10 Ways to Make Extra Money During Retirement
Written by TYE Medical on Dec 29th 2023
You might already be wondering how to make extra money during your “golden years''. Even though you’ve planned for retirement for decades, it’s an enormous step into the unknown as you try to manage fixed resources for the long term. As you can imagine, it’s not easy. According to 2022 research, 1 in 4 retirees admit they’re spending more than they can afford. As inflation continues to rise, it’s no surprise that retirement savings aren’t stretching as far as they have before.
To put it in perspective, consider the popular $1K per month rule. According to this strategy, you would need to set aside $240,000 to receive $1,000 per month in income. If you want to receive $2,000, you need $480,000, etc. This means you are withdrawing no more than 5% of your retirement account per year.
That’s a whopping nest egg and enough to make anyone feel a bit insecure. But you can bolster your financial means with some extra income even during your retirement. Here are some common and practical ways to earn income without returning to the daily grind of your pre retirement years.
1. Tutor Online
Since the COVID pandemic, online teaching and tutoring have become the norm. You'll find a number of online tutoring sites like Wyzant or Preply. Online teaching sites like Udemy are also popular. These are great opportunities to spend just a couple of hours in the evenings making some extra money…and actually helping people.
If you have the education and credentials, you could create an online college-level course and teach it as an adjunct professor. This option would bring in some noteworthy income. And remember that college courses don’t need to be core classes. You could teach on any subject that interests you, is in demand, and is approved by the college. You’ll find lots of options to explore as you consider this route.
2. Do Freelance or Consulting Work
Do you have a niche field? Many retirees find that their previous occupation lends well to consulting work or taking on projects. In either case, you can earn side income without returning to the job full time. For the most part, you can make your own schedule. You can kick-off this side hustle through an existing firm or start your own side business, working completely for yourself.
While this might sound stressful, especially if you’ve previously owned your own business, it’s different in retirement. Your side gig isn’t your main source, or only source, of income. The pressure is off, and you can take on only those projects you choose. And if it’s sovereignty you’re looking for, then starting your own side business would be more beneficial than gaining projects through an existing firm.
3. Write for Money
While it can be tricky to make a consistent, stable, full-time living writing, it makes a great side hustle. With the advent of the internet and the universal appeal of blogs, writing for an income stream has become an obtainable reality. And writing comes much easier when you choose to write in a field with which you are familiar.
Many companies and digital marketing firms hire writers directly or use an online, third-party content writing firm to acquire writers. Content writing services like Compose.ly, ContentFly, and Contently. These sites are eager to take on writers with experience in their clients’ specific fields. For instance, if you’re a retired investment banker, sites like Compose.ly would be very interested in bringing you onboard as a finance writer who specializes in investments.
Typically, content writing sites pay a bit less than writing directly for a company, but they also do all the work of getting clients and managing them. All you need to do is choose your projects and write them. As long as you meet a minimum quota per month (which usually isn’t much), you can continue as part of their writing team.
4. Teach English
Around the globe, English is in high demand, which means teaching English online is a great opportunity for native speakers. As with online content writing, there are websites that can connect you with people who want to learn the language. If you have a background in education, you may have an edge on certain positions. But there are many opportunities available even for non-teachers. In most cases, you can choose to work with adults or children depending on your preference.
5. Sell Hand-Crafted Items
Are you a closet artisan? Tax preparer by day and homemade jewelry maker by night? Whatever your creative ability might be, it’s probably marketable. The internet has made selling goods online a fairly simple endeavor.
Consider making your handmade goods at home (or from another location) and selling them through an established site or one of your own. If online isn’t your thing, you can also sell goods at local craft fairs or even advertise in coffee shops or crafty thrift stores.
6. Pet Sit or Dog Walk
If you’re an animal lover and have a fenced-in backyard, you can offer pet services as a lucrative side gig. As an average hourly wage, pet sitting is considered by some to be the best-paid side hustle.
Money aside, canine companionship offers other benefits like reducing depression and increased activity. All that dog walking and frisbee throwing adds up and gets you out in the sunshine. And the best part is that you don’t even have to own your own dog, which can have a hefty price tag attached. You get to enjoy the benefits of pets without actually having to pay for one.
7. Rent Out a Room on Airbnb
It’s not unusual for retirees to have more houses than they need. If you have an extra room or two and live in an area that draws visitors, you can rent that additional space out on sites like Airbnb. And since you get to set room availability, you don’t have to worry about having paid guests when your family is in town.
This can be a very flexible and passive way to earn extra money during retirement if you’re comfortable sharing space. But keep in mind that you set the rules, and most people who just rent a single bedroom (with bathroom access) don’t plan to do anything but sleep there.
If you're fortunate enough to have a mother-in-law apartment on your property or a finished basement, you can offer more space and charge more. This type of rental often attracts families and others who want their own space during their vacation week.
8. Care for Children and the Elderly
If you’ve made it to retirement and still possess a healthy dose of patience, consider babysitting or caregiving for people who need assistance with daily life. You don’t need specific experience, and it doesn’t require nursing skills. You can decide how much time per day and week you want to spend caring for others.
This can be a rewarding way to spend some of your retirement days and earn extra income as a retiree. If you don’t personally know anyone in need of these services, agency websites can connect you with those who need basic care. When caring for the elderly, you might make sandwiches, act as a companion, or watch out for your patient’s general welfare.
9. Help Out at School
Schools are often willing to pay for help. Whether public, private, or faith-based, most schools need substitute teachers, crossing guards, assistant athletic coaches, and assistant teachers. These roles don’t require a degree in education and are often part time. Contact some schools near you and find out what they need. This is a great way to earn some extra money while staying close to home.
10. Become a Mystery Shopper
Companies want feedback on their stores, products, and customer experience. They hire mystery shoppers to provide it. If you live in a large city, you'll have many mystery shopping opportunities close by. You can still be a mystery shopper if you live in a small city or rural area if you’re willing to drive a little further.
You can sign up with a mystery shopping agency and explore local opportunities with companies who have need of your services. These companies are looking for people who fit their product or company’s customer demographics. If you are the age, gender, etc. of their primary customer base, they will be interested in bringing you on board as a mystery shopper.
Bottom Line
Many retirees find peace of mind by making some extra money during retirement. It can be helpful to take on a low-pressure side gig while you can. This list of common ways to supplement your income during retirement isn’t conclusive but should get you thinking in the right direction. But remember to take on gigs and projects that you have familiarity with or enjoy. This will make the endeavor more enjoyable and less stressful.
