Last Updated: December 19, 2024
Just because you’re retiring doesn’t mean you have to stop making money altogether. Today, there’s a way to make money doing just about anything, which can make it that much easier to retire regardless of your age. Here are some ideas to consider if you’re hoping to set up some income streams, no matter how small or large, to supplement your retirement income.
1. Get a Side Job
Working after retirement keeps your mind active and sharp, boosts your social life and provides extra income. If you left your previous employer on good terms, consider inquiring about reducing your hours to part-time. Or, try your hand at something new. You probably won’t be the oldest person on the job. The Bureau of Labor Statistics predicts that 30% of all 65 to 74-year-olds will be working in 2026.1 Once you begin receiving Social Security benefits, make sure to check on earnings limits.
Something to think about: 70% of our customers plan to work part-time in retirement. See how adding part-time work can increase your Retirement Score.
2. Sell Assets
Declutter your house and pocket some cash in the process by selling your stuff at a garage sale or online through Nextdoor, Poshmark, Craig’s List or eBay.
3. Move to a Retiree-Friendly Area
While interest rates are low and housing markets are hot, you may want to relocate to an area with a lower cost of living. Florida and Texas are two retirement-friendly states where you can get more house for the money and save on taxes, too. For example, moving from NYC to Florida can add 12 years to your Retirement Score and allow you to say goodbye to income taxes and high cost of living.
4. Ladder Money Markets and CDs
Staggering maturity dates for Money Market accounts or CDs (3 months, 6 months, 9 months, 12 months, etc.) makes your investments more readily available while earning higher rates of interest on longer term investments. Laddering these accounts also protects you from investing too much money at too low a rate for too long a time.2
5. Rent Part of Your Home
If you have a spare bedroom or guest house, consider renting it for extra income. Or perhaps you could rent storage space in your garage, or offer to park a boat or an RV on your property for extra cash. Just make sure to check out tax ramifications and HOA guidelines first.
6. Consider Home Equity
Your home is not only your castle; sometimes it can be your cash cow. Leverage the equity in your house. Home equity loans, reverse mortgages and even the outright sale of your home can provide the extra cash you need. Stretch those dollars even more by downsizing or moving to a retirement-friendly state where you’ll get more house for your money.
7. Cut Down on Non-Essential Expenses
Once you start looking for ways to save money, you’ll realize how much money you’ve wasted over the years. To cut back on your budget: cancel your landline phone and use only your smartphone. Stream your favorite TV programs and say good-bye to outlandish cable TV bills. Prepare home-cooked meals instead of eating out. Become a one-car family again and save on insurance, maintenance, fuel and tires. Increase your insurance deductibles. Rent pricey yard equipment like pressure washers. Install a smart thermostat to regulate house temperature. Order 90-day prescriptions to save on drug costs.
8. Volunteer
You can’t put a price on helping others—or compute the good that comes from volunteering. It boosts self-esteem, makes the world a better place and may even lead to a part-time job. Dorothy, a court-appointed special advocate (CASA) volunteer, was eventually hired by the local Boys and Girls Club. Leslie’s job as an activities coordinator for a senior citizen’s home was a direct result of her years volunteering at their weekly bingo games. Pay it forward and you just may get a payback, too.
SOURCES
- “Labor Force Participation Rate for Workers Age 75 and Older Projected to be Over 10 Percent by 2026.” Bureau of Labor Statistics, 29 May 2019, https://www.bls.gov/opub/ted/2019/labor-force-participation-rate-for-workers-age-75-and-older-projected-to-be-over-10-percent-by-2026.htm. Accessed1 December 2024.
- Williams, Geoff. “How a CD Laddering Strategy Can Elevate Your Savings.” Life and Money by Citi,117 January 2024, https://www.lifeandmoney.citi.com/money/savings/cd-ladder-strategy-for-high-interest-saving. Accessed 1 December 2024.
