Key Takeaways
\nAt age 65, the average Social Security payment is $1,583 per month, with men receiving more ($1,756) and women less ($1,426).The average 401(k) balance for people aged 65 to 69 is $252,800\u2014providing about $800 per month to spend under the 4% rule.With an average of about $2,400 per month from Social Security and 401(k) savings combined, many retirees may face financial challenges without additional support or income, particularly in higher-cost areas.Options like downsizing, relocating, part-time work, and reverse mortgages can help stretch limited resources.<\/p>\n
At age 65, many retirees find themselves relying on a combination of Social Security benefits and retirement savings to make ends meet, with the average Social Security<\/a> payment at $1,583 per month. While Social Security provides a safety net, it was never designed to fully replace income, and for most, it falls short of covering basic living expenses.\n<\/p>\n This leaves retirees needing to stretch limited resources, plan carefully, and often make tough financial decisions to navigate retirement comfortably. Here\u2019s how much the average 65-year-old receives in Social Security benefits\u2014and what the average retiree should know as a result.\n<\/p>\n How Much Does the Average Person Receive in Social Security at 65? <\/p>\n The average Social Security benefit for people at age 65 is $1,583 per month, according to the Social Security Administration. For men, the average is higher, at $1,756, and for women, it\u2019s lower, at $1,426.\n<\/p>\n It\u2019s important to note that people are not eligible for full Social Security<\/a> retirement benefits at age 65. Though you can start receiving them as early as age 62, the benefits will be reduced by a small percentage each month before your full retirement age, which is 67 for people born in 1960 and later. As a result, the average monthly benefit for a retired worker is higher, at $1,976. At the exact age of 65, your benefits will be reduced to 86.7% of the full amount.\n<\/p>\n These numbers mean most retirees will need to supplement their Social Security benefits with income from their retirement savings, says Scott McClatchey<\/a>, a senior wealth advisor at South Carolina-based Ballast Rock Private Wealth. \u201cThere just won\u2019t be enough available to pay bills and live a comfortable, typical span retirement,\u201d he adds. \u201cIt\u2019s grim.\u201d\n<\/p>\n Average 401(k) Balance at 65 <\/p>\n Hopefully, your account balance has grown as you have saved through the years<\/a>. So, how much does the average 65-year-old have<\/a> in their retirement account? According to Fidelity, the average 401(k) balance for people ages 65 to 69 is $252,800. If you’re following the 4% rule for withdrawals<\/a>, you’d have about $10,100 available for your first year of retirement, or roughly $800 per month.\n<\/p>\n What Does This Mean for You? <\/p>\n With about $2,400 to spend monthly from their 401(k) and Social Security benefits, \u201cthe average retiree is not in especially strong shape,\u201d says Justin Pritchard<\/a>, a Certified Financial Planner at Colorado-based Approach Financial. \u201cThat said, there are people who can live on that: They typically live in lower-cost areas, and as long as life doesn\u2019t throw them any curveballs, they can meet their needs,\u201d he adds.\n<\/p>\n For areas with a higher cost of living<\/a>, however, it\u2019s a tougher call. \u201cThese averages highlight the challenges many retirees face,\u201d says Daniel E. Milks, a managing partner at Fiduciary Organization<\/a>.\n<\/p>\n \u201cSocial Security was never meant to fully replace income in retirement; it\u2019s designed as a safety net,\u201d he says, adding: \u201cUnfortunately, many retirees end up relying on it as their primary or sole income source, which can lead to financial strain.\u201d\n<\/p>\n Milks offers some options for an average retiree facing financial difficulties. The key consideration, he says, is learning how to stretch these limited resources by taking a \u201chard look\u201d at their monthly expenses, particularly housing and healthcare, which are often the largest portion of a retiree\u2019s budget. Some retirees might consider downsizing or relocating to an area with a lower cost of living.\n<\/p>\n Tip<\/p>\n Another option is choosing to delay claiming Social Security benefits until the age of 70, when you can lock in the maximum benefit<\/a> thanks to delayed retirement credits.<\/p>\n