Retirees Earn Up to $20,000 Per Month With One Side Hustle | Entrepreneur (2024)

FAQs

Are retirees earning 20000 a month with a side hustle? ›

Retirees Are Earning Up to $20,000 Per Month With One Fully Remote Side Hustle Quitting your day job doesn't mean you can't have an additional — and extremely lucrative — income stream. Retirement doesn't mean you have to stop earning altogether — in fact, it could allow you to make more money than ever before.

The average retirement income for U.S. adults 65 and older is $75,020. The median income for that age group is $50,290, according to data from the Census Bureau and Bureau of Labor Statistics. On a monthly basis, the average income for U.S. adults 65 and older is $6,252. The median monthly income is $4,191.

Financial planners often recommend replacing about 80% of your pre-retirement income to sustain the same lifestyle after you retire. This means that, if you earn $100,000 per year, you'd aim for at least $80,000 of income (in today's dollars) in retirement.

While $1,500 might not be enough for non-housing retirement expenses for many people, it doesn't mean it's impossible to stick to this or other amounts, such as if you're already retired and don't have the ability to increase your budget.

Apply the 4% Rule to Your $500,000

The “four percent rule”—a widely accepted financial rule of thumb—states that your savings should last through 30 years of retirement if you withdraw 4% of your nest egg during the first year of retirement and then take that amount each year thereafter, adjusted for inflation.

Social Security offers a monthly benefit check to many kinds of recipients. As of December 2023, the average check is $1,767.03, according to the Social Security Administration – but that amount can differ drastically depending on the type of recipient. In fact, retirees typically make more than the overall average.

According to the latest data from the United States Census Bureau, the median annual income for individuals aged 65 and older is $47,620, while the mean annual income is $75,254.

As a general rule of thumb, you will withdraw approximately 5% of your retirement income every year for expenses. The Balance breaks down the numbers below: Start with $240,000 and multiply it by 5%, which equals $12,000. Next, divide $12,000 by 12 months, which totals $1,000 per month.

The happiest retirees accumulate ample retirement savings so they can focus on enjoying their lives. Put another way, a house not built on a stable foundation will crumble.

How to make $10,000 a month in passive income? ›

With $800,000 in savings, you can probably cover $4,000 in monthly living costs. However, retirement accounts alone cannot safely sustain that spending for a 25- or 30-year retirement.

Passive income is your ticket to financial independence and early retirement. It's the income that flows in while you sleep, travel, or simply enjoy life. Unlike active income from a traditional job, passive income doesn't demand your constant time and effort.

With $6,000 a month, you have more money than the average retiree—Americans aged 65 and older generally spend roughly $4,000 a month—and therefore more options on where to live. Below, we list five spectacular places where you might consider spending your golden years.