While retirement is a welcome change from working around the clock, it comes with certain challenges. On the bright side, saving for retirement early will help one navigate such challenges easily. According to the Retirement Readiness Survey by Fidelity, the nationwide trend indicates that people are preparing for retirement by investing and saving effectively. But, it is important to understand various retirement plans and saving strategies to make the right decisions about one’s financial future.

How People Save
Most adults get their average retirement income from the following sources:
1. Earnings : 23% of adult Americans have work income, with the median retirement income earned being $25,000 annually, according to the AARP. It is important to note that this is the highest amount of any income source.
2. Assets : 63% of retirees rely on assets, with the median asset income (householder/spouse is 65 years of age and above and receives asset income) for American households is $1,542.
3. Pensions : Only a shocking 32% of retirees today have pensions, a number which is expected to decrease further.
4. Social Security : 85% of people aged 65 years and above get Social Security, the average for which is $1,360, according to a Social Security Administration factsheet.
5. Veteran’s Benefits/ Public Assistance : Around 7% of retirees derive income from government sources.

Average and Median Retirement Incomes
The data below depicts the average (mean) and median retirement incomes for households based on the age of the head of household:

1. Households (age 75 years and above)

• Median Income: $30,635
• Mean Income: $45,989

2. Households (age 65-74 years)

• Median Income: $47,432
• Mean Income: $68,905

3. Households (age 55-64 years)

• Median Income: $62,802
• Mean Income: $89,986

Boosting Your Average Retirement Income
These are the best ways to boost your average retirement income in the coming years:
1. Postpone retirement and start of social security
Postponing the retirement date is a good move. You could also postpone collecting your Social Security benefits until you reach full retirement age or longer to get a big boost to your average retirement income.
2. Postpone savings withdrawals and maximize investments
Work longer and delay withdrawing your savings, and optimize and maximize your investment by planning.
3. Make budgets and stick to them
Boosting average retirement incomes doesn’t need high incomes necessarily; one simply needs to make budgets and stick to them. Downsizing and living thriftily are enough to boost retirement savings.
4: Research about retirement savings, needs and incomings
Research about and calculate how much you’ll exactly need for and during retirement. You can get accurate forecasts and plan your retirement investment accordingly.

The best thing will be to get a retirement job. Remember the movie ‘The Intern’? That could be you!