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AUTHOR: R Quinn on 4/17/2026
I asked my friends AI, what percentage of pre-retirement income to retirees actually live on. Of course, most of the data is survey based. The answer was 66% on average.
A T. Rowe Price/NewRetirement survey found that, nearly three years into retirement, retirees report living on 66% of pre-retirement income on average—and 57% said they live as well or better than before.
A Goldman Sachs Asset Management survey showed retirees receive ~60% of pre-retirement wages on average, with high satisfaction (71%).
The Center for Retirement Research (CRR-Boston College) noted many retirees get by on less than 70%, with 4 in 10 on 60% or less. Bankrate analysis put the nationwide average at ~60%.
Interestingly, the needed percentage varies by income level.
• Low income (e.g., under ~$50k pre-retirement):
• Often need 80-104% replacement.
• JPMorgan (Chase data): ~104% for $30k households.
• Boston College CRR: ~80% target.
• Fidelity: Higher end (~80%+) for < $50k band.
• Middle income (e.g., $50k-$150k):
• Typically 70-80%.
• T. Rowe Price: Around 73-77% across $50k-$150k, varying slightly by marital status.
• CRR: ~71% for middle group.
• High income (e.g., $200k+):
• Often 55-70% (or lower).
Social Security replaces a larger percentage for lower income. For someone earning $30,000 at FRA retirement, the replacement is about 55%. Forty percent replacement from Social Security is more typical.
So why do so many seniors claim to be struggle financially?
Seniors feel they struggle due to a mix of real economic pressures: Fear of long-term care costs, inflation, but it is a myth retirees fully live on a fixed income (besides most Americans do not reliably receive a dedicated annual pay raise (merit, COLA, or performance-based) at their current job every year), inadequate savings and longevity are also key factors among those claiming to be struggling.
Much of this has geographic elements. Living in North Jersey with high property taxes and other costs is much different than living in South Carolina.
Something that should be obvious, but to many people is not, is that if you were low income, truly living paycheck to paycheck, while working, you will not be better off in retirement.
So what is the answer? For lower income Americans the Social Security replacement percentage needs to be increased. For all others the answer in my view is enhanced financial education, better financial/spending discipline, always making savings the spending priority (perhaps forced savings in some way), and long-term realistic retirement planning.
Taking the view that all this is a personal responsibility only and if it is screwed up, tough luck, is too common. The reality is that society pays the price sooner or later.
QUINNSCOMMENTARY 
I think the last paragraph by BenefitJack is important to any conversation about Social Security. You can get some variation of answers when you ask how many in the US are receiving means tested or welfare benefits. Legalclarity.org. says 31%, others give similar answers. The prospect of these recipients saving for retirement is zero. Some are already Social Security age.
The retirement preparation question is really for those who work, day in and day out and year in and year out.
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Unfortunately, retirement preparation never works unless it is a priority for the individual.
And, by definition, individuals who fail to prioritize, will generally fail to prepare, and will likely have the same or a lesser standard of living in retirement compared to the one they had while working.
That’s why we end up with welfare programs – also for those who are incapable of self care. And, so long as America attempts to insulate individuals from their own financial decisions and actions, so long as America attempts to excuse them from taking personal responsibility, Congress will continue to buy votes with the tax dollars of your minor children, and generations too young to vote, incurring annual national deficits of $1 – $2 Trillion a year, as we watch our national debt continue to increase dramatically every year for as far as the CBO cares to predict or as far as the eye can see.
As of today, the projection for our national debt, at current spending and revenue rates, is $155+ Trillion in just 20 years!
Some burdens are exascerbated by attempting to transfer them from individuals to society. That is not the structure of our Social Security system. That system requires payment of a qualifying level of taxes for a period of 40 quarters to qualify for any benefit, and, payment of a qualifying level of taxes over a period of 35 years to qualify for a benefit that is expected to keep individuals out of poverty.
If you want to raise individuals up who fail to meet those minimums, do so intentionally, with formal welfare programs, not by screwing over the Social Insurance system.
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