You’ve worked hard to save money and prepare for the future so that you can enjoy a stress-free retirement. You’ve done your time and are ready enjoy what comes next. But maybe you don’t have quite enough to support your ideal retirement lifestyle, or maybe you want to focus on relaxing while staying energized and engaged without a full-time commitment.
Enter the side gig. Beyond the obvious financial benefits, side gigs can also help you stay involved in your community and keep your mind sharp. They don’t have to be a last resort—in fact, they can be an intentional part of your retirement plan. The following are reasons why you might want a side gig in retirement.
Earning Additional Income
Whether you envision your retirement years relaxing at home, gathering with family, or traveling the world, realistically will you have the funds to sustain your dreams? If you’re not sure, then you’re not alone. A recent D.A. Davidson survey1 shows that two in five retired Americans (41%) feel like they currently cannot support their ideal retirement. A side gig can help to supplement your income or provide extra funds for discretionary or emergency expenses.
The same survey shows that while 92 percent of retired Americans say they do not have a side gig to supplement their retirement savings, 60 percent wish they did. In an ever-changing economic landscape, achieving financial security is more important than ever. But the benefits go beyond just the financial ones.
Supporting Mental Health
As you get older, keeping your mind and body active is key, and picking up a side gig can be a great way to do that. Research shows that memory and other brain functions thrive on regular use, so even after retiring, it’s important to find ways to challenge and engage your brain. You can read more about it in Keep Your Brain from Retiring When You Do.
From the D.A. Davidson survey, more than half (55 percent) of those with a retirement side gig said that they took it on in order to participate in an activity that they find mentally or socially stimulating. Additionally, 93 percent said they enjoy their job.
“The definition of—and classic timeline for—retirement is changing,” said Andrew Crowell, Financial Advisor and Vice Chairman of Wealth Management at D.A. Davidson. “While many retirees might picture never working again, a side gig in retirement can be a fun and meaningful way to stay engaged in the community while supporting a more ideal retirement overall.”
Side gigs are also good for maintaining strong social connections and a sense of purpose that may have been left behind upon retirement. Having commitments outside of the house is crucial to keep the mind sharp and energized.
Common side gigs Crowell has seen among his clientele include working a part-time job, selling a craft that was created as a hobby, and freelance writing.
Looking to the Future
Of Americans that are 50 and older and have not yet retired, 63 percent have considered pursuing a side gig once they do.2
“Throughout our careers and especially as we near retirement, it’s important to constantly evaluate what we want our retirement to look like, as this can—and probably will—change over time,” Crowell said. “Some may find it helpful to stick to a schedule or have an extrinsically motivated goal to work toward, both of which side gigs can support, while bringing in some additional income.”
Although it may not be for everyone, engaging in a side gig could be worth considering as a smart addition to your retirement plan.
1, 2 Nearly Two-Thirds of Retired Americans Wish They Had a Side Gig to Support Their Ideal Retirement Lifestyle
This material is being provided for educational and informational purposes only. D.A. Davidson & Co. is a registered broker-dealer and registered investment adviser that does not provide tax or legal advice. Information contained herein has been obtained by sources we consider reliable but is not guaranteed and we are not soliciting any action based upon it. Any opinions expressed are based on our interpretation of the data available to us at the time of the original article. These opinions are subject to change at any time without notice. Copyright D.A. Davidson & Co., 2025. All rights reserved. Member FINRA and SIPC.