What Is a Good Monthly Retirement Income?

Planning for retirement isn’t just about saving—it’s about knowing how much income you’ll need each month to live comfortably. But “good” monthly retirement income looks different for everyone. Here are the key factors to consider and some common benchmarks to help you set a target.

1. Start with Your Lifestyle and Location

The biggest driver of retirement income needs is how you plan to live.

• Basic needs: Housing, food, utilities, and healthcare.

• Lifestyle choices: Travel, hobbies, or supporting family members.

• Location: A retiree in a low-cost rural area will spend far less than someone in a high-cost city.

A practical first step is to create a sample monthly budget for your retirement years, accounting for inflation and possible medical expenses.

2. Common Rules of Thumb

Financial planners often use these guidelines:

• 70–80% of Pre-Retirement Income: If you earn $6,000 a month while working, aim for about $4,200–$4,800 per month in retirement.

• 4% Rule: Save enough so you can withdraw about 4% of your portfolio each year. A $1 million nest egg could generate roughly $40,000 annually, or about $3,300 per month, before taxes.

These are starting points, not hard rules. Your own needs could be higher or lower.

3. Consider Other Income Sources

Your monthly income might come from multiple streams:

• Social Security benefits (average around $1,900/month per individual in 2025).

• Pensions or annuities.

• Investment withdrawals from 401(k)s, IRAs, or brokerage accounts.

• Part-time work or consulting if you choose to stay active.

The mix of these sources affects how much you need to save and how you manage taxes.

4. Factor in Healthcare and Inflation

Healthcare costs tend to rise with age and often outpace inflation. It’s wise to overestimate these expenses and build in a buffer for unexpected needs.

5. Create a Personalized Plan

A “good” monthly retirement income is the amount that lets you pay for essentials, handle surprises, and enjoy life without constant worry. For some, that’s $3,000 a month; for others, $8,000 or more.

Working with a financial professional can help you:

• Analyze your current savings.

• Project Social Security and other benefits.

• Build a tax-efficient withdrawal strategy.

Bottom line: There’s no one-size-fits-all number. Start with your desired lifestyle, run the math, and plan early so your retirement income fits the life you envision.

With the right planning and professional guidance, you can turn your retirement vision into reality. Schedule a conversation with our team today to explore your options and build a strategy that works for you.