Retirees Look for New Ways to Afford Their Retirement

As many seniors enter retirement, they’re struggling to find the means to support it. Social security remains a popular program among retirees, but too many unfortunately survive almost entirely on these benefits. In fact, about 12% of men and 15% of women rely on social security for 90% of their retirement income. For these people and others in a similar situation, having other ways to afford their retirement can be helpful to make it a little less stressful. Luckily, there are a few options that many retirees have already started turning to.

Part-Time Job

The most common way that retirees look to supplement their income during retirement is with a part-time job. While retirement allows them to stop working full-time, many don’t want to stop working entirely. Working a part-time job allows the retiree to bring in some extra income and continue to stay productive each day.

Retirees typically pursue a wide range of jobs, depending on their previous qualifications. For example, tutoring is a common job for retirees with special field knowledge or who previously worked as a teacher. Other retirees might turn to consulting, using their years of experience to help the next generation.

Other part-time jobs don’t require much experience and can benefit retirees who don’t want to continue working in their previous fields. For example, many retirees find work at places like supermarkets or as delivery drivers. With so many part-time jobs available, it’s often easy for retirees to find something that fits their desired lifestyle in retirement and that brings in some supplemental income.

Reverse Mortgages

Retirees who own a home have an option available to them that others don’t, known as reverse mortgages. With a reverse mortgage, you choose to stop paying your mortgage each month. This can add significant money back into your monthly budget, making it easier to afford the other parts of your retirement. With a reverse mortgage, you don’t start repayments until you sell the home, move away, or stop paying homeowner’s insurance. Reverse mortgages aren’t right for every retiree, making it important to conduct thorough research. A reverse mortgage calculator is a good place to start, as it can help you see how much you can save each month and what your payments will ultimately look like.

Starting a Business

Starting a business is another option for retirees. It doesn’t have to be a particularly large business, as most retirees are looking for supplemental income and don’t want another full-time job. Many retirees find success selling things online, such as artwork or hand-crafted items. Creating a shop online and selling items for customers worldwide is easy. This allows retirees to work on projects they already enjoy, while also bringing in some extra money.

Other retirees start new businesses or look for online work opportunities. For instance, some retirees start a blog or write copy for other companies. Some companies also seek a remote customer service agent, which only requires a computer. There are many ways for retirees to make an income online while providing flexibility to choose their own working hours.

Downsizing

Many retirees find that, once they stop working full-time, they no longer need to maintain the lifestyle that they once did. For instance, their children have all moved out of the family home, and they no longer need as much space. Or maybe they and their partner are no longer commuting to work daily, eliminating the need for two vehicles. In instances like this, it’s common for retirees to downsize. This includes cutting back on major expenses and moving into a smaller residence, thereby reducing their expenses. Reducing expenses has the same effect as bringing in more income, making it a popular choice for recent retirees.

Renting Out Part of Their Home

Finally, renting out the extra space is a frequent choice for those retirees remaining in their homes. Many people are looking for affordable housing, including just a bedroom. If the retiree doesn’t mind having a house guest or has a separate area within their home for guests, this can be a great way to bring in some extra income. There are challenges associated with becoming a landlord and having guests, but it’s also a passive income source that doesn’t require getting another job.