The best side hustles for retirees in Canada use skills and time you already have, run on your own schedule, and cost little to start: freelance bookkeeping, tutoring, pet and house sitting, handyman work, freelance writing, and selling baking or crafts. The main Canadian twist is that side hustle income counts toward your net income, which can trigger the Old Age Security (OAS) recovery tax and changes how your CPP contributions work. Both rules are explained below with links to the official pages.
Each pick links to a full beginner guide, so this page works as a hub. If you’re also caring for grandchildren, the stay-at-home parents guide has more home-based ideas, and the introverts guide lists quieter, solo options.
| Fact | Detail for retirees with a side hustle in Canada |
|---|---|
| OAS recovery threshold (2025 income) | $93,454 of net income before adjustments. Government of Canada |
| OAS repayment rate | 15% of income above the threshold. Government of Canada |
| CPP while working | Not reduced. Government of Canada |
| Post-Retirement Benefit | Ages 60 to 70, receiving CPP, working and contributing. Government of Canada |
| CPP contributions, 65 to 70 | Optional; self-employed people elect on Schedule 8. Government of Canada |
| Self-employment income | Reported on Form T2125 |
What are the best side hustles for retirees in Canada?
The best retiree side hustles in Canada turn a career skill or a hobby into flexible paid work with little upfront spending. The groups below match common starting points.
If you have office or professional experience
Freelance bookkeeping suits former finance and admin staff, and tax-season bookkeeping and tax prep gigs concentrate the work in a few months. Virtual assistant work and freelance writing use the same organising and communication skills from home.
If you like teaching
Online tutoring and teaching English online pay for patience and subject knowledge, and you choose how many sessions to book.
If you like animals or a change of scenery
Pet and house sitting and dog walking are flexible and local. If you’d rather use an app than find clients yourself, compare Rover vs independent dog walking.
If you’re handy
Handyman jobs such as small repairs, assembly, and hanging shelves suit people with tools and know-how. Pick jobs that match your physical comfort; ladders and heavy lifting are optional.
If you make things
Home baking, an Etsy shop, and holiday market tables turn a hobby into sales. Check your province’s food rules first in cottage food rules by province.
| Retiree situation | Good first pick | Typical startup spend (illustrative, verify locally) |
|---|---|---|
| Finance or admin background | Freelance bookkeeping | $0–$300 for software and a course refresh |
| Former teacher or subject expert | Online tutoring | $0–$60 for a headset |
| Love animals | Pet and house sitting | $0–$50 |
| Own a tool kit | Handyman jobs | $0 if your tools are already in the garage |
| Bake or craft already | Home baking or Etsy | $0–$200 for packaging and fees |
How does side hustle income affect OAS in Canada?
Side hustle income can reduce your OAS pension if it pushes your net income above the annual threshold. The Government of Canada’s OAS repayment page says that if your net income before adjustments (line 23400 of your return) exceeds $93,454 for 2025, you may have to repay part or all of your pension, at 15% of the amount above the threshold. The repayment is then deducted from future OAS payments as a recovery tax, spread over the following July-to-June period.
The government’s own worked example: with 2025 income of $100,000, the excess is $100,000 − $93,454 = $6,546, and 15% of that is $981.90, repaid over July 2026 to June 2027. The recovery tax page lists the threshold for 2026 income as $95,323. Because the threshold applies to net income, business expenses you can deduct on your T2125 lower the figure that counts.
Illustrative example
This is a teaching sketch with assumed numbers, not a forecast or advice. Suppose a retiree’s net income from pensions and investments is already $90,000 for 2025, and a bookkeeping side hustle adds $8,000 of net self-employment income. Net income becomes $90,000 + $8,000 = $98,000. The amount over the threshold is $98,000 − $93,454 = $4,546, and 15% of that is about $682 of OAS repaid. The side hustle still adds money overall, but the OAS repayment and income tax both come out of that $8,000, so set money aside for both.
Does working reduce CPP in Canada?
No. The Government of Canada’s CPP eligibility page says your CPP retirement pension will not be reduced if you work while receiving it. What changes is your contributions:
- Age 60 to 65: the Post-Retirement Benefit page says CPP contributions are mandatory for working CPP recipients under 65.
- Age 65 to 70: you can choose to stop contributing. Employees use form CPT30; self-employed people complete the relevant section of Schedule 8 with their return.
- Age 70: contributions stop, even if you’re still working.
- Self-employed: you pay both the employee and employer portions. The CPP contributions page says self-employed people pay the full 11.9% on net business income between the minimum and maximum amounts.
Each year of contributions while you receive CPP builds a Post-Retirement Benefit, a lifetime amount paid automatically the following year. Whether contributing after 65 is worth it depends on your situation; a fee-only planner or Service Canada can help you weigh it.
What mistakes do retirees make with side hustles in Canada?
The common retiree side hustle mistakes in Canada are forgetting the OAS threshold, assuming CPP contributions stop at retirement, and underpricing professional skills.
- Not modelling OAS. Estimate your net income before taking on a big contract late in the year.
- Missing the CPP change. Self-employed earnings under 65 trigger mandatory contributions if you receive CPP.
- Underpricing. Decades of experience are worth more than beginner rates; see freelance bookkeeping pricing as a pricing model.
- No records. Keep receipts from day one so deductions lower your net income; see side hustle expense deductions.
- Taking on physical work without insurance. Ask an insurance broker about liability coverage for handyman or pet care work.
Which tax rules apply to retiree side hustles in Canada?
Retiree side hustle income in Canada is taxed like anyone else’s. Self-employment income and expenses go on Form T2125, CPP contributions follow the age rules above, and GST/HST registration becomes mandatory only after taxable sales exceed the $30,000 small-supplier threshold. Side hustle profit is added on top of your pension income, so plan a set-aside with how much tax to set aside and RRSP-season money tips.
Simple invoicing software such as FreshBooks TODO-AFFILIATE can track client income and expenses, but a spreadsheet works fine for a handful of clients.
This is not tax, legal, or financial advice.
Which guides sit next to retiree side hustles in Canada?
Retirees choosing between options should also read how to report side hustle income to the CRA, the record keeping guide, and handyman pricing. If you prefer solo, low-contact work, the introverts guide has more desk-based picks. Retirees from a regulated profession should read side hustles for retired professionals for licence-status points.
What are the common questions?
Will a side hustle reduce my OAS pension in Canada?
It can. If your net income before adjustments for 2025 is over $93,454, you repay 15% of the amount above that threshold, deducted from OAS payments from July 2026 to June 2027. Deductible business expenses lower your net income.
Does working while collecting CPP reduce my pension?
No. The Government of Canada says your CPP retirement pension is not reduced if you work while receiving it. If you're under 70 and still contributing, you can build a Post-Retirement Benefit.
Do self-employed retirees have to pay CPP contributions?
If you receive CPP and are under 65, contributions on self-employment earnings are mandatory and you pay both portions. From 65 to 70 you can elect to stop by completing the relevant section of Schedule 8. Contributions stop at 70.
What is the OAS threshold for 2026 income?
The Government of Canada's recovery tax page lists $95,323 as the minimum income recovery threshold for 2026 income, affecting payments from July 2027 to June 2028. Confirm the live figure on the official page.
What are good side hustles for retirees in Canada?
Freelance bookkeeping, online tutoring, pet and house sitting, handyman work, freelance writing, and selling baking or crafts are common fits because they use existing skills and run on your own schedule.
Which sources support this guide?
The rules, rates, and platform requirements in this guide are checked against these primary sources. Retail price ranges are labelled as ranges to verify locally, and they are not quotes.
- Repayment of Old Age Security pension — Government of Canada
- Old Age Security pension recovery tax — Government of Canada
- CPP retirement pension: Do you qualify — Government of Canada
- Canada Pension Plan Post-Retirement Benefit (PRB): Eligibility — Government of Canada
- Contributions to the Canada Pension Plan — Government of Canada
- Form T2125, Statement of Business or Professional Activities — Canada Revenue Agency
- When to register for and start charging the GST/HST — Canada Revenue Agency