Former President Joe Biden started his political journey in Washington, D.C., as one of the less affluent politicians, but he will exit with the most substantial pension in presidential history. Quite a turnaround, I’d say.
Demian Brady, vice president of the National Taxpayers Union Foundation, remarked, “The 83-year-old’s pension is $417,000 annually, which is, frankly, an unprecedented figure that surpasses the $400,000 salary of a sitting U.S. president.”
“Interestingly, Biden will earn more in retirement than the current president’s salary,” Brady explained. “This situation is rather unique, to put it mildly.”
According to the NTUF, past presidents are also entitled to lifetime benefits that cover aspects like office space, staff, health insurance, and travel costs.
The General Services Administration, responsible for handling the former president’s budget, has already set certain allocations for 2026.
Critics, including Brady, feel that the government pension system needs reforms due to the cost implications for taxpayers; however, they recognize Biden’s hefty pension is somewhat justified, considering the responsibilities he’s borne over the years.
In actuality, his $417,000 total stems from two separate pensions.
-
One pension per presidential term
-
In addition, he receives a pension from his eight years as vice president and over four decades as a senator from Delaware.
The pension he will receive matches his Cabinet-level salary, projected to be slightly above $246,400 in 2024. These guidelines were set back in 1958, intended as a response to the financial struggles faced by former President Harry S. Truman after leaving office.
But, did Truman actually struggle? Michael J. Devine of the Harry S. Truman Library and Museum challenges that narrative, noting that Truman “put away a good portion of his presidential earnings into savings” and owned substantial farmland in Missouri valued at around $750,000.
Nevertheless, the guidelines from the FPA still hold. Biden, having served 44 years in the Senate and eight years as vice president, is also eligible for a Congressional pension estimated to be around $166,374 in 2024.
NTUF predicts Biden’s total pension in 2024 at approximately $412,774, while this year sees estimates around $417,000.
It’s fair to say that many Americans, like Mr. Biden, would certainly appreciate a retirement pension that surpasses their previous salaries.
However, that seems unlikely for most.
A 2025 study from Schroders revealed that merely 40% of American retirees have adequately saved for retirement, with another 45% reporting unexpectedly high benefits.
While many may not reach the income levels of Biden’s retirement package, there are strategies to enhance the available funds.
For instance, individuals with numerous retirement plans (like 401(k)s or IRAs) might find it beneficial to consolidate their accounts. This could help with tax advantages and lessen fees on multiple accounts, while also diversifying investments.
Consulting a financial advisor could be a smart move to help merge investments into a more comprehensive account that allows for diverse investment options, including dividend stocks or REITs.
You can also discuss with your advisor strategies to optimize withdrawal procedures to avoid getting into a high tax bracket.
If you hold off on claiming social security benefits until age 67, there’s a good chance you could boost your monthly payouts significantly.
Meanwhile, those aged 50 and above who aren’t ready to retire can leverage catch-up contributions in 401(k)s and IRAs to ramp up savings for the future.
And don’t forget—the option to keep earning post-retirement remains. Whether through consulting, creative projects, or part-time work, you can set your schedule while earning extra cash.
This could mirror what previous presidents have done:
-
Dwight Eisenhower managed a cattle farm in Pennsylvania.
-
Calvin Coolidge wrote columns for newspapers.
-
Barack Obama operates a production company with his wife, Michelle.
They all ventured into side hustles after stepping down from their high positions.
