5 Ways to Make Extra Money in Retirement
Put extra money in your pocket and fill time with what you enjoy with these 5 ways to make money during retirement.
Many people think about retirement as a time for grandkids, golf courses, card games, and long, leisurely strolls. However, many retirees like to keep up a side hustle to stay busy and earn additional income well into their golden years.
Retirement income may include Social Security, investments, pensions, and part-time or full-time work. Here are a few fun and creative ways to grow your retirement income.
Start a Consulting Business
If you miss what you did in your career and want to get paid to do some part-time work, considering consulting as a way to boost your retirement income. Consulting can keep your mind sharp, bring in significant income depending on your background, and offers the bonus of keeping you connected with industry friends and colleagues.
According to the Federal Reserve, about 32% of retirees earn income from wages, salaries, or self-employment, so you wouldn’t be alone if you kept working into retirement. With consulting, you can set your own schedule, take meetings late in the day so you don’t have to wake up with an alarm clock, and continue to build on the legacy of your career. Consulting is a great way for many retired business leaders to pad their bank account while riding off into the sunset of their working days.
Optimize Your Investments
Do you know what’s going on in your retirement and investment accounts? Savvy retirees generally utilized some form of retirement income planning. Not that you’re retired, you can spend more time fine-tuning and optimizing your investments to better support your retirement income needs.
Remember, investing isn’t the same as high-risk trading, which you should avoid with your essential retirement assets. Instead, consider risk, dividends, and how your investments can provide a long-term cash flow while minimizing what you have to withdraw from savings.
Sell a Craft or Handmade Good
Do you love baking, knitting, painting, or woodworking? There may be a strong demand for your talents that you can turn into an income-generating hobby. Farmer’s markets and online marketplaces both welcome contributions from sellers of all ages.
According to the Social Security Administration, the average retirement income from Social Security retirement benefits is around $1,500 per month. Selling something you make yourself could be a great way to supplement Social Security income without signing up for a regular work schedule. If you like fiddling with wood tools in the garage or knitting while you’re watching movies, you might as well make a few bucks from your handcrafted goods!
If you decide to sell anything that requires cooking or baking, make sure to follow any local and state health regulations. If you make local sales in-person or on your own website, consider any required sales taxes you may be required to collect.
Become a Part-Time Tour Guide
If you know and love your local area, you can put those years of knowledge to good use as a tour guide. Many factories, small businesses, and state or national parks are examples of places that could need friendly, knowledgeable tour guides. While this is a more traditional job that requires a fixed schedule, it could come with part-time hours and flexible shifts perfect for a retiree.
Remember, tour guides are more than just someone who reads a script and makes sure people don’t wander off from the group. They play an important role that can’t be scripted. If you live in a major city, you likely have more options to choose from. But even small-town residents could live near tourist attractions or destinations that host regular tours.
Teach at a Local Community College
Over the course of your long career, you likely became a bonafide expert in your field. If you have a combination of education and work credentials that could qualify you to teach, a local community college may love to have you join its faculty.
Many community colleges need part-time teachers who are subject matter experts and can teach a class once or twice a week. Teaching can be a fulfilling experience and one that comes with a modest paycheck. That could be a win for both local students and your bank account.
Don’t underestimate your retirement income prospects. When you’re retired, there’s still no limit to your income. And when you follow creative ways to earn more in retirement, you could wind up having a lot of fun at the same time.