Last Updated: December 30, 2025

Today’s retirees are beginning to look at retirement a bit differently. Due to a host of different factors, many retirees are taking on part-time work after exiting their full-time gig. And since every retirement looks a bit different, there are many cases where this is a great idea financially. Consider the case of someone who chooses to leave the workforce before they reach age 62 (the minimum age at which you can be eligible for Social Security). 

Whether you make this decision by choice or by force (maybe a medical issue has made continuing to work full time an impossibility), the Social Security Administration will log zero dollars in annual income for each year that you don’t have income when calculating your retirement benefits. 

Did you know: At least 70% of people plan to work part-time in retirement. By adding an extra $1,000 a month of part-time income for five years, you can increase your Retirement Score by 3 years.

Reach 35 years of Income with a Part-Time Job

In order to qualify for the maximum Social Security benefits, you’ll need 35 years of income. The annual dollar amounts you’ve made are averaged as part of the calculation used to determine the amount of your benefits. So it’s easy to see that you don’t want zeros as part of this equation: they drastically reduce your Social Security benefits. Working part-time is a way to assuage this type of hit to your benefits. 

Can You Work and Draw Social Security?

You can choose to pull in some income while you’re receiving Social Security benefits. But if you’re below full retirement age, you’ll be subject to an annual income limit. For 2026, that income limit is $24,480. Above this amount, for every $2 you earn, SSA will reduce your benefits by $1.¹ Head to our class “Working Part-time Impacts Your Benefits” to see how full retirement age plays a factor with your income.

Benefits of Working Part-time

Taking on a part-time job or a side hustle can help you earn additional income and offset the years where you weren’t making money. Let’s look at some of the benefits and drawbacks of continuing to work in retirement by taking a part-time job. 

Pros:

• Keeps your mind engaged and allows you to continue learning new things
• Provides a social outlet and prevents boredom
• Provides a supplemental income source
• May lead to new and exciting opportunities like team activities, new friendships and other income avenues
• May allow you to continue saving in a 401(k) (see our class “How to Lower Your Taxes in Retirement.”)

Cons:

• You’ll still be tethered to a schedule and will lack total freedom in retirement
• You likely still won’t be covered under a health care plan
• You may face much lower pay than you made while working full time
• You’ll have expenses associated with your job, like eating out, commuting, etc.

Part-time Income Ideas 

So you’ve decided to consider working part time during retirement. Or at least you’d like to open the door to some new income streams. The first several years immediately following retirement are a great time to do this, provided you’re still active and healthy enough. We’ve compiled a list below that’s full of ideas you can consider. When reading through this list, think about things like how many hours you’re hoping to work, whether you’re okay being on your feet for a long time or if you’d prefer sitting down, and what type of environment you feel most comfortable in.

Here are some unique and fun ideas:

• Professional consulting
• Doordash or similar food-delivery service
• Renting out part of your home or listing it on AirBnB
• Listing your pool on Swimply
• Ushering at your local opera/theatre
• Working at a baseball game, festival, or concert
• Running for office in your local government
• Starting your own Etsy or e-commerce business
• Creating your own online course 

SOURCES

1. “Cost-of-Living Adjustment (COLA) Information for 2025.” SSA.gov, Social Security Administration, https://www.ssa.gov/cola/. Accessed 16 December 2025.