Key Points

Retirees can supplement Social Security with part-time work.
They can also make investments that will generate passive income or build wealth over time.

Each month Social Security distributes benefits to tens of millions of Americans most of whom are retirees. Although Social Security serves as a vital program delivering essential income it is rarely a retiree's only source of funds.

In June the average monthly benefit for retirees stood at roughly $2,084 or just over $25,000 annually. That sum is often insufficient to support most lifestyles.

While many retirees have accumulated at least some savings over their lifetimes it remains common for them to seek additional ways to increase earnings even after claiming Social Security. Here are three approaches to supplement your Social Security income before 2026 ends.

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1. Acquire dividend stocks

Putting money into dividend stocks can serve as an effective route to reliable yearly passive income. There may also be potential for price growth. Dividend stocks help funds stay in line with inflation and deliver cash each year.

Yet it is vital to recognize that not every dividend stock performs alike. Those offering high yields may indicate company risk or appear elevated after a share price drop due to underlying problems.

The secret to selecting strong dividend stocks lies in locating firms that produce sufficient earnings and free cash flow to sustain the yearly payout while also increasing it in coming years. Focusing on companies with solid histories is wise.

A few examples include Coca-Cola and Realty Income which feature strong histories and business models. Investors may also review lists of Dividend Kings for suggestions. A Dividend King is a publicly traded firm that has paid and raised its yearly dividend for at least 50 years.

If buying individual stocks still seems too uncertain consider the Schwab U.S. Dividend Equity ETF which follows an index of shares noted for dividend quality and sustainability. The exchange-traded fund carries a trailing yield of 3.3 percent and has risen about 32 percent over the past five years.

Although the wider stock market posted stronger gains the Schwab U.S. Dividend Equity ETF shows lower volatility and delivers steady yearly income.

2. Secure a part-time job

A part-time job offers another route to supplement Social Security income. While some individuals retire to cease working the shift can prove challenging for those who spent decades in the workforce.

Taking a part-time role can ease this change while generating income. Options exist with local businesses for those preferring in-person work remote opportunities for those seeking flexibility or gig economy roles such as driving for ride-share services that allow adaptable schedules.

Some find that working 10 to 20 hours weekly strikes the right balance of earning extra funds while staying active or easing into a life without full-time duties.

3. Buy a rental property

This option may not suit everyone and consulting a financial advisor is recommended before proceeding yet acquiring a rental property could prove beneficial if affordable with available savings.

For starters the right property can produce at least modest monthly income while a tenant helps cover the mortgage. Property value should also rise if held for five or 10 years or longer.

Retirees often have extra time to oversee a rental when not employed full-time. It can further serve as a way to own a vacation home for personal use part of the year while renting it out otherwise.

Owning rental properties may bring tax benefits and if personal management is undesired a property management firm can handle operations for a share of the rental income.