Planning to retire? Consider starting a side hustle to supplement your income. Inflation has made retirement more expensive, and unexpected expenses can strain your budget. A side gig can provide financial stability and a sense of purpose in retirement, while also helping you stay connected and socially engaged.

Retirement savings invested in the stock market can be volatile. A side hustle can provide a predictable income stream to balance out market fluctuations. Starting a side gig can also help ease the transition into retirement, keeping you connected to the workaday world and allowing you to explore new interests.

Retirees can leverage their career skills in a side gig, whether through consulting, tutoring, or selling handmade goods online. Side gigs offer a variety of opportunities to stay active while earning extra cash. However, it’s important to remember that side gig income is taxable, so be prepared to report it on your taxes. If you make enough money, be mindful of potentially moving into a higher tax bracket, advises Huang. Save accordingly. However, Weiss notes that your overall tax rate may still be lower in retirement, even with Social Security. Earning income allows contributions to an IRA, which can grow tax-free.

Source: GOBankingRates.com, Caitlyn Moorhead contributed to reporting.

Read more at Yahoo Finance: 7 Reasons Why You Should Start a Side Gig If You’re Retiring This Year