Former U.S. president Joe Biden started his Washington, D.C. profession as one of many least rich politicians and ended it with the best pension in POTUS historical past. And that’s no malarky.
Demian Brady (1), vice-president of the Nationwide Taxpayers Union Basis (NTUF), advised the New York Publish that the 83-year-old’s pension is $417,000 a yr — an “traditionally uncommon” quantity outpacing the U.S. presidential wage of $400,000 (1).
“Biden is making extra in retirement than the present president will get (in a wage),” Brady advised the Publish. “It’s a really distinctive scenario.”
In response to the NTUF, former presidents additionally obtain lifetime “allowances” for post-presidential workplace areas and employees, workplace provides and well being and journey protection. (2)
The Basic Providers Administration (GSA), which handles the budgets for former presidents, has already allotted the next allowances for 2026 (3):
Whereas critics like Brady consider the federal government pension system is “ripe for reform” attributable to its price to taxpayers, Biden’s huge pension is an exception to the rule ensuing from the a number of hats he’s worn through the years.
In reality, the $417,000 complete is technically two pensions mixed:
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Former presidents get a pension equal to a cupboard secretary’s wage — simply over $246,400 in 2024. This guideline was established in 1958 below the Former Presidents Act (FPA), apparently in response to ex-POTUS Harry S. Truman’s monetary struggles upon leaving workplace.
Did Truman battle? Michael J. Devine, director of the Harry S. Truman Library and Museum, challenges that concept, writing that Truman “put a substantial quantity of his presidential wage into financial savings” and owned 400 acres of Missouri farmland value an estimated $750,000 (4)
However, the FPA nonetheless applies.
In the meantime, as Biden additionally served 44 years as a senator and eight years as U.S. vice-president, he’s entitled to a congressional pension, which amounted to round $166,374 in 2024, in accordance with the NTUF.
In complete, the NTUF estimated Biden’s mixed 2024 pensions equalled $412,774, resulting in the $417,000 estimate for this yr.
It’s protected to say that numerous People would welcome a retirement pension that, like Biden’s, paid out greater than what they earned whereas working.
Sadly, that’s unlikely.
A 2025 survey by funding administration agency Schroders discovered that solely 40% of American retirees had sufficient saved for retirement. One other 45% reported unexpectedly excessive retirement bills (5).
However whilst you could not attain Biden’s retirement earnings, there are methods to maximise the cash you do herald.
For instance, for these with a number of retirement accounts (401(ok)s, IRAs, Roth IRAs or others) or pensions like Biden, consolidating them might supply tax advantages and scale back charges you pay on a number of accounts whereas permitting you to diversify your investments.
It’s sensible to talk with a monetary advisor that will help you consolidate these investments into an account that enables for a wider scope of funding alternatives, reminiscent of dividend-paying equities and actual property funding trusts (REITs). (6)
You’ll additionally need to converse to an advisor about how you can maximize your withdrawal technique and keep away from ending up in a better tax bracket.
In case you maintain off claiming Social Safety till you’re 67, you possibly can considerably increase the month-to-month advantages you obtain.
Within the meantime, these over age 50 who aren’t able to retire can make the most of 401(ok) and IRA catch-up contributions to spice up financial savings for once they do name it a day.
And there’s all the time the choice to maintain incomes a wage in retirement by using your expertise with a facet hustle.
Be it consulting work, monetizing a artistic ardour or just taking up a part-time job, you may management your work hours whereas having fun with the additional cash it brings in.
And you then’d really be following within the footsteps of former presidents, like:
Dwight Eisenhower elevating cattle on a Pennsylvania farm.
Calvin Coolidge writing a syndicated newspaper column.
Barack Obama working a manufacturing firm along with his spouse and former First Girl Michelle Obama.
All of them began facet hustles after retiring from the best workplace within the land.
We rely solely on vetted sources and credible third-party reporting. For particulars, see our editorial ethics and tips.
New York Publish (1); Nationwide Taxpayers Union Basis (2, 4); Basic Providers Administration (3); New York Instances (4); Schroders (5); Merrill (6)
This text supplies data solely and shouldn’t be construed as recommendation. It’s offered with out guarantee of any variety.
