What is the average age people start a post-retirement side hustle?

While there's no definitive "average" age, many individuals begin exploring post-retirement side hustles in their late 60s or early 70s, after transitioning out of their primary careers. This allows them to maintain flexibility while supplementing income and staying engaged.

How much can I earn from a post-retirement side hustle?

The income from a post-retirement side hustle varies widely depending on the type of work, hours committed, skill level, and demand. Some retirees earn a few hundred dollars a month, while others with specialized skills in consulting or high-demand niches can earn several thousand dollars monthly.

Will a side hustle affect my Medicare benefits?

Generally, earning income from a side hustle does not directly affect your Medicare Part A, B, or D benefits. However, if your modified adjusted gross income (MAGI) exceeds certain thresholds (e.g., $103,000 for individuals in 2026), you may be subject to the Income-Related Monthly Adjustment Amount (IRMAA) for Medicare Part B and Part D premiums, meaning you'll pay higher premiums.

What are the best low-stress side hustles for retirees?

Low-stress side hustles often involve leveraging existing skills or hobbies, offering flexible hours, and avoiding high-pressure environments. Examples include online tutoring, pet sitting, freelance writing/editing, selling handmade crafts, or light consulting in a familiar field.

Do I need a business license for a small side hustle in retirement?

Whether you need a business license depends on your location and the nature of your side hustle. Many small, casual side hustles don't require one, but if you're operating as a formal business, selling goods, or providing professional services, you may need to register with your city or state. Always check local regulations.

How do I report side hustle income on my taxes?

If your net earnings from self-employment are $400 or more in a year, you must report them to the IRS. You'll typically use Schedule C (Form 1040) to report income and expenses, and Schedule SE (Form 1040) to calculate self-employment taxes. You may also need to make quarterly estimated tax payments.

Can I contribute to a retirement account with side hustle income?

Yes, if your side hustle generates earned income, you can often contribute to certain retirement accounts. You can contribute to a Traditional IRA or Roth IRA if you meet income limits. If your side hustle is a self-owned business, you can also establish a Solo 401(k) or SEP IRA, which allows for much higher contribution limits based on your self-employment income.

Post-Retirement Side Hustle: Golden Grind Guide | One…