Information Center

Income of Today’s Older Adults

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As concern about the adequacy of the nation’s retirement income programs moves to the forefront of public debate, policymakers and the public are looking to statistics to argue for or against the need for reform. Because there is a wide range of data from a variety of sources, the statistics can be confusing.

To help individuals understand the numbers, the Pension Rights Center worked with the Pension Policy Center to summarize government data on a series of related topics. The following information focuses on the income of today’s older adults. Sources can be found at the bottom of the page.

Income of All Older Adults from All Sources

In 2022, 57.6 million Americans were age 65 and older. Half of all older adults had less than $29,740 in yearly income from all sources.

In 2022, half of all older households received less than $50,290 in yearly income from all sources.

Table 1. Median annual income of the population, age 65 and older
Demographic unit	Income	Year
Individuals	$29,740	2022
Households	$50,290	2022

 

These statistics are “median” income figures. “Median” is a half-way point, where half of a group has more income and half has less.

There are also statistics for the “average” income of older adults. This measure, which is less widely used, adds up all of the incomes of the people surveyed and divides that figure by the number of people counted. The average or “mean” income of persons age 65 and older is higher than the median income because a significant number of older adults have very high incomes.

 

Table A. Measures of average (mean) income of the population age 65 and older
Demographic unit	Income	Year
Individuals	$47,060	2022
Consumer units	$60,359	2022

 

Income of Older Adults without Earnings

One out of five older adults have income from earnings. In 2022, the median income of the four-fifths of people age 65 and older who are fully retired was $24,190. The amounts were similar among all older age groups.

Table 2. Median income, by age, with no earnings, 2022
Age	Income of individuals
65+	$24,190
65-74	$23,870
65-69	$21,760
70-74	$25,650
75+	$24,450

 

For More Statistics on the Income of Older Adults:

• Income of Different Groups
• Sources of Income for Older Adults
• Income from Social Security
• Income from Pensions
• Income from Other Sources

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Sources

Explanation of the different measures of income

The income of older adults can be measured different ways depending on the economic unit that is being measured. For example, the unit can be the individual, aged units, consumer units, the household, the marital unit, or other measures. These measures also differ as to whether the unit includes any people under age 65.

• Income of Individuals: As noted in Table 1, in 2021 the median income of persons age 65 and older was $29,740. Measuring income for persons, rather than by households, understates the resources available to some persons and overstates the resources available to others. For example, the income from a pension received by the husband is attributed entirely to the husband, even though that income may be shared by the husband and wife. This measure has the advantage that it does not include persons younger than age 65, who would be included in a household measure.
• Income of Households: The median income of households where the householder was ages 65 and older was $50,290 in 2022 [Table 1]. A household consists of all the people who occupy a housing unit.  A household can consist of more than two people, some of whom may be younger than age 65.
• Income of Consumer Units: The average income of consumer units 65 and older in 2022 was $60,359. Consumer units are defined similarly to households, but may have more people than households.  The average number of people in a consumer unit age 65 and older is 1.4.

Source for Population Figure

• U.S. Census Bureau Population Estimate, July 2022.

Source for Consumer Units Data

• “Consumer Expenditure Survey, 2022,” U.S. Department of Labor, Bureau of Labor Statistics, Table 1300.

Table 1. Median Income of the Population 65+

• March 2023 Current Population Survey, PINC-08& HINC-01.

Note: Census Bureau publications also report a second median household income figure. This lower figure, which is from the same Current Population Survey, includes households with no income (1% of total) and does not include households where the head of the household is younger than age 65, even though the spouse or partner of the household head is age 65 or older.

Table A. Average Income Figures 

• March 2023 Current Population Survey, PINC-01.
• Average Income of Consumer Units:  “Consumer Expenditure Survey 2022,” U.S. Department of Labor, Bureau of Labor Statistics, Table 1300.
  Data: 2022 Consumer Expenditure Survey

Table 2. Income of Older Adults without Earnings

• March 2023 Current Population Survey, PINC-01.

 

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