Hi! Today, I have The Logic of Money who wants to help their readers stress less about their money (who doesn’t want that). They focus on money management, credit, and retirement. Today, they are going to discuss ways to make money in retirement. Enjoy these ideas about making extra money in retirement and this guest post!
Retirement is something we are all working toward.
After all, aren’t we all saving money so we can eventually enjoy the riches we have tucked away for the past few decades? So, you might be asking, “Why would anyone want a job in retirement?”
There could be any number of reasons but perhaps the biggest reason is because most people don’t have enough money saved up for retirement. Retirement is the likely biggest expense any of us will incur in our lifetime yet people neglect saving for it often until it is too late.
Investopedia states that according to a study by Fidelity the average 401(k) savings by age group is as follows:
- Age 20-29: $11,800
- Age 30-39: $42,400
- Age 40-49: $102,700
- Age 50-59: $174,100
- Age 60-69: $195,500
This may seem like a lot of money but in reality, it is quite alarming how low these numbers actually are.
In a study conducted by Charles Schwab, the average American will need $1.7 million to retire comfortably. Do you see the issue yet?
In the same study conducted by Fidelity, the average contribution rate by age group is as follows:
- Age 20-29: 7.0%
- Age 30-39: 7.8%
- Age 40-49: 8.5%
- Age 50-59: 10.1%
- Age 60-69: 11.2%
Most experts recommend that you should save at least 15% of your income for retirement.
As you can clearly see above, most people are nowhere near that number.
Additionally, the percentage contribution should really be flipped. The earlier you start saving for retirement, the less money you will have to put away to reach your goals. If you start saving later in life, you will have to put exponentially more money into your retirement savings in order to catch up.
Here’s a quick example to illustrate the point:
Example 1: If you started investing $500 per month at the age of 25 at an 8% return until you are 65 years old, you would have invested a total of $240,000 and it would be worth $1,745,504.
Example 2: If you started investing $1,000 per month at the age of 40 at an 8% return until you are 65 years old, you would have invested a total of $300,000 and it would only be worth $951,026.
Now, I know not everyone can afford to put away 15% of their income from the start because they have student loan debt, mortgage/rent payments, families to support, etc, but the idea is to start your retirement planning early and try to put as much away as you can possibly afford. And if it really comes down to it, you may end up having to do a little extra work in retirement to keep yourself financially afloat.
So, let’s dig and answer the question, “How can I earn money after retirement?”
Best Ways to Make Extra Money In Retirement
First of all, yes, you can still earn money after retirement.
There are plenty of ways to earn money after retirement. Shortly, we will answer what business is best after retirement, retirement hobbies that make money, and work from home ideas for retired people.
This list is essential if you don’t save for retirement.
These are the best ways to make extra money in retirement.
1. Become a Teacher (or Substitute Teacher)
According to the Bureau of Labor Statics, it is projected that there will be a 7-8% increase in teaching jobs by 2026. The national median salary for a high school teacher is currently $60,320, and $57,980 for an elementary school teacher.
The great part about being a teacher is you can do it anywhere.
If you have always dreamed of moving somewhere warm down south, you still can. You can look for full-time teaching jobs near the place you want to move to. Or if you don’t want that big of a commitment, consider becoming a substitute teacher so you can spend more time enjoying the warm weather.
2. Become a Consultant
Depending on what your career was before you retired, you may be a great candidate for consulting.
Many businesses, especially newer ones, are constantly looking for advice or fresh ideas. Use your decades of experience to help new or existing businesses grow and flourish while making a little extra money.
You may even be able to negotiate a deal with your old employer to work a few days a week remotely. As long as you can continue to add value, your employer may jump at this idea because they will still get all of your creative ideas, but will be able to pay you less.
3. Look For an Administrative Assistant Role
Don’t want to have the pressure and stress of diving into a business? Maybe you can take on an administrative assistant role. Your duties could include things such as scheduling meetings, screening incoming phone calls, printing materials, making copies, or mailing documents.
You might even be able to work remotely as a virtual assistant. Doing a quick online search for these roles will give you hundreds of options.
4. Become a Real Estate Agent
Becoming a real estate agent is a pretty simple process and one of the best businesses after retirement.
It simply takes a few weeks of work that you can complete in person or online and then you will likely need to pass an exam to get your license. The great part about being a real estate agent is you get to positively impact other people’s lives by helping them find a great place to live, and you get to collect a fee on every sale or rental you arrange.
Depending on how good you are at your job and how much you work, the income potential is unlimited. You could make a few thousand dollars per year to a few hundred-thousand dollars per year.
5. Become an Interpreter or Translator
Are you bilingual or multilingual?
Become an interpreter. Interpreters can make anywhere from $30-$50 per hour on average. The more difficult the language is to learn, the more you might be able to charge.
If you can speak multiple languages, it might be time to put your skills to work and make a little extra money to boost your retirement savings.
Also, this is a skill that you can learn on your own time and become proficient at. Learn how here.
6. Become a Pet Sitter or Dog Walker
This one is a little less creative, but if you’re a pet lover, it might be the perfect fit.
It is important to remain active in retirement, and if you love dogs, being a dog walker is the perfect option. Sites like Wag! or Rover allow you to post your services online and set your own rate. You can also set your own schedule so you can walk as many dogs as you would like or have as many sleepovers with pets as you please.
7. Monetize a Your Favorite Hobby
The best thing about side-hustles is that you can choose to do whatever you want. The important thing is that you enjoy what you are doing, are good at it, and can monetize it.
If you are great at arts and crafts, then consider setting up your own shop on Etsy and selling your pieces.
If you love teaching and helping others but don’t want to spend all day in a school, do a few hours of tutoring each week.
Do you love to write, maybe try to start a blog.
The possibilities are endless. I currently have two hobbies that I am working on trying to monetize. The first is my personal finance blog The Logic of Money that I use as an outlet to write about all things personal finance related.
The second, and one that could be a great opportunity for you sports-loving retirees, is collecting/investing in sports cards. Sports cards have become extremely popular in the past few years and are selling for a lot of money on sites like Ebay depending on the card. I am monetizing this hobby by buying and selling sports cards of popular players and sharing my experience and card collection on my site The Card Report.
The important thing is to make sure it is something you enjoy. You should be enjoying your golden years so you want to make sure everything you are doing is bringing you happiness in some way, shape, or form.
More Make Money Ideas:
- 20 Genius Ways on How to Make Money Fast
- Best Gig Economy Jobs – 8 Quick, Easy Ways to Make Extra Cash
- What to Do with Old Stuff (& Make Money)
Can you Still Earn Money After Retirement?
Retirement will probably be the biggest expense you face in your lifetime.
It is important to begin preparing for it early. Don’t fall into the trap of putting off saving for retirement.
If you save early and often, you may even be able to avoid having to find a job in retirement and can simply spend your time on the beach sipping cocktails. Or you can work because you choose to earn extra money.
The choice is yours.
Which retirement hobbies could you make money with?
Austin is the founder of The Logic of Money and has a passion for finance and helping others. He studied finance, investments, and banking as well as real estate and urban land economics in college. He hopes that he can share his knowledge and tips with others to help make personal finance less stressful for everyone. Follow him on Twitter, Pinterest, and Facebook!