Three Signs Boomers Need a Side Hustle In Retirement
Written by
Gina Hagler
Edited by
Rebekah Evans
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
If you’re a boomer and you find yourself a little short on cash as you approach retirement, you’re not alone. Many of those born between 1946 and 1964 are in a similar situation, particularly the younger boomers (1959 to 1965), according to CBS News.
New data from the Alliance for Lifetime Income (ALI) indicates a disparity within what is considered the wealthiest generation, where the level of financial preparation that applies to boomers who are white, male or college graduates does not apply to those who are Black or Hispanic, female or not college-educated. Complementary research has also found that roughly a quarter of older workers (age 59+) have no retirement savings. The boomer generation was the last to have wide access to workplace pension plans, meaning many older boomers didn’t find it necessary to save as much as younger generations, as reported by Yahoo Finance.
If you’re a boomer with concerns about your finances, here are three signs you need a side hustle in retirement.
Also here are six side hustles that can fast-track your retirement.
1. Income Threshold
According to the AARP, peak boomers — those turning 65 between 2024 and 2030 — with less than $250,000 in retirement assets will need to rely on Social Security for a portion of their income. Among peak boomers, 52.5% fall into that category, while 14.6% of peak boomers have under $500,000 in assets and will experience some degree of financial strain. If you are in either category, especially the first, a side hustle can provide supplemental income.Â
2. Taking Social Security Early
According to Yahoo Finance, if you delay taking Social Security until age 70, you’re guaranteed a 32% increase to your monthly benefit, based on the 8% yearly increase after age 66 or 67, depending on your birth year. Because life expectancy is increasing, maximizing your Social Security benefit will help you in the long run. If you were thinking of taking Social Security early, you begin a side hustle instead.Â
3. Maximum Contributions
If you didn’t make the maximum yearly contributions to your retirement plan, your nest egg is smaller than it could’ve been, as explained by Yahoo Finance. Given that you won’t be able to withdraw as much during retirement as you might have, a side hustle can help to make up for some of the lost income.
More From GOBankingRates
