Knowing an average retirement income is importart for people who are beginning to plan for their retirement early. They make up plans on what they want to do during their retirement years and try to compute for their expenses during that time.
They are comparing their projected figures against the prevailing retirement income. They try to see whether they will be able to support themselves with their retirement income or whether they need alternative sources of income in order to support the kind of life they want to live after retirement.
In 2008, the average retirement income of people who retire at the age of 65 and older was $29,214 according to the Employee Benefit Research Institute. However, from within that same group of retirees, those who had bachelor degrees had an average income of $45,948. Those who completed a graduate degree have an even higher average income of $62,777.
It is evident that people who have good educational backgrounds have a higher income during their retirement.This stems from the fact that they get to occupy high-ranking positions in the workforce that pays them a large amount of money. However, there are more people who did not complete a college degree and are working blue-collar jobs where they do not earn as much. Hence, the average amount is lowered.
Many people have a lot of plans for themselves during their retirement. A lot have dreams of jetting of into the tropics and settle for a more laid back lifestyle there.There are people who were able to save up quite a nest egg that will support this kind of lifestyle they want during their retirement years.There are those whose average retirement income barely reached the level of their estimated expenses.Of course that person would really need to tone down their retirement plans.However, that would also take away some of the leisure one deserves after a lifetime of hard work.
The purchasing power of money diminishes over time.What your money can buy now, it can no longer buy in the next 10 years.While your retirement income may support your standard of living for the first two years, when inflation rates rise, that same amount of money you are spending for your retirement will no longer be able to go as far in the future.
The average retirement income is a very good index of determining if you will be able to live the kind of life you want during retirement.Knowing where you stand on your projected living expenses, you would know if you would be required to search for additional income even after you retire.
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