Retirement is often portrayed as a time for relaxation, travel, and hobbies. Some retirees, however, find ways to supplement their income. After all, Americans are more worried about running out of money than dying (63%), up from 57% in 2022. Inflation, Social Security, and taxes are the reasons for this fear.
Further, according to a study commissioned by the Pew Charitable Trusts last year, vulnerable households are predicted to fall behind their income replacement target by $7,050 per year by 2040. As a result of savings shortfalls, public assistance programs will be stretched, tax revenue will be depressed, and retiree household spending will decline. At the same time, a growing fiscal burden is being transferred to a shrinking population of working-age taxpayers.
However, supplementing your retirement income goes beyond finances. It also lets you remain active and combat retirement concerns like isolation. Moreover, you can pursue passions you could not pursue during your working years.
Fortunately, thanks to the modern economy, retirees can generate income while enjoying their retirement years. Below are some tips for earning extra income that are both practical and enjoyable.
1. Freelancing and consulting.
A retiree with professional expertise can capitalize on their knowledge by offering freelance services or consulting. Many companies hire experienced professionals part-time or project-by-project in areas such as marketing, accounting, and human resources.
Let’s say you are a retired accountant. You could launch a consulting business that helps small businesses streamline financial management while enjoying a flexible schedule. Moreover, with platforms like Upwork, Fiverr, and Freelancer, it is easy to connect with clients worldwide.
Tips for getting started;
- Decide which industries and skills you want to focus on.
- Set up a professional profile on freelancing sites.
- Establish a network of former colleagues and professionals in the industry.
2. Tutoring and teaching.
Tutoring or teaching provides a fulfilling outlet for many retirees. If you are an expert in mathematics, science, or a foreign language, you can tutor students online or in person. Several platforms, such as VIPKid and TutorMe, offer flexible teaching opportunities.
Data from Preply’s internal business data shows that an online tutor typically charges $18.30 (USD) per hour. However, depending on the subject being studied, an online tutor can charge anywhere from $10.00 to $38.90 per hour.
Ideas for teaching;
- Tutoring services for K-12 and college students.
- Teaching English as a Second Language (ESL).
- Offering music, art, or craft lessons.
3. Turning hobbies into income.
A hobby can be more than just a pastime. It can also become a profitable business venture.
As a retired teacher, you could use your woodworking hobby to run an Etsy store. Besides handmade crafts, you may also be able to sell wood carving templates and offer woodworking classes online. At craft fairs and local community markets, handcrafted items can also be sold on Etsy.
Ways to monetize hobbies;
- Sell handmade crafts or art online.
- Offer workshops or classes to teach others your craft.
- Start a blog or create YouTube videos to share your passion and earn money through ads and sponsorships.
4. Investing and dividend income.
Another strategy to generate a consistent income? Investing in dividend-paying stocks. But why do retirees love dividends so much? Well, let’s break it down:
- Direct income stream. A dividend is essentially a payment distributed by a company to its shareholders. Payments like these can supplement other sources of retirement income, helping to cover living expenses.
- Growth potential. It is common for dividend-paying companies to be established, but that doesn’t mean they are stagnant. It is common for dividend-paying companies to also demonstrate growth potential. As a result, your investment could appreciate over time while you continue to receive dividend payments.
- Shareholder alignment. Investors often consider dividend-paying companies to be shareholder-friendly. This suggests alignment between the company’s goals and investor interests, resulting in a sense of partnership.
- Financial stability. Companies that consistently pay dividends are generally mature and financially healthy. Because of their past experience weathering economic storms, they are considered to be more resilient during economic downturns. Because of this stability, retirement investors can feel more at ease.
Essentially, dividends are shares of a company’s profits. These quarterly payments can accumulate into a substantial income stream for retirees who hold sufficient shares of dividend-paying companies. During retirement, you can withdraw this income from your investment account as needed, providing a flexible and reliable source of income.
Investment tips;
- Assess your risk tolerance with the help of a financial advisor.
- Invest in a variety of assets to spread risk.
- Dividends can be reinvested to grow income in the long run.
5. Real estate ventures.
Real estate remains a popular source of income for retirees. Whether you invest in vacation rentals, manage long-term rentals or flip houses; real estate can be a lucrative and engaging retirement investment.
However, platforms like Fundrise allow you to access the real estate market without buying properties or becoming a landlord. The cost of opening a personal investment account is just $10. There is a $1,000 minimum requirement for Fundrise IRAs.
Real estate options;
- Use Airbnb to rent out a spare room or property.
- Invest in rental properties to generate passive income.
- Act as a property manager for other owners.
6. Part-time jobs and gig work.
A part-time job is an excellent way for retirees to stay active and earn extra income. Unlike full-time employment, flexible roles like customer service, retail, or seasonal work offer social interaction and structure. Further, platforms like TaskRabbit, Lyft, DoorDash, Instacart, and Rover offer flexible, on-demand employment in the gig economy.
Popular part-time opportunities;
- Retail or hospitality roles.
- Delivery driving or ridesharing.
- Pet sitting or dog walking with Rover.
7. Online business and e-commerce.
Getting started with an online business is easier than ever. Many platforms are available to retirees for creating e-commerce stores, including BigCommerce, WooCommerce, Wix, Squarespace, PrestaShop, Magento, Square, and Volusion. Affiliate marketing, drop shipping, and print-on-demand are viable options for those without physical products.
Steps to start an online business;
- Identify a niche and research the market.
- Create a user-friendly website.
- Attract customers using social media and search engine optimization.
8. Content creation and blogging.
Content creation can be a fun and lucrative venture for retirees who enjoy writing, photography, or videography. How? Ads, sponsorships, and affiliate marketing are some of the ways bloggers, podcasters, and YouTube channels can generate income.
Content ideas;
- Experiences and tips on traveling.
- How-tos related to hobbies.
- Retirement-related financial advice.
9. Virtual assistance.
A virtual assistant (VA) provides administrative support to businesses remotely. Typical tasks include email management, scheduling, customer service, and social media management. As demand for VAs has grown, platforms like Belay and Time Etc. offer opportunities.
Skills needed;
- Communication and organization.
- Working knowledge of office applications.
- A basic understanding of social media.
10. Nonprofit and community work.
It is also possible for retirees to earn some income while making a positive impact by working for nonprofit organizations. In addition to fundraising, event planning, and administrative work, many nonprofits hire part-time staff.
How to get involved;
- Get in touch with local charities and community centers.
- Browse online job postings for nonprofits.
- Explore opportunities by volunteering first.
Final Thoughts
In retirement, you can earn money without feeling like you’re working. Retirees can generate extra income using skills, passions, and modern technology. Whether you want to freelance, teach, invest, or start a small business, the options are endless. Choose paths that align with your interests and lifestyle to ensure your golden years remain enjoyable and rewarding.
FAQs
What are some common ways retirees can earn extra income?
You can choose from several options, including;
- Part-time work. It is common for retirees to find part-time work in their previous fields or new fields of interest.
- Freelancing or consulting. In retirement, retirees can offer freelance services or consulting in their expertise.
- Turning hobbies into income. Some retirees monetize their hobbies by selling crafts, artwork or offering lessons.
- Renting out property. If you have a spare room or property, renting it out can provide you with a steady income stream.
- Investing. In retirement, retirees can invest in dividend-paying stocks, bonds, or real estate to generate passive income.
How can I find part-time work or freelance opportunities?
There are numerous resources available, including;
- Online job boards. There are usually listings for part-time and freelance positions on sites like Indeed, LinkedIn, and FlexJobs.
- Networking. Inform your family, friends, and former colleagues that you seek employment. They may know about opportunities.
- Local businesses. Find out if local businesses have part-time openings.
- Freelance platforms. Several websites like Upwork and Fiverr connect freelancers with clients seeking their skills.
What are some tips for successfully turning a hobby into income?
The following tips will help you get started;
- Identify a marketable skill. Assess whether you can turn your hobby into a product or service people will pay for.
- Research your market. Find out who your potential customers are and how much they are willing to pay.
- Set realistic prices. Your work shouldn’t be undervalued, but you should also be competitive in your pricing.
- Market your offerings. Share your products and services via social media, word-of-mouth, or local events.
How can I generate income from investments?
Here are a few options;
- Dividend stocks. Consider investing in companies that distribute regular dividends to shareholders.
- Bonds. Invest in bonds issued by corporations or governments that pay interest.
- Real estate. Rent out properties to generate income.
What are some important considerations before deciding to make money in retirement?
You may want to consider the following;
- Your financial needs. Calculate how much additional income you will need to supplement your retirement savings.
- What interests you, and what skills do you have? You should choose activities you enjoy and are good at that will generate income for you.
- Your time commitment. Identify how much time you’re willing to devote to earning extra income.
- Tax implications. Become familiar with the tax implications of your income-generating activities.
Image Credit: Andrea Piacquadio; Pexels
