Former U.S. president Joe Biden began his Washington, D.C. career as one of the least wealthy politicians and ended it with the highest pension in POTUS history. And that’s no malarky.
Demian Brady (1), vice-president of the National Taxpayers Union Foundation (NTUF), told the New York Post that the 83-year-old’s pension is $417,000 a year — an “historically unusual” amount outpacing the U.S. presidential salary of $400,000 (1).
“Biden is making more in retirement than the current president gets (in a salary),” Brady told the Post. “It’s a very unique situation.”
According to the NTUF, former presidents also receive lifetime “allowances” for post-presidential office spaces and staff, office supplies and health and travel coverage. (2)
The General Services Administration (GSA), which handles the budgets for former presidents, has already allocated the following allowances for 2026 (3):
While critics like Brady believe the government pension system is “ripe for reform” due to its cost to taxpayers, Biden’s massive pension is an exception to the rule resulting from the multiple hats he’s worn over the years.
In fact, the $417,000 total is technically two pensions combined:
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Former presidents get a pension equal to a cabinet secretary’s salary — just over $246,400 in 2024. This guideline was established in 1958 under the Former Presidents Act (FPA), apparently in response to ex-POTUS Harry S. Truman’s financial struggles upon leaving office.
Did Truman struggle? Michael J. Devine, director of the Harry S. Truman Library and Museum, challenges that idea, writing that Truman “put a considerable amount of his presidential salary into savings” and owned 400 acres of Missouri farmland worth an estimated $750,000 (4)
Nevertheless, the FPA still applies.
Meanwhile, as Biden also served 44 years as a senator and eight years as U.S. vice-president, he’s entitled to a congressional pension, which amounted to around $166,374 in 2024, according to the NTUF.
In total, the NTUF estimated Biden’s combined 2024 pensions equalled $412,774, leading to the $417,000 estimate for this year.
It’s safe to say that a large number of Americans would welcome a retirement pension that, like Biden’s, paid out more than what they earned while working.
Sadly, that’s unlikely.
A 2025 survey by investment management firm Schroders found that only 40% of American retirees had enough saved for retirement. Another 45% reported unexpectedly high retirement expenses (5).
But while you may not reach Biden’s retirement income, there are ways to maximize the money you do bring in.
For example, for those with multiple retirement accounts (401(k)s, IRAs, Roth IRAs or others) or pensions like Biden, consolidating them could offer tax benefits and reduce fees you pay on multiple accounts while allowing you to diversify your investments.
It’s wise to speak with a financial advisor to help you consolidate those investments into an account that allows for a wider scope of investment opportunities, such as dividend-paying equities and real estate investment trusts (REITs). (6)
You’ll also want to speak to an advisor about how to maximize your withdrawal strategy and avoid ending up in a higher tax bracket.
If you hold off claiming Social Security until you’re 67, you can significantly boost the monthly benefits you receive.
In the meantime, those over age 50 who aren’t ready to retire can utilize 401(k) and IRA catch-up contributions to boost savings for when they do call it a day.
And there’s always the option to keep earning a salary in retirement by utilizing your skills with a side hustle.
Be it consulting work, monetizing a creative passion or simply taking on a part-time job, you could control your work hours while enjoying the extra money it brings in.
And then you’d truly be following in the footsteps of former presidents, like:
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Dwight Eisenhower raising cattle on a Pennsylvania farm.
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Calvin Coolidge writing a syndicated newspaper column.
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Barack Obama running a production company with his wife and former First Lady Michelle Obama.
They all started side hustles after retiring from the highest office in the land.
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New York Post (1); National Taxpayers Union Foundation (2, 4); General Services Administration (3); New York Times (4); Schroders (5); Merrill (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
