Personal finance problems plague Americans at every age, but there are plenty of solutions to earn extra money, particularly if you have skills that could lead to additional income and the energy and time to make it work.
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We know that the freelance economy is only growing with participation from Gen X at 27% and baby boomers at 9%, according to 2023 Statista data. The website also said it’s estimated that by 2027, 50.9% of the U.S workforce will be part of the gig economy. With so many clamoring for a piece of the gig economy pie, there’s no reason middle age and senior populations should sit on the sidelines.
So, is starting a side gig the key to fixing the money issues for these two generations? GOBankingRates spoke with a financial expert and consulted research to find out.
Why Do Boomers and Gen X Want Side Gigs?
Wondering the reasons older generations are running side hustles in addition to full-time jobs or in lieu of them? Most want the extra money (89%), but a desire for flexibility (87%) wasn’t far behind, according to a 2023 AARP survey.
This demographic is also more likely to have higher levels of debt than their parents might have had around the same age. A survey by U.S. Government of Accountability found that older Americans had significantly more debt in 2016 than in 1989.
Gen X households are three times more likely to report decreased emergency savings (39%) than increased savings (13%) since the start of the year, according to one 2023. Similarly, baby boomers are two times as likely to have reduced their emergency funds (36%) than grown them (15%) during the same period.
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The Gig Economy Is Thriving for People Over 50
Those are good reasons to add an extra job or two in 2025. But if you’re going to work more, why not ensure it’s in an area you’re skilled in or one you’d enjoy spending the time doing?
Workers over 55 make up around 3.8% of the global online gig workforce, according to estimates from 2023. That that might seem like a small number, it’s more than 6.2 million workers earning some money with an online side hustle.
“From 2018 to 2023, Gig Wage saw an increase from about 18% to nearly 25% of workers aged 50 and above participating on our platform,” said Craig J. Lewis, founder and CEO of fintech company Gig Wage. The company’s software is designed to help independent contractors get paid and make it easy for businesses to onboard gig workers.
“We believe the primary motivations driving this older demographic into the gig economy include the need for supplemental income, as well as a desire for flexible schedules to balance personal commitments, and the pursuit of passions or hobbies,” Lewis added.
How Much Money Are They Making?
How much are people over age 50 earning from side hustles?
The website MarketBeat conducted a survey that was published in August 2024 and shed light on how much retirees around the country are earning with side hustles. The survey of 3,000 retirees engaging in “golden gigs” found that that the retiree side hustle economy is a booming one. Gig workers in the five highest-earning states brought in between $460 and $825 per month.
On average, gig workers over age 50 earn an additional $12 to $15,000 annually on Gig Wage’s platform, Lewis reported.
“This is only on Gig Wage, so there’s a high likelihood these contractors have other earnings we don’t have visibility into, which plays a crucial role in boosting their retirement savings and reducing debt,” the CEO added. “Looking ahead given the trends across our customer base, we see the number of older adults participating in the gig economy continuing to expand.”
How To Start a Side Gig If You’re Over 50
Wondering how to get started with a side hustle if you’re over 50? Look to your existing professional skills:
- Perhaps you can create social media posts, Pinterest pins or infographics for small businesses.
- Offer pet sitting or housesitting services.
- You could also put administrative and organizational skills to use as a virtual assistants. Some virtual assistants earn over $100,000 a year!
- Sell your expertise with part-time consulting services. Charge hourly rates or offer packages and let other business owners in similar fields pick your brain.
The Bottom Line
Let’s be realistic, a side gig in 2025 won’t likely solve all your money problems, but it can help — particularly if you need to pay off debt and boost savings.
Running a successful side gig takes planning and managing your time effectively. Find a hustle that uses your skills and interests, for a fulfilling way to spend your time that can help reduce money stress.
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This article originally appeared on GOBankingRates.com: Is Starting a Side Gig the Solution To Fix Boomer and Gen X Money Woes in 2025?
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