For many Americans today, retirement doesn’t mean stepping away from work; it means working differently. Recent studies indicate that approximately one in five retirees (19%) are currently working part-time, while roughly one in four pre-retirees (27%) plans to continue working in some capacity once they retire (1).
Why the shift? It’s not just about money. Nearly half of retirees say they work because they enjoy it or to stay active, while more than a third mention keeping their mind sharp as a top motivator. Of course, financial reasons still matter. Around 56% say extra income helps cushion their savings, manage inflation, or fund travel and hobbies (1).
In other words, for many retirees, retirement is no longer a stopping point; it’s often a time of reinvention.
The New Shape of Retirement Work
Today’s retirees are approaching work with a fresh perspective and purpose. Instead of full-time careers, many are embracing part-time, project-based, or flexible roles that align with their interests and lifestyle (1).
Some turn lifelong skills into consulting or freelance work. Others explore tutoring, customer service, creative projects, or small business ventures. These “side hustles” can offer more than financial benefits; they bring structure, social connection, and a renewed sense of identity that many find deeply fulfilling.
And while financial necessity plays a role for some, research suggests that only about a quarter of retirees work because they haven’t saved enough (1). For most, it’s about staying engaged, relevant, and mentally alert, the kind of fulfillment that doesn’t fit neatly into a 401(k) statement.
Balancing Purpose and Practicality
Still, it’s worth asking yourself: What am I hoping to gain from working in retirement? Whether it’s supplemental income, personal growth, or a sense of purpose, clarity matters.
Keep in mind that earning income could have tax or Social Security implications depending on your total earnings. That doesn’t mean a side hustle isn’t worth pursuing — it just means aligning your time, energy, and financial approach thoughtfully. Side hustles that tend to work best in retirement are often flexible, low-stress, and personally rewarding (1).
Your Next Step
So, is a side hustle right for you in retirement? If it adds joy, connection, or a little financial flexibility, it could be a great complement to your next chapter. For many, retirement isn’t about stepping back; it’s about thoughtfully choosing where to focus next.
If you’re exploring ways to stay active and purposeful while managing your finances thoughtfully, consider scheduling a complimentary meeting to discuss how part-time work or a side business could fit within your overall financial approach.
Source:
(1) “10 Stats About Retirees and Work.” FlexJobs, 2024, https://www.flexjobs.com/blog/post/10-stats-about-retirees-and-work.
This material is for informational purposes only and is not intended to provide specific financial, tax, or legal advice. Please consult a qualified tax professional or attorney regarding your individual circumstances. The examples provided are for illustrative purposes and do not represent specific recommendations or outcomes. Working in retirement and earning income may affect your Social Security benefits or tax situation. Consider consulting with appropriate professionals before making changes to your financial approach.
