New research from Western & Southern Financial Group reveals that 41% of unretired Americans expect a side hustle to be their primary income source in retirement. Not Social Security, not a 401(k), but whatever they hustle on nights and weekends today.
This shift represents more than a trend. It is a fundamental reimagining of American retirement, driven by inflation, rising costs, and a growing belief that traditional retirement might be slipping out of reach.
The new retirement math
Americans now expect to retire at 70, six years later than their ideal retirement age of 64. According to the Western & Southern survey of 1,002 unretired Americans, people believe they need $1.14 million to retire comfortably.
Gen Z expects to need $1.25 million, while millennials estimate $1.22 million. Baby boomers, perhaps more realistic or simply resigned, believe they can manage with $760,000.
These figures help explain why one in four Americans believes they will never retire at all. When the target keeps moving, alternatives become more appealing.
Side hustles cross generational lines
Forget the stereotype of the twentysomething juggling three jobs. The survey found that side hustles ranked among the top three expected retirement income sources across every generation:
- Gen Z: 39%
- Millennials: 41%
- Gen X: 42%
- Baby boomers: 38%
This is not just about young people being entrepreneurial. It reflects a broader realization that multiple income streams may be necessary. Nearly two-thirds (65%) plan to rely on more than one income source in retirement, with Gen X (71%) and baby boomers (68%) leading the trend.
What this means for your financial future
Nearly half of unretired Americans (49%) lack confidence that they will have enough savings to maintain their lifestyle and cover essential expenses in retirement. Gen X feels especially vulnerable, with 52% expressing doubts about their retirement outlook.
This widespread uncertainty is changing how people think about retirement. Instead of stopping work completely, many expect to keep earning income later in life, often through side hustles.
These efforts are becoming essential to financial planning — not just extra income, but a central strategy for making retirement feasible.
For those with $100,000 or more in assets, SmartAsset can help connect you with a financial advisor to explore retirement strategies tailored to your situation.
The escape route some are considering
The survey indicates that over a third of Americans (34%) would consider retiring abroad to stretch their dollars. Another 36% are undecided, and Gen Z is the most open to this idea at 40%.
Living overseas may lower costs, but it also brings challenges such as healthcare access and distance from loved ones. For some, though, it is becoming a serious consideration rather than a far-off dream.
How employers can support this shift
The survey focused on individual strategies, but commentary from Western & Southern Financial Group president Mark Caner, as reported by BenefitsPro, highlights how employers can help.
He notes that benefits like automatic 401(k) enrollment with matching, phased retirement options, and access to planning tools can make a real difference.
These efforts are not just helpful for workers. When employees feel more financially secure, companies benefit through reduced stress, higher productivity, and stronger retention. Supporting long-term financial wellness can lead to a more engaged and loyal workforce.
Embracing the new reality
The old retirement model gives way to a more flexible, hybrid approach. Many Americans will likely combine savings, Social Security, and continued work, often through side hustles, to create sustainable income.
This means financial planning must also evolve. Building a large nest egg may no longer be enough. Maintaining marketable skills and developing durable income sources are essential to a retirement plan.
Whether this represents innovation or necessity is up for debate. But one thing is sure. The retirement experience is changing. The question now is not if you will work in retirement, but how that work fits into your future.
Add a Comment