How to Make Money during Retirement in 2025

Retirement used to be synonymous with kicking back, relaxing, and watching the world go by. But in 2025, retirement looks a little different for many. Maybe you’re looking to stay active, combat inflation, or simply want some extra spending money – whatever your reason, making money in retirement is a savvy move. This article will walk you through realistic ways you can boost your income during your retirement years.

Key Takeaways

• Diverse Income Streams: Explore various avenues like part-time jobs, freelancing, online ventures, and leveraging assets to generate income.
• Flexibility is Key: Retirement income strategies should offer flexibility and align with your lifestyle and interests.
• Realistic Expectations: Understand the earning potential, fees, and time commitment associated with each income method.
• Skills & Experience: Your existing skills and life experiences are valuable assets in the retirement income landscape.
• Adapt to the 2025 Landscape: Embrace online platforms and evolving industries to find relevant and profitable opportunities.

1. Reimagine Part-Time Work in Retirement

Who says retirement means no work at all? Part-time jobs are a classic way to earn extra income, and in 2025, the options are more diverse than ever.

• What it is: Taking on a job that requires fewer hours per week, offering a balance between work and leisure.
• Earning Potential: The median hourly wage in the United States was $28.91 in May 2023. Part-time earnings will depend on the hours you work and the specific job. Working just 10-15 hours a week at this rate could add a significant amount to your monthly income.
• Realistic Income: If you work 15 hours a week at $15 per hour, you could earn around $900 per month before taxes. Some part-time roles, especially those requiring specialized skills, can pay significantly more.
• Fees: Generally, there are no fees associated with getting a part-time job.
• Payment Systems: Typically, you’ll be paid via direct deposit or check, just like in a full-time job.
• Requirements: Requirements vary widely depending on the job. Some may require specific skills or experience, while others offer on-the-job training. Many part-time roles are entry-level and open to retirees looking for flexible work.

Examples of Part-Time Jobs for Retirees:

• Retail: Many retail stores value the experience and customer service skills of retirees. Roles can include sales associates, cashiers, or customer service representatives.
• Customer Service: With the rise of remote work, many companies hire part-time customer service representatives. This can be done from the comfort of your home.
• Driving Services: Driving for ride-sharing or delivery services can be a flexible way to earn money on your own schedule.
• Tutoring/Teaching: If you have expertise in a particular subject, consider part-time tutoring or teaching, either online or in person.
• Administrative Assistance: Many small businesses and individuals need part-time administrative or virtual assistant help.

According to the U.S. Bureau of Labor Statistics, the leisure and hospitality sector and the health care and social assistance sector are projected to have strong job growth, offering numerous part-time opportunities.

2. Freelancing: Monetize Your Skills

Freelancing is booming, and retirement is the perfect time to turn your skills and passions into paid gigs.

• What it is: Offering your skills and services to clients on a contract basis, setting your own hours and rates.
• Earning Potential: Freelancing income is highly variable and depends on your skills, demand for your services, and how much you work. Skilled freelancers can earn significant hourly rates, sometimes exceeding $50-$100 per hour.
• Realistic Income: As a freelancer, you control your workload. Working 10 hours a week at $30 per hour could bring in $1200 per month. If you dedicate more time or have highly sought-after skills, your income can be much higher.
• Fees: Freelance platforms often charge fees, usually a percentage of your earnings. These fees vary by platform but can range from 5% to 20%.
• Payment Systems: Freelancers are typically paid through online platforms like PayPal, direct deposit, or payment apps like Venmo or Zelle. Platforms like Upwork and Fiverr have integrated payment systems.
• Requirements: You’ll need a marketable skill (writing, editing, graphic design, web development, virtual assistance, etc.), a computer, internet access, and the ability to market yourself. Building a portfolio and client network takes time and effort.

Popular Freelance Platforms:

• Upwork: A large platform with diverse freelance categories.
• Fiverr: Known for project-based gigs, often starting at $5, but can go much higher.
• Freelancer: Another broad platform with various freelance jobs.

The freelance economy is growing rapidly. Studies show that a significant percentage of the U.S. workforce engages in freelance work, and this trend is expected to continue.

3. Consulting: Share Your Lifetime Expertise

Retirement doesn’t mean your years of experience are suddenly irrelevant. Consulting allows you to leverage your professional knowledge and get paid for it.

• What it is: Providing expert advice and guidance to businesses or individuals in your area of expertise.
• Earning Potential: Consultants often command high hourly or project-based rates due to their specialized knowledge. Rates can range from $50 to several hundred dollars per hour, depending on your field and experience.
• Realistic Income: Even a few consulting hours per week can generate substantial income. If you consult for 5 hours a week at $75 per hour, you could earn $1500 per month. Building a consulting practice takes time to establish clients.
• Fees: Generally, there are no fees associated with becoming a consultant, although you might invest in marketing materials or professional development.
• Payment Systems: Consultants typically invoice clients and receive payments via check, bank transfer, or online payment platforms.
• Requirements: Deep expertise in a specific industry or field, strong communication and problem-solving skills, and the ability to market your services. Networking and building a professional reputation are crucial.

Consulting Areas for Retirees:

• Business Consulting: Offer advice on strategy, operations, marketing, or finance based on your career experience.
• Industry-Specific Consulting: If you worked in a specialized field like engineering, healthcare, or education, your expertise is valuable.
• Life Coaching/Mentoring: Guide individuals in their personal or professional development, drawing on your life experience.
• Non-profit Consulting: Many non-profits need experienced consultants in areas like fundraising, management, or program development.

The demand for consultants is projected to grow as businesses seek specialized expertise without the cost of full-time employees.

4. Online Businesses: Tap into the Digital Market

The internet offers endless opportunities to start a business from your home, even in retirement.

• What it is: Creating and running a business online, selling products or services through a website or online platform.
• Earning Potential: The income potential of an online business is vast, ranging from a few hundred dollars a month to a full-time income or more. It depends heavily on your business model, effort, and market demand. Some online entrepreneurs build highly profitable businesses.
• Realistic Income: Building a successful online business takes time and effort. In the initial months, income may be modest. However, with consistent effort and a good strategy, you could realistically aim for a few hundred to a few thousand dollars per month within a year or two.

Fees

Starting an online business involves various potential fees:

• Website Hosting & Domain: Costs vary but can start from $10-$50 per month.
• Platform Fees: If selling on platforms like Etsy or Amazon, you’ll pay listing and transaction fees.
• Marketing & Advertising: Essential for attracting customers, costs vary widely.
• Software & Tools: You might need to pay for software for email marketing, social media management, etc.

Payment Systems: Online businesses typically use online payment processors like PayPal, Stripe, or Square to accept payments from customers.

Requirements: A business idea, a computer, internet access, basic tech skills, marketing knowledge, and entrepreneurial drive. You’ll need to be comfortable with online tools and platforms.

Online Business Ideas for Retirees:

• E-commerce Store: Sell crafts, vintage items, or curated products online through platforms like Etsy, Shopify, or Amazon.
• Blogging/Content Creation: Share your expertise or passion through a blog or YouTube channel and monetize through advertising, affiliate marketing, or selling digital products.

E-commerce sales continue to grow, representing a significant and expanding market for online businesses.

5. Turn Assets into Income: Renting & Sharing

Do you have underutilized assets? Renting them out can be a relatively passive way to generate retirement income.

• What it is: Making money by renting out things you own, such as property, vehicles, or equipment.
• Earning Potential: Rental income varies greatly depending on the asset, its location, and demand. Renting out a spare room or property can generate significant monthly income. Renting out vehicles or equipment may provide smaller but consistent earnings.
• Realistic Income: Renting out a spare room on Airbnb could potentially earn you a few hundred to over a thousand dollars per month in popular locations. Renting out a car might bring in a few hundred dollars per month, depending on usage.

Fees:

• Platform Fees: Rental platforms like Airbnb and Turo charge service fees, typically a percentage of the rental income.
• Maintenance & Upkeep: You’ll need to factor in costs for maintaining the asset you’re renting out.
• Insurance: You may need specific insurance coverage for rental activities.

Payment Systems: Rental platforms usually handle payments and payouts through their systems, typically via direct deposit. For direct rentals (e.g., renting to a long-term tenant), you’ll arrange payment methods with the renter.

Requirements: Owning a valuable asset that is in demand for rent. For property rentals, you’ll need to manage bookings, cleaning, and guest communication. For vehicle or equipment rentals, you’ll need to handle logistics and maintenance.

Assets You Can Rent Out:

• Spare Room or Property: Rent out a spare room, apartment, or vacation home on platforms like Airbnb or VRBO.
• Vehicles: Rent out your car when you’re not using it through platforms like Turo or Getaround.
• Parking Space: If you have an extra parking space in a desirable location, you can rent it out.
• Storage Space: Rent out unused garage or storage space.
• Equipment: Rent out tools, equipment, or recreational gear that you own but don’t use frequently.

Key Fact: The sharing economy, including rental platforms, is a significant and growing market, offering individuals opportunities to monetize underutilized assets.

6. Hobby to Hustle: Monetize Your Passions

Retirement is your time to enjoy hobbies. What if you could also make some money from them?

• What it is: Turning a hobby or passion into a source of income by selling creations, offering lessons, or providing related services.
• Earning Potential: Hobby income varies widely depending on the hobby, market demand, and your effort. Some hobbies, like crafting or photography, can generate supplemental income, while others might become more substantial businesses.
• Realistic Income: Hobby income is often initially modest, perhaps a few hundred dollars a month. However, if you build a following, develop unique offerings, and dedicate time to marketing, you could potentially grow it into a more significant income stream.

Fees: Fees depend on how you monetize your hobby:

• Craft Supplies/Materials: Costs for materials if you’re selling crafts.
• Platform Fees: If selling crafts online (e.g., Etsy) or teaching online classes, you’ll pay platform fees.
• Marketing/Promotion: Costs for promoting your hobby business.
• Classroom/Studio Rental: If teaching in-person classes, you might have rental costs.

Payment Systems: Payment methods depend on how you monetize your hobby. Selling crafts online might involve platforms like Etsy Payments. Teaching classes could involve direct payments or platform-based payments.

Requirements: A genuine passion or hobby, skills related to that hobby, and a willingness to market your creations or services. You’ll need to learn about pricing, marketing, and potentially online sales platforms.

Hobby Ideas to Monetize:

• Crafting/Art: Sell handmade jewelry, knitwear, paintings, pottery, etc., online or at craft fairs.
• Photography: Sell prints online, offer photography services for events or portraits, or sell stock photos.
• Writing/Blogging: Monetize a blog or writing skills through freelance writing, ebooks, or online content.
• Music/Performance: Offer music lessons, perform at local events, or create and sell music online.
• Gardening/Baking: Sell produce, baked goods, or homemade jams at farmers’ markets or online.

The market for handmade and unique goods is substantial, with platforms like Etsy connecting hobbyists with buyers worldwide.

7. Investing for Income: Make Your Money Work for You

If you have savings, investing for income can provide a stream of revenue during retirement.

• What it is: Strategically investing in assets that generate regular income, such as dividends or interest.
• Earning Potential: Investment income depends on the amount invested, the types of investments, and market conditions. Dividend yields and interest rates vary, but well-chosen investments can provide a steady income stream.
• Realistic Income: If you have $100,000 invested in dividend-paying stocks with an average dividend yield of 3%, you could generate $3,000 per year or $250 per month in passive income. Higher-yield investments may carry more risk.

Fees:

• Brokerage Fees: Trading stocks or ETFs may involve brokerage commissions, although many brokers now offer commission-free trading.
• Management Fees: If you invest in mutual funds or use a financial advisor, you’ll pay management fees.
• Expense Ratios: ETFs and mutual funds have expense ratios, which are annual fees charged to manage the fund.

Payment Systems: Investment income, such as dividends and interest, is typically paid directly into your brokerage account. You can then withdraw the funds as needed.

Investment Options for Income:

• Dividend-Paying Stocks: Invest in stocks of companies that regularly pay dividends to shareholders.
• Dividend ETFs (Exchange-Traded Funds): ETFs that hold a basket of dividend-paying stocks, offering diversification.
• Bonds: Bonds pay fixed interest payments over a set period.
• Real Estate Investment Trusts (REITs): REITs invest in real estate and distribute rental income to shareholders as dividends.
• High-Yield Savings Accounts/CDs: Offer higher interest rates than traditional savings accounts, though returns may be lower than riskier investments.

Historically, dividend-paying stocks have provided a significant portion of the stock market’s total return, making them a valuable component of income-focused portfolios.

FAQ

Will making money in retirement affect my Social Security benefits?

Yes, it could, depending on your age and how much you earn. If you are younger than your full retirement age for the entire year, there are limits on how much you can earn without it affecting your benefits. In 2025, for those under full retirement age, the earnings limit is around $22,320. If you earn more than this, Social Security may deduct $1 from your benefit for every $2 earned above the limit. In the year you reach full retirement age, a different rule applies, and the limit is higher. Once you reach full retirement age, there is no limit on how much you can earn without affecting your Social Security benefits.

Do I have to pay taxes on retirement income?

Yes, income earned in retirement is generally taxable, just like income earned before retirement. This includes income from part-time jobs, freelancing, online businesses, consulting, and rental income. Investment income, such as dividends and interest, is also taxable. You’ll need to report this income on your tax return and pay applicable income taxes. However, certain retirement account withdrawals may have different tax implications. Consult with a tax advisor for personalized advice.

How much money can I realistically make in retirement?

Realistically, the amount you can make in retirement varies greatly depending on the income strategies you pursue, your skills, time commitment, and market conditions. Some retirees earn a few hundred dollars a month to supplement their savings, while others build more substantial income streams that can replace a significant portion of their pre-retirement income. It’s important to set realistic expectations and understand that building income takes time and effort.

What are the best resources for finding part-time jobs for retirees?

Several online job boards and resources cater to retirees seeking part-time work:

• RetirementJobs.com: Specifically focuses on jobs for retirees and older workers.
• AARP Job Board: AARP offers a job board with opportunities for older adults.
• Indeed, LinkedIn, and other major job boards: Filter searches for part-time roles and specify location preferences.
• Local Senior Centers and Community Centers: Often have job boards or connections with local employers seeking part-time help.

Is it too late to start investing for income in retirement?

It’s never too late to start investing, even in retirement. While starting earlier is generally advantageous, investing for income in retirement can still provide a valuable income stream and help your savings last longer. Focus on lower-risk, income-generating investments that align with your risk tolerance and time horizon. Consult a financial advisor for personalized investment guidance.