In the eyes of many, retirement means relaxation, travel, and doing what you want. However, the reality is that many retirees are also looking for ways to supplement their income. After all, Americans are more worried about not having enough money to support themselves than death itself. A recent survey showed that 63% of respondents have this concern, higher than 57% in 2022. This concern is caused by multiple factors such as inflation, social security, and tax burdens.
Furthermore, according to a study commissioned by the Pew Charitable Trusts based in Pennsylvania last year, it is projected that by 2040, the income replacement goal for low-income families will fall short by $7,050 annually. Due to insufficient savings, public assistance programs will be stretched thin, tax revenues will decrease, and household expenditures for retirees will decrease. At the same time, a growing fiscal burden will shift the tax burden onto a decreasing number of working-age population.
In fact, supplementing retirement income is not just a financial issue. Supplementing income after retirement can keep us energized and eliminate the sense of loneliness post-retirement. Additionally, we can pursue passions that we couldn’t during our working years.
Fortunately, with the development of the modern economy, retirees can earn multiple forms of income while enjoying retirement life. Here are some handy tips for retirees on earning extra income that are both practical and enjoyable.
Retirees with professional expertise can offer freelance services or consulting services to capitalize on their professional skills. Many companies hire experienced professionals part-time in areas such as marketing, accounting, and human resources, or on a project-based basis.
For example, if you are a retired accountant, you can start an accounting consultancy business to help small businesses streamline their financial management while enjoying a flexible schedule. Additionally, utilizing freelance online platforms such as Upwork, Fiverr, and Freelancer allows you to easily connect with clients worldwide.
Tips for getting started:
Tutoring or teaching provides a fulfilling outlet for many retirees. If you are an expert in math, science, or languages, you can tutor students online or in person. Platforms such as VIPKid and TutorMe offer flexible tutoring opportunities.
Internal business data from language tutoring platform Preply shows that online tutors typically charge $18.30 per hour. However, the actual fees vary depending on the subject, ranging from $10.00 to $38.90 per hour.
Teaching creatively:
Hobbies are not just a pastime. They can also become a worthwhile entrepreneurial endeavor.
As a retired teacher, you can operate a shop on the major e-commerce platform Etsy using your woodworking hobby. In addition to selling handicrafts, you can also sell woodworking templates online and offer woodworking courses. Handicrafts can be traded at handicraft fairs and local community markets, as well as sold on Etsy.
Monetizing hobbies:
Another strategy to generate stable income is investing in dividend stocks. Why do retirees favor dividend stocks? Let’s analyze it, mainly for the following reasons:
Essentially, dividends are a portion of company profits. If retirees hold enough stocks issued by dividend-paying companies, the quarterly dividends can accumulate into a significant income stream. After retirement, we can withdraw this income from our investment account as needed, providing a flexible and reliable income source.
Investing tips:
Real estate remains a popular income source for retirees. Whether investing in vacation rentals, managing long-term leases, or flipping houses for sale, real estate is a lucrative and attractive retirement investment.
Through real estate investment platforms such as Fundrise, we can enter the real estate market without purchasing properties or becoming landlords. You can open a personal investment account for as little as $10, although the Fundrise IRA (Individual Retirement Account) program requires a minimum investment of $1,000.
Real estate choices:
Part-time work is an excellent way for retirees to stay active and earn additional income. Unlike full-time jobs, flexible work such as customer service, retail, or seasonal work can provide retirees with various platforms to engage in social interactions. Additionally, gig work, which includes online platforms like TaskRabbit, Lyft, DoorDash, Instacart, and Rover, is a flexible, on-demand type of work that constitutes the gig economy.
Popular part-time opportunities:
In today’s digital age, starting an online business is easier than ever before. Many online platforms allow retirees to create e-commerce stores, including BigCommerce, WooCommerce, Wix, Squarespace, PrestaShop, Magento, Square, and Volusion. For those without physical products, affiliate marketing, dropshipping, and print-on-demand are also viable options.
Steps for starting an online business:
For retirees who enjoy writing, photography, or videography, content creation is an interesting and profitable career. How? Advertising, sponsorships, and affiliate marketing are some ways bloggers, podcasters, and YouTube channels generate revenue.
Creative content:
Virtual assistants (VAs) provide remote administrative support to businesses. Typical tasks include email management, scheduling, customer service, and social media management. With the growing demand for virtual assistants in the market, online platforms like Belay and Time Etc provide such opportunities.
Required skills:
Retirees can also earn some income by working for non-profit organizations, contributing positively while making some money. In addition to fundraising, event planning, and administrative work, many non-profits hire part-time staff.
How to get involved:
After retirement, we can create income without feeling like we are working deliberately. Retirees can use their skills, passions, and modern technology to earn extra income. Whether freelancing, teaching, investing, or starting a small business, the options are endless. Choosing income-generating avenues that align with your interests and lifestyle can make retirement life both enjoyable and financially rewarding.