6 Ways to Generate Income in Retirement

Retirement should be the time to relax and enjoy the fruits of your labor. But have you ever wondered how you can ensure a steady income during these golden years? Join Claire Hollander as she delves into six strategies to continue to generate income in retirement when you decide to take a step back from full-time work.

Do you have enough money saved to enjoy a comfortable retirement?
Everything costs money, so you may need to look for ways to generate additional income after you retire. In this video, I’ll cover 6 ways to generate income in retirement, so that you can feel more prepared for the future.

Social Security

Social Security is an important part of many people’s retirement income plans. To qualify for Social Security benefits at your retirement age, you must have earned at least 40 Social Security credits through working. The amount you receive in Social Security depends on your age, earnings, and your work history. According to the Social Security Administration, the average monthly benefit payment in 2023 is $1,536.94.

Certificates of Deposit (CDs)

Certificates of Deposit (CDs) are another way to generate income in retirement. CDs are savings vehicles that allow you to earn interest on a lump sum for a fixed time, typically 3 to 18 months.

Don’t get CDs confused with the round, shiny discs that used to contain your favorite music.
When it comes to Certificates of Deposit, interest rates vary from institution to institution, so be sure to shop around for the best rate. CDs are FDIC-backed or NCUA- insured, so you can rest assured that your deposit is safe.

Dividend-Paying Stocks or Index Funds

Another way to generate income while you’re retired is through dividend-paying stocks or index funds. With index funds, your money is spread across many stocks instead of concentrated in one or two, but remember that there is still risk associated with these investments. However, with a longer holding time of 3 to 5 years, dividend index funds can also lead to compounding which helps your money grow faster.


When you invest in bonds, you lend your money to a borrower, and, in exchange, you earn interest on the money you lent. You can purchase bonds individually or in an exchange-traded fund (ETF) which allows you to purchase a range of diversified bonds. Bond returns can be limited but can potentially be safer than other investments, especially if if it’s a government backed bond – like treasury bonds and municipals.


Annuities are an agreement between you and an insurance company that will pay you a regular income now or in the future. There are three types of annuities: fixed, variable, and indexed, and it’s important to know the tax implications of annuities when purchasing one.

Part-Time Job or Side Hustle

Last but not least, if the money you earn from other investments isn’t enough, you can always find a part-time job or side hustle. In today’s gig economy, you can often turn hobbies into money makers and use apps to connect you to potential clients. You can be a ride share or food delivery driver, tutor… the possibilities are endless.

How many income streams will you have in retirement? Many ways exist to help you generate income during retirement—and the sooner you start planning, the better!