One of the first things people ask when planning for retirement is how much they’ll need annually. They’re so used to having that regular income and they want to know what it will take to keep living the life they want after they stop working.
Naturally, the answer is different for everyone, but the average income may be less than you expect. One study found that only 43 percent of retired individuals make more than $50,000 per year. In fact, the median annual household income clocked in at about $32,000 in annual pay.
The relationship status and age of the people in the study had a serious impact on the results. For instance, those who are retired in their 50s earned an average of $56,000 annually, while those who were at least 70 years old and up brought in just $29,000 per year. Plus, unmarried individuals lived on an average of $19,000 per year, while married couples needed about $48,000.
It’s important to keep this in mind if you’re considering a divorce later on in life. How much do you need? Are you counting on an asset, like a pension, that you’ll have to split with your ex? If you do have to divide your pension or retirement plan, does that change the age at which you can retire?
These are all important questions to ask, whether you’re already out of the workforce or just eyeing that future retirement. Make sure you really know where you stand, how the divorce could impact your financial picture and all of the legal rights and options that you have at this time.
Source: USA Today, “Could you live on just $32,000 per year? Most retirees do,” Robert Powell, accessed Dec. 27, 2017