3 Ways to Supplement Your Social Security Income Before 2026 Ends

Each month, Social Security pays out benefits to tens of millions of Americans, the vast majority of whom are retirees. While Social Security is a critical program that provides a key source of income, it’s rarely a retiree’s sole source of income.

In June, the average monthly benefit for retirees was roughly $2,084 or just over $25,000 annually. That’s likely not enough to support most people’s lifestyles.

While many retirees have built up at least some savings throughout their lives, it’s still common for them to continue finding ways to boost their income even after claiming Social Security. Here are three ways to supplement your Social Security income before 2026 ends.

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1. Buy dividend stocks

Investing in dividend stocks can be a good way to generate reliable annual passive income. There may also be an opportunity for appreciation. Dividend stocks can help your money keep pace with inflation and also put some money in your pocket each year.

However, it’s important to understand that not all dividend stocks are the same. Those with high yields look appealing but may actually signal risk to the company or appear high after a stock has been crushed by an underlying issue.

The key to choosing good dividend stocks is finding companies that generate enough earnings and free cash flow to cover the annual dividend and also raise it in future years. Investing in companies with strong track records is another good idea.

A few stocks that come to mind are Coca-Cola and Realty Income, which have strong track records and business models. Investors can also search through The Motley Fool’s list of Dividend Kings for ideas. A Dividend King is a publicly traded company that has paid and raised its annual dividend for at least 50 years.

If purchasing individual stocks still feels too risky, consider investing in the Schwab U.S. Dividend Equity ETF, which tracks an index of stocks known for the quality and sustainability of their dividends. The exchange-traded fund has a trailing yield of 3.3% and is up about 32% over the past five years.

Sure, the broader stock market outperformed, but the Schwab U.S. Dividend Equity ETF is less volatile and pays that steady annual income.

2. Get a part-time job

A part-time job is also another way to supplement your Social Security income. While some people retire to stop working, the transition for those who have worked for decades can be difficult.

Getting a part-time job can help make this transition easier and also bring in income. There are opportunities to work for local businesses in the community if a retiree prefers to work in person, online work opportunities for those who want to stay remote, or opportunities in the gig economy through jobs like driving for ride-share services, which offer flexible hours.

Some people find that working 10-20 hours per week is the perfect combination of earning some extra money while also keeping one busy or transitioning to a life with no work.

3. Purchase a rental property

This likely isn’t for everyone, and be sure to speak to a financial advisor before deciding to go down this path, but purchasing a rental property could be a smart move if you can afford it with your savings.

For one, the right property can generate at least a little bit of money each month, while also using a renter to help pay down the mortgage. The value of the property should also appreciate if you have at least five or 10 years to hold.

Retirees may also have more time to manage a rental if they aren’t working full-time. It can also be a great way to purchase a vacation property to use for part of the year and rent out the rest.

Owning rental properties may come with tax advantages, and if you don’t want to manage them personally, you can often find a property management group to do the work for you, although they’ll take a cut of the rental income.

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.