How to Boost Your Income in Retirement
Just because you retire, it doesn’t mean the bills stop coming. It’s looking like many people will still be paying their mortgages well into retirement age, so it’s important to have a financial plan in place. Retirement doesn’t mean you won’t be able to earn ever again. In fact, it can mean that you have more options than ever. The earlier you start planning for your retirement, the better. So, here are some ways to boost your income before and after retirement.
Before Retirement
Pension Scheme
It’s never too late to get yourself into a pension scheme. The more money you contribute, the more savings you’ll have when you retire. Find out if your workplace runs a pension scheme, where a portion of your income is automatically taken from your paycheck and placed in your pension fund. If not, there are many banks that run schemes. If you can’t find a scheme that suits you, open a savings account and start putting 10% of your earnings away each month.
Boost Low Incomes
If you work part time because of family commitments, health issues or anything else, you may be able to boost your income. Take a look at the earned income credit calculator to find out if you’re entitled to an income boost from the IRS. It may be that you can claim a tax refund because you’re receiving a low income. Any extra money you can get will be a great help towards saving for your retirement.
Know Your Pension Entitlements
We don’t tend to learn much about state pensions until it’s almost too late. It’s important to know how your pension will work and what options you have in front of you. Can you receive a tax-free lump sum? Would you prefer to have your pension given to you in instalments, almost like a wage? How you receive your pension may be based upon how well you feel you can handle money. If you’ve got a big pot of money to dip into freely, you may end up spending more than you should. Do some research and decide which route is best for you.
After Retirement
Run a Bed & Breakfast
Running a bed and breakfast is a fantastic option for retirees. Along with creating a new income, having a B&B means you can work from home, doing the things you would normally do anyway. It’s certainly not an easy job by any means, however, it can offer some diversity during retirement. Many pensioners can become lonely after leaving a job where they have been surrounded by people. Running a B&B is a good mixture of socialisation and peace and quiet.
Online Business
The beauty of retirement is having the time to finally do something you’ve always wanted to. Are you a keen artist? Why not sell your canvases to admirers online? Thanks to technology, there are so many options for building small businesses. It will also allow you the flexibility to work as and when you need to. However, establishing a small business can initially take a lot of time and effort so it’s not for the faint of heart.
Go Back to Work
Many people who retire find that they miss going to work once the initial holiday period is over. If you’re still able and willing to work, many companies are happy to employ retirees. You have a wealth of experience that younger employees won’t be able to offer. For instance, many retired teachers return to work on a supply basis, not only to teach the children but to give other younger teachers tips on how to establish authority in the classroom. If you feel like you can continue to work, there should be nothing stopping you. If you’ve been a valued member of your workplace for many years, you may even have the luxury of setting your own schedule.
Junk Sales
It may not sound like much, but just think about the many things you have stored in your attic, garage or basement. We tend to accumulate many things over the years, and you may find that some of those things have a lot of value. Old toys can turn into collector’s items, old ornaments may be worth more than you think or there may be someone out there looking for something particular for sentimental reasons. If you’re looking to make some extra cash, why not have a clear out to see what you can find.
Serve the Community
Once you have more time on your hands, you may just want to do something to give back to the community and get you out talking to people. You may find that there are jobs that others are unwilling to take because they don’t pay enough. For example, a charity shop worker or litter picker. Get in touch with your local council to find out if there’s anything they can offer you. If you like being outdoors and amongst people, it could be ideal. And, you’ll get to top up your bank balance.
Teach a Class
Are you a skilled knitter? Have you practiced yoga for years? Wherever your talents lie, there may be many people interested in learning what you know. Before teaching a class, you may need to cover yourself with public liability insurance first. However, it’s fairly easy to book a venue and advertise a class, and once you get going, you could make a decent amount of money every week, along with the satisfaction of teaching something you love.
Gardening
This may not be a regular income, but garden lovers can make money! Take a picture of your prize flower and send it into magazines. You could be paid for your photos. You can also enter your garden into competitions with cash prizes. You’ll get to indulge in a hobby, with the possibility of winning a cash lump sum for your efforts. Of course, money isn’t guaranteed, but if you spend a lot of time gardening, it’s certainly worth a shot.
Retirement doesn’t mean you have to stop earning, so get creative with your ideas.
