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4 Non-Social Security Retirement Income Sources to Rely on in 2025

Your Social Security checks will go up next year. But even if you are a retiree, you may need money from other sources to make ends meet.

We are just days away from the announcement of the 2025 Social Security Cost-of-Living Adjustments (COLA). This is a big problem for seniors who have been battling high inflation over the past few years. But COLA is unlikely to be life-changing.

COLAs would account for about 2.5%, according to the latest projections from the nonpartisan Senior Citizens League. That would add $48 to the average monthly Social Security benefit of $1,920 as of August.

If you are a Social Security recipient and this is not enough to maintain your current standard of living, you may need to request some of these four alternative sources of retirement income:

Couple smiling while sitting at a table in the backyard.

Image source: Getty Images.

1. Personal savings

If you have personal savings, be sure to go there. It’s the most flexible source of retirement income because you withdraw as much as you need to cover any expenses you incur. But no matter how much money you have in your account, it’s still a finite resource.

To preserve your savings for as long as possible, you need the right retirement withdrawal strategy. This includes withdrawing only what you need and choosing the right account to withdraw from. Tax-deferred retirement accounts, such as traditional IRAs and 401(k)s, require you to pay taxes on withdrawals, but Roth withdrawals are generally tax-free in retirement. If you are over 73, you should also consider the effect of required minimum distributions.

You should also pay close attention to how you invest the money left in your account. It’s a good idea to keep your money in an easily accessible bank account or certificate of deposit.

But you also want to invest some of it in bonds and the stock market so it can continue to grow. Just err on the side of caution. At this stage, it is important to protect what you have saved.

2. Occupational income

If you are healthy enough to work, you can get a full-time or part-time job that will help you make a living. This job doesn’t have to be the same job you had before retirement. Today you can choose something that better suits your interests.

If your Social Security check and personal savings are enough to cover what you can’t afford, you don’t have to provide a lot of money. Depending on your needs and employer, you may be able to make ends meet by working just a few days a week. Working remotely is an option for people who want to travel in retirement.

Starting your own business can be risky. There are usually initial costs involved and if the business fails, you could be left in a worse position than you are now. Understand all the costs associated with starting a business and be prepared to take risks before starting your business.

3. Rental income

Retirees who own additional real estate can make some money by renting it out. This can be especially useful if you own the property outright. However, you are still responsible for maintenance.

If you’re looking for something predictable, a traditional long-term lease may be a good option. However, short-term vacation rentals are also an option. This is especially true if you live in a popular tourist destination.

Short-term rentals may require extra care as the unit must be inspected and cleaned with each guest change. However, you can hire someone to do this for you.

4. Government support

As a last resort, if you can’t cover your living expenses any other way, see if you qualify for other government assistance programs. This is usually managed at the state level, but you may want to check to see if your local community offers support as well.

Government programs exist to help with food, housing, utilities, and health care. There are criteria you must meet regarding your income, and you may need to recertify your income periodically to ensure you still qualify.

Prepare your budget

You may need a combination of these four sources of income to make a living. Once you know what your 2025 Social Security check will be, you can start planning for what’s not covered. Review this budget again in a month or two to see if it’s still working for you.

If not, you’ll need to reduce your spending or increase your income to find a balance that’s comfortable for you.

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