncertainty right now, though, is the fact that the economic environment is in flux. With issues like inflation trending slightly above the Federal Reserve's long-term target and ongoing healthcare price increases, many retirees are reassessing what they thought was enough.

In general, though, retirees in the U.S. spend an average of around $5,000 per month to cover living expenses, healthcare, travel and leisure activities. This is only an average, though. Some households get by on far less, while others need significantly more to maintain the lifestyle they want. Social Security continues to provide a base layer of income — the average monthly payment is $1,976 for 2025 — but most households need additional income streams to bridge the gap and cover discretionary spending. 

So, given the variables, how do you determine what a "good" retirement income really is? And how can you bulk up your retirement income to meet that goal?

Find out how you can round out your retirement portfolio with a reverse mortgage.

What's a good monthly retirement income in 2025?

The answer to this question isn't as straightforward as you might hope, and that's actually by design. Financial planners have moved away from universal recommendations because retirement needs can vary wildly based on factors like your location, lifestyle and health considerations. Generally, though, a good retirement income is about 75% to 85% of the pre-tax income earned in your last working year, according to financial planning experts. But let's translate that into real numbers. For someone earning $120,000 annually before retirement, this threshold means needing between $90,000 and $102,000 per year in retirement, or about $7,500 to $8,500 in monthly retirement income.

That's unfortunately not what most Americans actually have saved, though. According to the latest data, the average retirement income in the United States in 2025 for individuals is approximately $60,000 per year, which includes income from both high earners and lower-income retirees. The median retirement income, which is typically a better indicator of what the average retiree has saved, is closer to $47,000 annually, or around $3,900 per month, however. For married couples, the numbers are higher, with average retirement income around $100,000 annually, or about $8,300 per month. 

But here's where factors like geography become crucial. Those retiring in areas or states with high costs of living will likely need access to a lot more than the average retirement amount to live comfortably, as their overall costs will be higher. Meanwhile, retirees in lower-cost states might stretch their dollars much further. 

So, the key takeaway is that "good" is relative. Retirees in lower-cost regions may feel comfortable on a few thousand dollars per month, while those in expensive urban centers may require a lot more to cover the same standard of living. It's also important to consider the other unexpected costs you may face during retirement, such as long-term care, home repairs or family obligations.

Learn more about the guaranteed income options you have for retirement.

How to add guaranteed income streams to your retirement portfolio

In today's economic landscape, smart retirement planning means thinking beyond traditional savings accounts. It requires, in many cases, the creation of multiple income streams that can weather market volatility and inflation. And, there are a few ways you can do that.

Annuities offer the closest thing to a personal pension in today's retirement landscape. These insurance products provide a guaranteed stream of income for a set period or even for life. You can choose from a range of options, including immediate annuities that start paying right away or deferred annuities that begin payments at a future date. 

Reverse mortgages are another option worth considering for homeowners aged 62 and older. Reverse mortgages are designed to help retirees who are asset-rich and cash-poor. A reverse mortgage can convert a portion of your home equity into monthly payments or a line of credit that only needs to be repaid when you move out permanently, die or sell your home. 

Social Security optimization is another strategy that may be worth employing. By waiting until age 70 to claim Social Security, you can boost your benefit checks by 24% compared to claiming at full retirement age (which is 66 or 67, depending on the year in which you were born). The maximum monthly benefit for high earners who delay until age 70 exceeds $5,000 in 2025.

The bottom line

A good monthly retirement income in 2025 is less about a specific number and more about meeting your unique needs while maintaining flexibility. Start by estimating your essential expenses, then layer in discretionary spending and factor in inflation and potential surprises, too. Ultimately, the goal is to create a portfolio of income sources that allows you to live comfortably, confidently and on your own terms.