Many people, after they retire, wish they had just a little more money. Some extra income would allow them to travel more or pursue some of their hobbies with less financial strain. If this sounds like you, you may be looking for some ways to supplement your retirement income. Below, we’ll list some common ways for you to explore:
Get a Job
One of the easiest ways to supplement your retirement income is with a job. You don’t necessarily need to work full-time anymore but a part-time job can help provide you with some extra income. Think about where your skills and interests lie, then explore what types of part-time jobs are available. In many cases, you may not even need to go anywhere if you can find a job where you can work from home. A part-time job is a great way to stay productive in your retirement and reduce your reliance on your retirement savings.
Start a Business
Like getting a job, you can also explore starting a business. Many retirees choose to start their own businesses, using the skills, experience, and connections they built throughout their careers. For example, if you spent your career working in graphic design, you may decide to start a business as a freelance designer.
If you’re interested in starting a business during retirement, make sure you’re away of all the costs involved. Many new businesses require startup money and don’t generate a profit for a long time. This is unlikely to fit your situation well, as you’re looking for immediate income and don’t want to spend more of your savings. However, if you can think of a business, you’d like to start that involves little startup cash and can generate returns quickly, this is a great option to consider.
Use a Reverse Mortgage
A reverse mortgage is one option to consider if you’re a homeowner. Reverse mortgages are available to anyone over the age of 62 who also has a considerable amount of equity in their homes. With a reverse mortgage, you’re essentially using the equity in your home in exchange for a cash loan. This would allow you to get the money you need while still remaining in your home. Reverse mortgages aren’t right for everyone though so it’s important you research them fully before deciding to go with them.
Become a Landlord
Another avenue to explore is becoming a landlord. A landlord is someone who owns a piece of property and rents it out. For example, you might own a small house that you can charge rent for on a monthly basis. Of course, not everyone has an extra home or piece of property that they can rent. If this isn’t you, you have a few options.
One option is to use your retirement savings to purchase a piece of property, then rent it out. Carefully weigh the costs of this with the expected return to ensure it makes financial sense. You could also rent out your current home. For example, you could rent out a spare room or a finished basement to generate some extra income. Another option is renting out your home, then downsizing to a smaller place and using the rental income to pay for it.
There’s a lot of responsibility that comes with being a landlord but it can also be a great source of income. Take some time to consider your options and determine if becoming a landlord is not only possible but feasible for your situation.
Sell Your Home
If you don’t want to rent out part of your home or take out a reverse mortgage, consider selling it. You may no longer need the amount of space you once did, meaning you’re paying for more than you need. By selling your home, you could then move into a smaller accommodation and use the profits to fund your retirement. There are many senior living options out there that are more affordable than owning a home. Leaving your long-time home can be sad but think about all you’d be able to do with the extra income.
Cash Out Your Life Insurance Policy
Finally, you can explore cashing out your life insurance policy. With some life insurance policies, you can cash out all or part of your policy, giving you a cash infusion. The amount that you’re able to withdraw from your policy will depend on several factors, such as how much it’s worth and your age. Of course, if you withdraw from your life insurance policy, it won’t pay out as much in the end. Carefully consider this option, along with what you want to leave behind, before deciding whether or not to cash out your policy.