In a time when costs of living are high and inflation is creeping up again, baby boomers heading into retirement or already in it in 2026 will be looking for ways to stretch their income.
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Barring staying in the work force, what are some hacks that boomers can use to boost their income before next year? Experts offer some tips.
Leverage Tax Advantaged Accounts
To keep more money in their pockets without actually taking on more work, one tax move that boomers can consider is leveraging tax-advantaged retirement accounts such as 401(k) plans or IRAs, according to Aaron Razon, personal finance expert at Coupon Snake.
“This helps boomers put more money back in their pockets because these contributions reduce their tax liability by lowering their taxable income,” Razon said.
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Delay Social Security Benefits
Boomers can also strategically claim their Social Security to boost their monthly income, Razon added.
“One strategy that could work is delaying benefits until the age of 70. This will maximize their monthly payout. Another strategy is claiming spousal benefits,” he noted.
In the latter case, if your spouse has a higher Social Security amount than your own, claiming a spousal benefit may increase your own.
Consider a Side Hustle
While many in retirement prefer to work less, sometimes a side gig can not only add extra income before retirement, but parlay into convenient part-time work after retirement, Razon pointed out.
“Boomers can use their career experience for extra income by playing to their strengths… exploring side hustle opportunities that align with their life’s work and professional experience such as consulting, teaching freelance writing and public speaking,” he said.
Side hustles like pet sitting and house sitting are low effort and potentially lucrative without a demanding schedule, the expert added.
“[These side hustles can] bring them in contact with people and animals in ways that supplies their needs for companionship and gives them a sense of purpose,” Razon said.
Make Small Lifestyle Changes
Boosting income is sometimes as simple as reassessing daily spending habits, focusing on quality of life over expensive lifestyles.
“By prioritizing those things that are truly valuable and meaningful, boomers would be able to free up cash without drastically cutting quality of life,” Razon said.
Get a Roommate
If you’ve got a house with a spare room and don’t mind living with someone who is neither family nor friend, Matt Hutchinson, spokesperson for roommate site SpareRoom, suggested taking on a roommate.
“If you have a room to spare, taking on a roommate later in life is an increasingly popular way to boost income,” according to Hutchinson. “In the U.S., 48% more [people] over 65 advertised rooms for rent in their homes in 2024 than in 2023.”
He continued, “It’s not the financial benefits for those who haven’t saved enough to retire comfortably, there’s also the companionship and security of having someone you trust around the home.”
While there is some work involved in the initial set up, such as creating a written agreement and establishing house rules around guests, pets, use of facilities and more, the spokesperson said, “the financial reward is well worth your time.”
He recommended taking a look at other room listings in your area or average rents to see how much you could charge for your room.
“Then, take the time to choose someone you think you’ll get along well with,” Hutchinson said. “Be really clear about your living arrangements, your schedule and your expectations when advertising a room.”
House Hacking
Another strategy if you own a property with multiple units, such as a duplex, a home with a self-contained upstairs and downstairs unit, or an apartment complex, is to rent out one of these units while living in one. This enables you to not only bring in extra income, but write off additional expenses related to the rental.
For baby boomers, boosting income before or during retirement doesn’t always mean taking on another full-time job. With smart financial moves, creative use of existing assets and a willingness to adapt, retirees can stretch their income and maintain the lifestyle they’ve worked so hard to achieve.
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This article originally appeared on GOBankingRates.com: 6 Hacks Boomers Can Use To Boost Their Income Before 2026
