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Americans hoping to retire soon aren’t likely to feel that the timing’s ideal. Even those with decades worth of savings are taking huge hits, no thanks to the triple whammy of inflation, high interest rates and a volatile stock market.
Yes, inflation is slowing down, at 2.4% In October, back to levels last seen in February 2021.
But have incomes kept up? With fears of the upcoming election upsetting the markets, that question suddenly matters much more. And is there any hope Social Security can come to a retiree’s rescue?
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For many Americans who count on Social Security as the foundation of retirement income, it’s next to impossible to make do. Social Security retirement benefits averaged $1,862 per month in 2024, for a total of $22.344 per year, according to the Social Security Administration. Broken down weekly, that’s roughly $430 — not exactly a king’s ransom.
And even if your retirement income does include some money from other sources, is the final tally enough to retire the way you want to?
What the average American retiree makes
Americans 65 years and older reported a median annual income of $61,830 in 2023, according to the United States Census Bureau. So what else can you do to make sure you have enough money in retirement?
If you prepare yourself by consistently contributing to your retirement accounts, like an IRA or 401(k), you can build a comfortable nest egg to ease some of that financial worry. And there are plenty of options to diversify your IRA so all your retirement eggs aren’t in one basket.
Take for example a gold IRA. Gold can be a potential ‘safe haven’ to mitigate the impact of inflation. Typically, it’s also more stable than stocks during economic downturns and recessions. In fact, gold has increased in value sevenfold over the last 100 years.
With the help of American Hartford Gold you can open a gold IRA and help preserve your retirement with an inflation-resistant asset. One of the country’s most trusted precious metals companies – with an A+ rating from the Better Business Bureau – American Hartford Gold has helped thousands of clients protect their retirement.
When you sign up, you’re eligible to receive complimentary silver and a free investor guide that can help in both the protection and growth of your wealth.
It is also worth noting, you can diversify your retirement investments by investing your money into the real estate market within your Roth IRA.
For example, Firms like First National Realty Partners allow you to do just that.
FNRP is a private equity firm that gives accredited investors access to necessity-based commercial real estate without the hassle of being a landlord with the potential to passively collect distribution income. The firm has developed relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods, and provides insights into the best properties both on and off-market.
The FNRP team makes investing in commercial real estate convenient and simple by offering white-glove service to investors. They act as the deal leader, providing expertise and doing the legwork streamlining the process, while investors can use their secure platform to explore available deals, engage with experts and easily make an allocation.
Read more: 5 minutes could get you up to $2M in life insurance coverage — with no medical exam or blood test
How much will you spend in retirement?
To answer that question, a number of critical factors must be addressed: Your location and cost of living, your overall health, your monthly expenses and your discretionary spending.
The U.S. Bureau of Labor Statistics broke down the expenses of those 65 and older. Taking into account combined income sources, including savings and Social Security benefits, Americans aged 65 and over spent an average of $57,818 as of 2022 — and with the inflation rates we’ve seen in the last two years, that figure will likely be higher as of the next census. Especially once medical expenses are factored in, it’s risky at best to rely on Social Security alone to cover all your retirement expenses.
Of course, retirement expenses and essential purchases are inevitable. But you can make the most out of them by downloading the Acorns app. With Acorns, when you make a purchase, the app automatically rounds up the total cost to the nearest dollar and invests the remainder in a diversified portfolio. So even when you have to spend, you’re investing money at the same time. You can also link these investments to your IRA, so you’re maximizing your retirement savings with every purchase you make.
With expenses often outpacing income, it’s no wonder that many American retirees feel the need to re-enter the workforce.
So what will it be: back to the grind or back to the drawing board? If you aren’t sure about your next steps, consider meeting with a financial advisor to figure out a plan.
Searching for one doesn’t need to be a long stressful process, WiserAdvisor can help you find an advisor quickly and easily — and the platform is free to use.
To ensure your retirement fund is on the right track— and help you spend less time worrying about it — WiserAdvisor matches you with vetted financial advisors suited to your unique needs. With no fees to get started, you can browse your advisor matches with WiserAdvisor’s comparison tool and book a free consultation in just minutes.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
