Posted by In this article, I’ll walk you through several ways to make extra money during retirement. Retirement can be a wonderful stage of life, a time to relax, pursue hobbies, and enjoy time with family. However, as I thought about my retirement planning, I realized that having some extra money could make a big difference.
Whether you want to boost your savings, fund a few luxuries, or simply stay active and engaged, finding ways to make extra money in retirement can be both financially rewarding and personally fulfilling.
Each idea offers a different balance of flexibility, income potential, and skill requirement, so you can find the perfect fit for your lifestyle.
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Ways to Make Extra Money in Retirement
Let’s dive into practical ways to supplement retirement income, covering various options for different interests and abilities.
1. Consulting or Freelancing
If you have a strong professional background in fields like finance, marketing, education, or technology, freelancing or consulting is an excellent way to generate income. Leveraging your years of expertise allows you to earn on a flexible schedule without committing to a full-time role.
How to Get Started:
- Start by reaching out to former colleagues or companies in your field that might need consulting services.
- Create a LinkedIn profile or personal website to showcase your experience.
- Consider joining freelance platforms like Upwork or Fiverr to find clients looking for your expertise.
2. Tutoring and Teaching
Another rewarding way to make extra money in retirement is by sharing knowledge through tutoring or teaching. Whether you prefer tutoring students one-on-one, teaching English online, or holding workshops on your area of expertise, this option can be both financially and emotionally rewarding.
Getting Started:
- Look into tutoring services such as Tutor.com or local after-school programs.
- For online teaching, platforms like VIPKid allow you to teach English to students abroad.
- Contact local community centers, libraries, or universities that may have openings for guest lecturers or workshop instructors.
3. Selling Crafts and Handmade Goods
If you have a knack for creating things—whether it’s woodworking, knitting, or making jewelry—you could turn your hobbies into an income stream by selling handmade goods online or at local markets. Many retirees find this to be a relaxing way to make extra money.
Where to Sell:
- Set up an Etsy store to reach a wide online audience.
- Look for local craft fairs or farmer’s markets where you can set up a booth.
- Social media platforms like Instagram or Facebook can also help you showcase and sell your creations.
4. Renting Out Space
If you have extra space in your home, renting it out can be a straightforward and passive way to generate income. Options range from long-term rentals to short-term Airbnb hosting, depending on your comfort level and local demand.
Considerations for Renting:
- Platforms like Airbnb make it easy to rent out a room or your entire property.
- If you have a larger home, consider renting out a basement, attic, or detached guest house as a longer-term rental.
- Before renting, make sure to review local regulations and assess any necessary insurance.
5. Becoming a Pet Sitter or Dog Walker
For animal lovers, pet sitting or dog walking can be a fantastic way to earn extra cash while spending time with furry friends. This job is ideal for retirees who enjoy physical activity and have a flexible schedule, as demand for pet care often peaks during weekdays and holidays.
How to Get Started:
- Use platforms like Rover or Wag! to find pet-sitting and dog-walking clients.
- Start by offering services to neighbors or friends to build a clientele and earn positive reviews.
- Ensure you’re physically able to handle dogs of various sizes if you’re interested in dog walking.
6. Investing in Dividend Stocks or Real Estate
If you have savings or investment experience, building an income stream through dividend stocks or real estate investment trusts (REITs) might be a good option. Dividend stocks provide regular income from stock profits, and REITs allow you to invest in real estate without managing property.
Steps to Invest:
- Consult with a financial advisor to ensure dividend stocks or REITs align with your retirement goals and risk tolerance.
- Research high-dividend stocks or REITs that have a history of stable payouts.
- Consider using investment platforms like Vanguard or Fidelity, which offer a variety of options for dividend-paying stocks and REITs.
7. Driving for Rideshare or Delivery Services
If you enjoy driving and prefer a flexible work schedule, driving for companies like Uber, Lyft, DoorDash, or Instacart could be a viable way to supplement your income in retirement. This option offers the advantage of choosing your hours, so you can work as much or as little as you want.
Getting Started:
- Sign up on the platform of your choice and complete the necessary background checks.
- Consider the costs of gas, car maintenance, and insurance before committing.
- Make sure you’re comfortable with technology, as these services operate via apps that require real-time tracking and navigation.
8. Taking Paid Surveys or Participating in Market Research
While it won’t make you rich, taking online surveys or participating in market research is an easy way to earn extra cash without leaving home. Many companies pay for consumer opinions on products or services, making it accessible to just about anyone.
Survey Platforms to Try:
- Popular sites like Survey Junkie, Swagbucks, and Pinecone Research offer paid surveys.
- Look for market research companies conducting focus groups, which can pay well for just a few hours of your time.
9. Becoming a Part-Time Real Estate Agent
If you’ve always been interested in real estate, becoming a part-time real estate agent in retirement could be an exciting and profitable venture. While it requires upfront time and effort to get licensed, real estate can be a fulfilling way to stay active and make substantial extra income.
How to Start:
- Check your state’s requirements for becoming a licensed real estate agent.
- Once licensed, consider working with a real estate agency that values part-time agents.
- Tap into your social network to find potential clients and market your services.
What Is the Average Social Security Check for Retirees?
As of 2022, Social Security and retirement plans made up $32,168, or 65.9% of pre-tax income.
How Much Does the Average Person Have in Retirement Savings?
As of 2022 (the most current statistics available), the mean (average) retirement savings was $334,000, per a Federal Reserve analysis. However, according to the same data, the median retirement savings in 2022 were only $86,900.
How Much Does the Average 401(k) Have at Retirement?
Vanguard’s report, “How America Saves 2024,” states that as of 2023, the median 401(k) amount for individuals 65 and older was $88,488 while the average 401(k) value was $272,588.
Can I Work Part-Time and Still Receive Social Security Benefits?
Yes, you can work part-time while receiving Social Security benefits. However, if you are below full retirement age, your benefits may be temporarily reduced based on your earnings.
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