The Side Hustle Retirement Fund Report

How Americans are rethinking retirement through side hustles, extra work, and technology.

Money has been tight for practically everyone as of late. Inflation continues to rise at 3%. The unemployment rate is the highest it has ever been since the pandemic, according to the U.S. Bureau of Labor Statistics (BLS). The cost of homeownership continues to rise, becoming an elusive goal for many people, particularly younger generations.

For many people, when the economy gets tough, they turn to a side hustle — doing freelance or gig work, picking up a second job, or even bussing tables at their local coffee shop. This isn’t an easy decision, but for many Americans, there is no choice in the current economic climate.

To find out how common this is, we surveyed 1,000 U.S. adults ages 21–60 who earn supplemental income beyond their primary job to evaluate their financial habits and long-term goals for financial security, and whether the economy affected their retirement plans. What we found: more Americans are turning to side hustles and changing up their working habits as a way to achieve financial security. No matter your age or your plans, a side hustle can mean the difference between long-term security and a prolonged career — even if you have to sacrifice your time and mental health in the process.

Key Takeaways

Nearly 2 in 5 (39%) say they took on a side hustle because their primary paycheck isn’t enough to plan for the future without falling behind on bills, while 1 in 4 cite rising living costs as a reason for taking on extra work.

Nearly 1 in 5 side hustlers (24%) still dipped into their savings or retirement funds in the past year, with three-quarters (74%) doing so just to cover everyday living costs like rent and food.

44% say at least half of their monthly savings comes from side-hustle income, with 38% contributing at least $100 a month, and nearly 1 in 5 (19%) saving more than $500 each month.

38% say using AI has helped them earn or save money, while 45% admit exaggerating their AI skills, and 1 in 5 say it led to more job opportunities.

46% of side hustlers say extra income funds at least 25% of their monthly retirement savings, while more than 1 in 4 (27%) see their side hustle as a long-term or primary retirement plan — nearly 1 in 5 are worried they’ll never be able to retire.

More than two-thirds (68%) aren’t spending their workday entirely focused on their primary job, with 23% simply “job-hugging”, and 1 in 10 polyworking.

Side Hustles Have Become a Core Retirement Strategy for Working Americans

When most people think about side hustles, they think about them as a way to make some extra cash. With it, they can use it to pay off debt, go to school, or even take a dream vacation. In reality, we found that people are now using side hustles as a systematic response to financial insecurity and to ensure they retire on time. Instead of using it to pay for “wants”, people are using it to pay for “needs”.

According to the survey, 44% have taken on extra work to feel more financially independent or secure. Of those who have taken on extra work, 25% cited rising living costs as a key reason. This comes as no surprise, as the average cost of rent has risen over 31% since 2019, and the average mortgage payment is the highest it’s ever been since 2008. Whether Americans are renting or owning a house, many are turning to side hustles simply to afford a roof over their heads.

Meanwhile, 19% used a side hustle to earn more income due to a career disruption like getting laid off. With over 7.8 million unemployed Americans at the end of 2025, according to the BLS, it’s no wonder that side hustles have become their go-to solution if they’re out of a job.

However, to some survey respondents, side hustles were more than just a temporary solution to a problem they were facing. In particular, there was a generational divide between those who saw a side hustle as a temporary boost of income and those who saw it as a genuine solution to economic uncertainty. For Gen Z, side hustles are temporary. Of the Zoomer respondents, 33% saw side hustles as a short-term boost. Of any other generation, Gen X was the most likely to report side hustles as a significant source for their savings. Up to 19% reported that 50% of their monthly savings came from side hustles.

Beyond long-term savings, many respondents saw a side hustle as a solution to building the kind of retirement savings they desired. Nearly half (46%) of those with a side hustle job funded at least 25% of their retirement savings from their extra income, not their primary job. As it turns out, a side hustle can be the solution to retiring on time or even early for many Americans.

AI Is Becoming a Side-Hustle Multiplier

“Unprecedented” is a term that many people use when talking about the current economy. With the conditions being extraordinary, many Americans have responded in kind by using AI in their side hustle work.

In the survey, 50% of Americans reported they used AI regularly in their side hustle. As a result, 20% reported that these actions improved their ability to earn or save money. It seems that by using AI to streamline their work, many Americans can do more work, effectively earning them more income to save or simply stay afloat.

Workers aren’t the only ones turning to AI to earn more money. Employers and clients are also looking more favorably upon AI and hiring more employees with AI experience. To stay competitive, our survey respondents (45%) have exaggerated their AI prowess as a way to take on more work. Of those who did this, 21% found that exaggerating connected them with more opportunities and financial gain. Only 19% saw little benefit.

Not everyone uses AI in their side hustle work, though. Of all the generations, Gen Z was the most likely to look upon it positively for financial savings, with 22% saying it significantly improved their ability to earn or save. In contrast, older generations either saw no benefit, simply didn’t use it, or believed it actively made their work harder.

Hustle Fatigue Is Rising

While more people are taking on side hustle work to save, it isn’t without its sacrifices. Even though the goal for many is to save and meet their financial goals, they end up forfeiting temporary comforts. And for many side hustlers, taking on more work wasn’t a choice — it was something they had to do if they wanted their families to stay financially secure and if they wanted to retire on time.

If they want to stay financially stable, they turn to their health as the first sacrifice. Despite older generations’ claims of millennial and Gen Z laziness, these generations were the most likely to work harder in spite of their health. Up to 33% of Gen Z and 35% of millennials took on additional work while already exhausted, compared to only 28% of Gen X.

For example, up to 32% of survey respondents took on additional work despite feeling exhausted, and 31% prioritized income over their own mental and physical well-being. Both of these statistics indicate that Americans don’t have the luxury of rest anymore.

Regardless of the generation, over half (51%) of all workers reported clocking in more hours than they wanted in the past year to support their financial needs. Still, half of the side hustlers believed that it wasn’t enough to stay ahead financially.

However, for many Americans, there comes a point where working more leads to a dead end. Inevitably, excessive stress and burnout loom for many Americans who take on more work. As a result, many have to scale back or even dig into their piggy banks instead of working more. Up to 20% of Americans had to scale back their side hustles or extra work due to burnout or stress. In addition, nearly a quarter (24%) of Americans dipped into their savings or retirement funds. A majority of those who did so (74%) only did it with the intention to cover everyday living costs instead of covering for emergencies or investments.

This isn’t reckless spending; many Americans have to work less or chip away at their savings account simply to have food at their table and a roof over their heads.

Retirement Saving Is Increasingly Informal, Uneven, and Side-Hustle Dependent

With more Americans working harder and taking up second jobs to save, the question is: where does the money go? While many are thinking of retirement savings, how they are saving differs significantly.

For instance, a majority of our respondents aren’t using accounts like a 401(k) or a Roth IRA. Over half of the respondents (53%) use a traditional savings account instead. In contrast, only 38% have a 401(k) or employer-sponsored plan, indicating that more people may not have the information about retirement accounts, or lack the resources to invest in one.

Following closely behind are the Americans who are choosing unconventional ways to save for retirement. There are those who put their future savings into cash or checking for easy access. These Americans prioritize liquidity over growth, which could be a result of distrust in unstable markets that could affect retirement accounts. Lastly, there is a growing percentage of Americans (24%) who put their savings into apps like Robinhood or brokerages, signaling that more people rely on self-directed investing. Still, there is a substantial minority of people (11%) who do not have any kind of savings for their future or retirement at all.

For a majority of Americans, putting finances towards their future wasn’t about contributing thousands of dollars a month. If anything, it looked more like slipping pennies into the piggy bank — something that is becoming more common as people budget for growing living costs. Of those who put finances toward some kind of retirement savings, the majority save $100-$249 per month (28%). In contrast, up to 10% of people are not sure how much money they put aside each month, reinforcing that more Americans remain financially exposed.

Americans Are Pushing Off and Redefining Retirement

With the average contributions to retirement savings and savings in general lowering due to growing economic uncertainty, many people, particularly those from older generations, are pushing off their retirement. Instead, many are looking at their retirement in a different light, considering different ways they can still earn a side income to stay afloat — even if that means they’re not working full time.

Over half of the survey respondents (55%) expect to retire in their mid-60s or later — the typical age to retire and receive Medicare and Social Security benefits. However, there is also a growing percentage of people who believe retirement in general is simply not in the cards due to their financial circumstances. Up to 19% don’t expect to retire or are unsure if they ever will. Gen X was the most skeptical generation. This generation quickly approaches the average age of retirement, and with the current economic climate, many may be anxiously wondering if they have enough to retire. In contrast, younger generations are more optimistic, with only 10% of millennials and 5% of Generation Z feeling pessimistic about their retirement future.

In the face of this pessimism, many are making choices to better their financial chances by postponing or delaying life events like:

Travel or taking time off for leisure (39%)
Taking care of their health (31%)
Buying a home (25%)
Having children or growing their family (18%)
Earning an education or receiving additional training (16%)

In the face of financial hardship, many Americans are making plans. What may seem like a retreat can also be a rise in financial literacy, as people look to their budgets to reevaluate what they can realistically fit in if they wish to retire on time.

The Modern Workday Is Fragmented Between Security, Hustle, and Exit Planning

The current economy isn’t just affecting long-term retirement plans. It affects how we work daily. For some, this may look like focusing on their primary job. For others, it may involve looking for a more profitable care or side gig. In either circumstance, the average workplace is shifting irrevocably.

In our survey, we found several key responses to increasing financial pressure:

Job hugging: A majority of respondents (23%) are honing in on their primary job by “job hugging.” Instead of looking elsewhere and risking the turbulent waters or the job market, many are deciding to stay loyal for job security and benefits.

Planning their next move: 16% of respondents are staying put while planning their next move — whether that includes an internal promotion or applying for jobs elsewhere.

Polyworking: 11% are actively balancing multiple jobs or income streams during the day.

Using AI: 10% of respondents are using AI to automate their tasks and free up time for side hustles or personal projects.

Checking out: A small minority of respondents (8%) are already burnt out and simply trying to get through the day.
Applying for other jobs: 4% are spending a majority of their time applying for other jobs, signaling active instability.

Of these responses, Gen Z was most likely to use AI (13%) and job hug (26%). In contrast, millennials were the most focused on their primary job (35%), and Gen X was most likely to strategically plan their next move (9%). No matter the generation, though, all respondents were changing how they acted and how they worked to either stay at their current financial position or earn more to put toward their savings.

Side Hustles are the Norm and the Key to Retirement

Side hustles are no longer a practice your friend does to pay off their student debt. It’s a behavior that a majority of Americans are practicing to manage their income, stability, and long-term security. For many workers, especially millennials and Gen Xers, extra work has become a core financial strategy, funding not just daily expenses but retirement itself.

Technology has accelerated this shift, lowering the barrier to new income streams. AI, in particular, has become a tool to multiply income sources, even if it is a source of pressure from employers and clients.

At the same time, the data underscores a growing tension between resilience and exhaustion. While many people have built financial independence through side hustle work, it has come at a physical and mental cost. As Americans continue to redefine what stability and retirement look like, the challenge ahead will be finding sustainable ways to balance short-term survival with long-term planning. These solutions shouldn’t come at the expense of well-being. Instead, they should help you live your life while keeping your future and goals secure.

Methodology

We surveyed 1,000 U.S. adults aged 21 – 60 years old who are actively earning extra income beyond their primary job, including those with side hustles, freelance or gig work, or a second job. In this survey, we sought to understand how Americans are using supplemental income to support long-term financial security and retirement planning.

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