Most retirees who rely primarily on Social Security report falling short of a comfortable retirement, but a simple shift changes that dramatically. According to a Gallup survey, just 60% of retirees living mainly on Social Security say they retired comfortably. Among those with one additional income source, that number climbs to 78%.
The gap between those two groups isn’t luck or a higher salary, but rather a deliberate decision to build income from more than one place. If you’re still working, you have time to make that same decision. Here are the income streams worth building and the strategies that make each one work.
Retirement accounts
For most workers, a 401(k) or IRA is the most accessible path to retirement income beyond Social Security. The priorities are straightforward: contribute consistently, capture your full employer match, and increase your rate when your income rises. If you’re 50 or older, catch-up contributions allow an extra $8,000 per year in 2026.
On the withdrawal side, the 4% rule offers useful context: $500,000 generates $20,000 per year; $1 million generates $40,000. Pair either figure with Social Security, and the income picture could change substantially.
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Pension income
Defined-benefit pensions have become less common in the private sector, but they remain widespread in government, education, health care, and some unionized industries. If you have a pension, it functions as a guaranteed monthly income stream for life. This is exactly the kind of reliable secondary income source that the Gallup data suggests is strongly correlated with comfortable retirement outcomes.
If you have a pension, know your projected benefit, understand your survivor benefit options, and factor it into your broader retirement income picture before making decisions about Social Security timing. A pension that covers $1,500 to $2,000 per month changes the math on when you need Social Security to kick in.
Part-time or flexible work in retirement
A part-time retirement job doesn’t mean failing to fully retire. For many people, a few flexible hours a week provides income and structure that enhances retirement rather than delaying it.
The financial impact is real. Earning $10,000 to $15,000 annually reduces your portfolio withdrawal rate, extends your savings, and — if you delay Social Security to 70 in the meantime — could significantly increase your lifetime benefit. Consulting, tutoring, seasonal work, and freelance projects are all common paths that deliver income without full-time commitment.
Rental and real estate income
Rental income provides consistent cash flow that isn’t tied to stock market performance, which is a useful diversification benefit. Homeowners with extra space have a low-barrier entry point, and REITs offer real estate income exposure through a standard brokerage account without the landlord responsibilities.
The main risk is liquidity: real estate isn’t easily converted to cash quickly, and direct ownership comes with management obligations. Both are worth planning around rather than reasons to avoid it altogether.
Dividend income from investments
A portfolio that includes dividend-paying stocks or dividend-focused ETFs can generate regular income without requiring you to sell assets. This could be valuable in retirement because it could allow you to draw income while keeping your principal invested and growing.
Dividend income also tends to grow over time as companies increase their payouts, providing a degree of inflation protection that fixed income sources cannot match.
Annuities
For retirees who want the certainty of a guaranteed monthly check beyond Social Security, annuities — particularly simple income annuities — could serve a legitimate role. In exchange for a lump-sum payment, an income annuity provides a fixed monthly amount for life, functioning similarly to a pension.
They are not the right tool for everyone, and the fees and terms vary widely, but for people whose primary concern is outliving their money, they could be a worthwhile option.
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Bottom line
The Gallup data is clear: retirees with multiple income sources are far more likely to enjoy a stress-free retirement than those who rely on Social Security alone. You don’t need all six streams covered here. You need enough of them, built consistently, to avoid depending entirely on any single one.
One practical detail worth noting is that the order in which you draw from your income sources in retirement matters as much as having them. Withdrawing from taxable accounts first, then tax-deferred accounts, then Roth accounts last is a widely used sequencing strategy that could extend your money and reduce your lifetime tax burden significantly.
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Author Details
Sarah Brooks
Sarah Brooks specializes in money management, investing, income strategies, and building wealth. Her work can be found on SoFi, LendingTree, and GOBankingRates.
