What is a good retirement income?

You'll need enough income from Social Security, savings, and other sources in retirement to cover all of your living expenses. Not only that, but it's wise to plan for a 30-year retirement and to make sure your income sources will be sustainable for decades. Everybody has different income needs, which depend on your current lifestyle and goals for after you stop working.

At what age do you get 100% of your Social Security?

You'll get your full Social Security benefit if you wait until you reach full retirement age to start collecting your monthly retirement payments. If you were born in 1960 or later, your full retirement age is 67 years old; it's slightly younger if you were born earlier.

What is the best age to retire?

There's no perfect answer. The full retirement age for Social Security is 67 for most American workers, and the age of Medicare eligibility is 65. Some people aspire to retire early if they can afford to do so financially, while others love working and don't want to retire until they are physically unable to continue. There are a lot of factors that determine your ideal retirement age.

Can I still work part-time in retirement?

Yes, many retirees work part-time. However, if you retire and collect Social Security and have not yet reached full retirement age, working in retirement could potentially result in some or all of your Social Security benefits being withheld.

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Planning to Retire in 2026: A Complete Guide

If you're about to stop working, here's a look at some need-to-know financial topics.

By Matthew Frankel, CFP – Updated Feb 4, 2026 at 5:46 PM EST | Fact-checked by Parker Hicks

Key Points

Learn to manage healthcare costs by using HSA contributions and understanding Medicare.
Factor in inflation by investing in dividend stocks and Treasury Inflation-Protected Securities.
Maximize Social Security by delaying benefits until age 70 to increase monthly checks.

Many of us look forward to it for decades -- retirement! In this retirement planning guide, we'll cover everything you need to know about the financial side of it. You'll have the information you need to meet your retirement goals and stop working when you want.

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The best-case scenario: You have enough saved to retire

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The medium-case scenario: You have nearly enough saved to retire

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The worst-case scenario: You don't have enough saved to retire

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To get an idea of what a deferred annuity might offer, know that a 65-year-old woman would have recently been able to spend $100,000 for an annuity that would start paying her in five years, offering $828 per month for the rest of her life. Deferred annuities can be useful tools to help you avoid running out of money later in life.

In times of higher interest rates, annuity contracts will offer bigger payouts. When rates are low, consider a "laddering" strategy, where you spend just a portion of the amount you want to spend on annuities first, and then spend another portion in a year or two, when you hope interest rates will be higher, and so on.

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A highway sign says retirement next exit. — Image source: Getty Images.

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Retirement FAQs

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.

TMFMattFrankel

@MattFrankelCFP

The Motley Fool has a disclosure policy.

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Social Security

Know how much to expect, how to decide when to take it, and how to increase benefits and avoid reductions

It's vital to know how much income you can expect from Social Security, as for most people, it will make up a big chunk of their retirement income. For context, note that the average monthly Social Security retirement benefit check was $2,008 as of August 2025, or approximately $24,000 per year.

Clearly, that's not going to be sufficient for most people, which is why you should start planning, saving, and investing as early as possible. That's just an average, though -- if you earned an above-average income over your working life, you'll collect more.

The maximum benefit for those retiring in 2026 at their full retirement age is $4,152, or nearly $50,000 per year.

To get a better idea of how much you can expect to receive, head over to the Social Security Administration (SSA) website and set up an account. Once you do, you can click in at any time to review the SSA's record of your earnings, year by year, and to see its estimate of your Social Security benefits based on when you claim them.

When can you claim Social Security?

You can claim your benefits as early as age 62 and as late as age 70, with your checks permanently smaller if you claim early and larger if you delay. Remember that if you start collecting your Social Security benefits at age 62, even though your checks might be on the small side, you'll get many more of them than if you start at age 67 or 70.

If you don't like the expected benefits you're seeing for yourself, know that there are various ways to increase your Social Security benefits. For example, the formula to determine benefits is based on your earnings over the 35 years in which you earned the most. So if you only worked for 31 years, it will be incorporating four zeros, which will bring down your benefits.

If you can work a few more years, you'll end up with bigger checks. Even if you've already worked 35 years, if you're earning much more now than you ever did, by working an extra year or two, you'll be able to have a few years' worth of low incomes kicked out and replaced by higher incomes.

Taxes in retirement

What you need to plan for and how to minimize taxes

Another key concern in retirement is taxes. Here's what you need to know:

Social Security: Your Social Security income may be taxed if your income crosses a certain threshold.
Traditional IRAs and 401(k) accounts: The traditional forms of these retirement savings accounts allow you to contribute money on a pre-tax basis, thereby reducing your taxable income in the year of contribution. In exchange for that upfront tax break, your withdrawals in retirement will be treated as taxable income. (Note that your tax bracket in retirement may be lower than your bracket when you were working.)
Roth IRAs and Roth 401(k) accounts: These accounts offer no upfront tax break, but if you play by the rules, you can withdraw money from them in retirement -- tax-free. That's because you were already taxed on the funds you contributed.
Investment income: Your other investments face taxes, too. Short-term capital gains (from investments held for a year or less) are taxed at your ordinary income tax rate, while long-term capital gains get taxed at 0%, 15%, or 20%. Dividend income from most stocks held for more than 60 days is generally taxed at 0%, 15%, or 20%, as well.
Interest income: Most interest income is treated as ordinary income and is subject to taxation. Treasury bonds and bills only face federal taxes, while corporate bonds are generally taxable at the federal, state, and local levels. Municipal bonds tend to be tax-free at the federal level.

The non-financial side of retirement

As you plan for your retirement, venture outside the financial realm a bit and think about how you will spend your days. Many retirees are surprised to discover that they feel a bit restless and perhaps even depressed once they no longer have the structure of their working days, and they have lost the opportunities to socialize with others that work offers, as well.

Aim to stay active physically and socially when you're retired, and you might start getting into some activities and groups even before you retire, to help make the transition to retirement smoother. Staying fit and healthy can keep you happier, too, and should keep healthcare costs down. Exercise and volunteering are some activities that keep most people's spirits up.

Planning to Retire in 2026: A Complete Guide

If you're about to stop working, here's a look at some need-to-know financial topics.

Key Points

The best-case scenario: You have enough saved to retire

The medium-case scenario: You have nearly enough saved to retire

The worst-case scenario: You don't have enough saved to retire

Related retirement topics

Retirement Planning: How to Map Out Your Financial Success

What Is the 4% Rule?

Retirement Plans Options for the Self-Employed

Working While on Social Security in 2026

Retirement FAQs

About the Author

Our Guides

Premium Investing Services

The best-case scenario: You have enough saved to retire

The medium-case scenario: You have nearly enough saved to retire

The worst-case scenario: You don't have enough saved to retire

Retirement Planning: How to Map Out Your Financial Success

What Is the 4% Rule?

Retirement Plans Options for the Self-Employed

Working While on Social Security in 2026

Retirement FAQs

What is a good retirement income?

At what age do you get 100% of your Social Security?

What is the best age to retire?

Can I still work part-time in retirement?

Healthcare costs

Find out how much you'll need and how to save for it

Inflation

Learn how to manage how far your money will go over time

Social Security

Know how much to expect, how to decide when to take it, and how to increase benefits and avoid reductions

When can you claim Social Security?

Annuities

Decide if this type of guaranteed retirement income is right for you

Early retirement

See if you could call it a career ahead of schedule

Taxes in retirement

What you need to plan for and how to minimize taxes

The non-financial side of retirement

Related retirement topics

Seeking professional help