How to Make Extra Money During Retirement

30/06/2024

A senior couple reviews their finances online.

Your Social Security benefits and savings may not go far enough to cover your post-retirement living expenses. According to the Schroders 2024 U.S. Retirement Survey, 47% of respondents faced higher-than-expected expenses, and only 44% felt confident about their retirement savings.

Check Out: 5 Signs Boomers Have Enough Savings To Last in Retirement

Finding more income sources could provide a more comfortable retirement along with potential opportunities to socialize or learn new things. Here are six options for earning extra cash during retirement.

1. Monetize Your Hobbies

Retirement comes with extra time to pursue hobbies you could monetize to improve your finances while still doing what you enjoy.

Whether you love to write, take photos or make crafts, consider selling your work online or offering services in your community. Other examples include selling the plants that you grow in your garden or the baked goods you make using your family’s special recipes.

2. Rent Out Things You Have

You could generate extra retirement income by simply renting out your things.

For instance, you could rent your driveway to someone without parking space, put a spare room on Airbnb or offer storage space in your garage. You could also rent out your vehicle on Turo or list various household items on Yoodlize.

Just carefully consider the effort and risks involved with renting out property.

3. Offer Professional Freelance Services

If you’d like to keep your skills sharp, consider offering professional freelance services related to your pre-retirement career. You might do the work directly, offer consulting services or tutor students in your professional field.

Another option is finding gigs doing something unrelated or new. Examples include walking dogs, delivering orders, taking care of people’s houses or being a caregiver.

4. Earn While You Declutter or Downsize

Downsizing and decluttering during retirement can offer several benefits, including potentially earning cash during the process.

Besides selling bigger assets like spare vehicles, you might have valuable household items that you could sell at a garage sale or on a platform like eBay, Etsy or Craigslist. Consider researching the values of items online before you toss or donate them.

5. Make Wise Investments

Your existing retirement investments can continue earning cash until you withdraw the funds. However, some of the spare money you have elsewhere could go toward new investments.

For example, you might put cash in a money market, high-yield savings or certificate of deposit account for interest payments. You could also invest in low-risk dividend stocks and mutual funds.

6. Find a Regular Part-Time Job

If you’re looking for more structured work and predictable income, taking on a regular part-time job might be better than freelancing or considering passive income options.

Working at a local business could provide enjoyable work that lets you interact with others and potentially stay active. You can also consider online part-time jobs to enjoy flexibility and avoid the commute.