Genius Ways To Make Money After Retirement (That Aren't Social Security)

Planning for retirement can be a complicated financial and personal decision. From where to move to what age you should plan to claim Social Security, figuring out what your specific retirement might look like can be tricky. However, while it can already be difficult enough to decide on the social and emotional elements of retirement, determining your financial plan for retirement can be even worse. This isn't helped by the fact that the amount of money Americans think they need to retire comfortably goes up every year.

If you're part of the majority of Americans who worry about running out of money during retirement, you might have found yourself wondering about ways to make additional money during retirement. While Social Security can certainly be a significant part of a retiree's overall income, it was never designed to be the entirety of an American's retirement fund, so having other avenues of income can be a smart plan. (Plus, with Social Security's trust funds set to be depleted in 2035, it might not be the smartest financial decision to rely entirely on that program in the near future.)

Now, for those who might be thinking that continuing to work isn't necessarily how you planned to spend your retirement years, it's important to realize that there are a LOT of creative ways to earn additional income that don't require clocking in every day. Let's dive into some of the best ways to earn retirement income.

Perhaps the most important concept to know when seeking out extra income in retirement is the idea of passive income. Passive income allows you to earn additional money with minimal (or even no) work on your end. Almost all of the best ways to earn income in retirement would qualify as passive income.

For starters, rental income can be a significant way to earn additional income without the nine-to-five schedule. This idea in particular, however, can require several years of advanced preparation to pull off successfully. Plus, it's important to realize that this idea does involve having the capital to purchase and manage a property. Other passive income ideas include long-term financial options like certificates of deposit, dividend stocks, and even bonds, which can provide more steady long-term payouts during retirement. Similarly, annuities, which tend to be more complicated and have varying available options, can also provide steady monthly income.

For those looking to be more actively involved in the process of earning their money, there are many available side gigs that could be worth considering (but we do warn against certain myths and lies associated with side hustles). Similarly, starting a small business or even turning a hobby into a profitable side business can allow you to not only make money but also stay busy and social during your golden years. The key thing to remember is to make your income avenues work for you and the lifestyle you want.

While earning additional income can be a great way to offset your other retirement benefits, there are some specific Social Security rules to keep in mind. Depending on the age you choose to retire and receive Social Security benefits, you could face benefits deductions due to Social Security's imposed income limitations while accepting benefits. For those who are under full retirement age — which is 66 or 67 depending on the year you were born — your income limit while receiving Social Security benefits in 2024 was $22,320 (and will be $23,400 in 2025). If you end up earning more than that amount, then you will face a $1 deduction to your benefits amount for every $2 you earn over the annual limit.

During the year in which you turn your full retirement age, you have slightly different deductions and income limits. For 2024, the earnings limit for those who turn full retirement age was $59,520, with a $1 deduction for every $3 worth of earnings made over that limit. In 2025, this income threshold for those turning full retirement age is set to increase to $62,160. Note that this is specifically for the year you turn your full retirement age, and that Social Security will only count earnings up to the month before your birthday, as opposed to the earnings for the entire year. For example, if you turn 66 in July, Social Security will only count your earnings from January to June.

Meanwhile, those who have reached their full retirement age face no reduction to their benefits, regardless of how much income they earn. This can be another significant factor to consider when deciding what age to claim your Social Security benefits (plus your age can affect your average Social Security benefit amount).