Retired households spend less than the typical U.S. household in almost every category, which tracks with lower incomes and fewer dependents. Healthcare is the one exception: retired households spend $7,735 on healthcare compared to $6,197 for all consumer units, a reminder that medical bills, not everyday living costs, are the harder expense to plan around once someone stops working. For readers still building toward retirement, average retirement savings is the natural next data point to check against this spending.
Do retirees have enough income?
On average, retired households spend more than they take in, yet most retirees say they're doing fine financially. Among people who consider themselves retired, 81% say they're at least OK financially, compared to 70% of people who aren't retired, according to the Federal Reserve's 2025 Survey of Household Economics and Decisionmaking.
That disconnect suggests the income-versus-spending math on paper doesn't fully capture how retirees experience their finances. Many have already paid off a mortgage or other major debts by the time they retire, and "enough" may simply mean something different once a paycheck is no longer part of the picture.
Filling the gaps in retirement income
Retirement income and spending vary by age, occupation status, and income source. Still, two patterns hold across nearly every cut of the data: Income rarely runs far ahead of spending, and most retirees report managing fine regardless. That combination points to a financial picture that's tighter on paper than it feels day-to-day for many retirees.
Retirement income also isn't limited to a single source. The Motley Fool's research on where retirement income comes from breaks down how much retirees rely on Social Security versus pensions, 401(k)s, and other investments. Readers curious how their expected Social Security benefit compares to what current retirees receive can find the latest figures on The Motley Fool's average Social Security check page. For anyone still years from retiring, The Motley Fool's retirement savings gap statistics show how many working Americans are currently on track to have enough saved, and The Motley Fool's retirement planning guide is a starting point for building a plan. Retirees or near-retirees looking to stretch savings further can also compare high-yield savings accounts as a place to hold cash they aren't ready to draw down yet.
