Retirement doesn’t mean you have to live on a tight budget. In fact, with a few practical adjustments, you could boost your monthly income by around $740 or more. Whether you’re already retired or planning ahead, there are several smart ways to stretch your income without overworking or draining your savings.
From delaying Social Security to turning your hobbies into income, this guide breaks down the most effective options retirees can use to add hundreds—sometimes thousands—each month.
Unlock
Here’s a quick overview of how retirees can unlock extra income:
| Detail | Information |
|---|---|
| Monthly Income Boost | Up to $740/month by delaying Social Security |
| Alternative Options | Renting space, part-time work, investments, annuities |
| Top Platforms | Airbnb, Fiverr, Upwork, Etsy, SpareRoom |
| Best For | Retirees aged 62–70 or with hobbies, assets, or savings |
| Official Info | ssa.gov/benefits/retirement |
Delay
The most straightforward way to earn more each month? Delay Social Security. While you can start taking benefits at age 62, they’ll be reduced for life. But if you hold off until 70, the monthly check gets much larger.
Here’s how it adds up:
| Age | Monthly Benefit | Difference |
|---|---|---|
| 62 | $1,298 | – |
| 70 | $2,038 | +$740 |
That’s an $8,880 yearly difference just for waiting. The Social Security Administration increases your benefit by about 8% annually after full retirement age (67), making this one of the most reliable ways to increase retirement income.
Rent
Got an extra room or basement? Put it to work. Retirees across the country are earning consistent income by renting space on:
- Airbnb (short-term)
- SpareRoom (long-term roommates)
Depending on your location, the earnings can be solid:
| Area Type | Average Monthly Earnings |
|---|---|
| Urban | $1,200–$1,600 |
| Suburban | $900–$1,100 |
Just make sure to check local laws or homeowners’ association (HOA) rules before listing.
Freelance
If you’re skilled in writing, tutoring, coaching, or consulting, freelancing part-time can be both rewarding and profitable.
Popular platforms include:
- Upwork
- Fiverr
- Tutor.com
Even working 5–10 hours per week can generate $500–$1,000 per month depending on your niche and experience level.
Invest
If you have a retirement nest egg or some savings, it might be time to look into passive income investments. Consider:
- Dividend stocks
- Bonds
- Real Estate Investment Trusts (REITs)
With a diversified portfolio, retirees can aim for 4%–8% annual returns, according to Investopedia. The key is to balance risk with stability—so work closely with a financial advisor to stay on track.
Hobby
Have a hobby like woodworking, crocheting, or baking? Turn that passion into a small retirement business.
Top platforms for selling homemade goods include:
- Etsy
- Facebook Marketplace
- Local craft fairs or farmer’s markets
Depending on your time and product demand, even hobby-based side gigs can bring in $300–$1,000+ monthly.
Annuity
An annuity offers another way to create predictable income. You pay an upfront sum to an insurance company in exchange for regular monthly payments.
Types of annuities include:
- Immediate annuities: Start paying you now
- Deferred annuities: Start later but pay more
These can provide peace of mind for those concerned about outliving their savings. But be sure to compare options with a trusted financial advisor.
Consider
Before diving into a new income stream, here are a few things to think about:
Taxes
Extra income could bump you into a higher tax bracket. You might also owe taxes on up to 85% of your Social Security benefits depending on your total income.
Medicare
Higher earnings can increase your Medicare Part B premiums through income-related adjustments.
Work Limits
If you’re collecting Social Security before full retirement age and still working, your benefits may be reduced. In 2025, for every $2 you earn over $22,320, you’ll lose $1 in benefits.
You don’t need a lottery win to enjoy retirement—just a little strategy and initiative. Whether it’s renting out space, freelancing, or delaying benefits, each small step adds up. That $740 monthly boost is real and within reach.
FAQs
How can delaying Social Security help?
It can increase your monthly benefit by up to $740.
What’s the best platform to rent a room?
Airbnb is great for short stays, SpareRoom for long-term.
How much can freelancing add monthly?
5–10 hours weekly can bring in $500–$1,000 or more.
Are annuities safe for retirees?
Yes, if chosen wisely with help from a financial advisor.
Will extra income affect my Medicare?
Yes, it may increase your Medicare Part B premiums.
