While retirement is usually known for being fun, calm, easy, and adventurous, it’s not always like this. Not everyone is getting to live in a beach house or even getting to trek all over the world. Sure, these are usually the stereotypes, but it’s actually pretty far from reality. With that said, however, it is important to think about how one plans to spend their retirement. It’s frequently the stereotype and not working and everything already being paid for.
Some retired folks will even get some type of annuity which is an additional cushion for retirement. But what about those who are bored and have the will to work? What about those who are limited in the work they do? How about those who need just a bit more money to get by? Well, here is everything you need to know about making additional income during retirement.
Why Would You Need to Work During Retirement?
Sometimes it’s due to being in financial trouble, and other times it’s due to wanting more money or even just boredom. Some folks will even get out of retirement because of their will to work, or they found a passion during retirement that they want to make a profit fun. In general, there are so many different reasons, and it’s not exactly one size fits all either.
Different Ways to Make an Income During Retirement
To a degree, you might be slightly more limited on what you can and can’t do during your retirement when it comes to income. For instance, depending on the country you’re living in, there might be fines or even having your pension pulled. It’s all going to vary, so before doing anything, be sure to look into that first. But with that said, here are some different ways you could look into this.
Investments
One way to generate income in retirement is to invest. However, before you start investing, you need to ensure that your spending, saving, and debt levels are under control. You should also have at least six weeks of income set aside in a savings account for emergencies. You can use a bucket strategy to plan your investments for retirement. The first bucket holds assets that are highly liquid and fund a retirement paycheck in the near term, such as checking and savings accounts, certificates of deposit, and money market funds.
The second bucket holds a higher-return portfolio with an eye toward income generation. It’s really up to you how you want to invest, like stocks, bonds, or even real estate. In fact, real estate has actually become a pretty big one, especially for short-term rentals and for things like Airbnb.
You Could Always Go Part-Time
A lot of retirees will actually go this route. It can be refreshing if you genuinely want to do this rather than feel like you have to do this. Having that connection again and feeling a purpose with others can be huge. Whether you’re years out from retirement or already there, working part-time is an excellent way to supplement your income.
Not only does it allow you to learn new things, but it also provides a sense of purpose and connection with others. You’ll obviously want something that isn’t labor intensive, something that your health can handle, as well as mental health too. After all, you are technically in retirement, so you’re going to want something that’s more on the calmer side.
Start Up Your Own Business
While working a part-time job might not give you nearly as much flexibility, you could safely assume that if you start your own business, you can choose your hours, schedule, and how much effort you’d like to put into your work. You’d be surprised to know how common it is for retirees to bounce back by starting a small side hustle or even a full-length business. Nowadays, there are so many ways to start up a business, from a blog, YouTube, Etsy, drop shipping freelance work, selling food, crafts, and the list goes on and on.
Babysitting and Pet Sitting
If you have grandkids, then you are probably all too familiar with babysitting, but have you ever considered making a profit from it? Maybe not charge your kids, but you could make a small profitable side business by just babysitting every now and then. Elders seem to have a way with kids. But it doesn’t just have to be babysitting, as you could even consider pet sitting too. Obviously, it’s going to have to be with animals that you have experience with, but there are plenty of websites where you can sign up and even market yourself for sitting services.