Retirement can be one of the most challenging phases because not only are you going through a major lifestyle change, but you’re also having to figure out how to make your savings last the rest of your life. Research from the National Council on Aging found that 80% of older adults in the U.S. are financially struggling or at risk of struggling.
Read More: I’m a Florida Real Estate Agent: 2 Reasons My Retired Clients Are Leaving the State
Find Out: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too
Part of these struggles may stem from the relatively low benefit amounts that Social Security recipients receive. On average, monthly Social Security retirement benefits for a 75-year-old equal $2,064.53, according to Social Security Administration (SSA) data, as of December 2024.
Yet even those near the top of the socioeconomic ladder can struggle. An analysis by the Center for Retirement Research at Boston College found that among older Americans considered to be high-risk borrowers due to their debt burdens, about one-fifth have high levels of overall wealth, but they’re just perhaps not managing it ideally.
However, relying on Social Security typically isn’t enough to pull retirees out of a hole, even for those receiving the most benefits.
Trending Now: Suze Orman’s Secret to a Wealthy Retirement–Have You Made This Money Move?
Calculating Average Upper Class Social Security Benefits at Age 75
The average 70-79 year old in the 90th percentile of Social Security benefit amounts gets $3,105 per month, according to the SSA. That’s about 59% more than the $1,951 average for 70-79 year olds at the median.
So, if we add 59% to the average reported Social Security retirement benefits of a 75-year-old — $2,064.53 — that results in the average 75-year-old, upper-class retiree at the 90th percentile of Social Security benefits getting an estimated $3,283 per month.
While that’s a lot more than the average, it still hardly covers necessities like housing payments, medical care, groceries, and more, especially for those who don’t have a spouse to combine benefit checks with. That’s why relying on other sources of retirement income, like a 401(k) or individual retirement account (IRA), is so important.
Discover Next: The Money You Need To Save Monthly To Retire Comfortably in Every State
Urban Adams, wealth manager at Dynamic Wealth Advisors, noted that based on the clients he works with, Social Security benefits are “largely supplemental and factored into their financial plan with other resources — passive income, retirement savings, non-retirement savings, etc.”
“As it relates to those in the 90th percentile, it is probably likely that they earned a high wage throughout their working career and may also have higher underlying expenses,” he added, meaning that Social Security checks typically aren’t enough to rely on.
Plus, while upper-class retirees may have more of these other income sources to rely on, having wealth doesn’t always equate to being in the best financial position if expenses are too high, as the Boston College study shows.
So, no matter where you fall on the scale of average retirement benefits, it’s important to have a full retirement plan that balances your income and expenses in a way that can help you enjoy this phase of your life, rather than stress over bills.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: How Much the Average Upper Class Retiree Receives in Benefits at Age 75