Supplementing Your Retirement Income: Tips for Senior Citizens

Retirement arrives with the promise of a laid-back life ahead, but it also pushes you towards uncertainty – will your pension plan be enough to match the ever-increasing cost of living? A great way to tackle this is to get a supplement to your retirement income. There are quite a few ways to go about it. While some of them require great effort and investment, some don’t require anything at all.

Below are five ways you can supplement your retirement income.

Teach

With years of experience under your belt, the easiest way to supplement your retirement income is to become a teacher. After passing a few tests and obtaining a license, you can begin teaching in your state – in schools or in colleges. Based on your education and grasp of the subject, you can either become a permanent teacher or a substitute.

If you don’t want to teach at a school or college, you can also try teaching students online. Various online teaching platforms regularly collect materials from teachers and make them available to students. The materials are usually pre-recorded, so you have to prepare the script and shoot them.

You can also upload these videos on YouTube and teach through a particular channel. It might take some time to grow, but the results might be worth it.

Start a business

Retirement comes with savings and experience – and you require both for starting a business. If you’ve always wanted to have your own venture, this might be the right time to go for it.

Pick an area you’re passionate about, and design a product or service around it. If it seems too hard to achieve, you can open a retail shop. Alternatively, you can start a restaurant or cloud kitchen, bake and sell cakes, or knit and make handicraft items. You can also pick a service such as cleaning, gardening, babysitting, or pet sitting. Make sure that the product or service is in demand in your locality and creates enough value for your customers.

You can also start an online store to cut costs associated with a brick-and-mortar shop or invest in drop shipping to remove the hassle of maintaining an inventory.

Work as a freelance Consultant

Another way to utilize the experience obtained through your profession is to open a consultancy. New and small businesses are always looking for consultants to help them sort their operations, generate more leads, and get more sales – and this might be your opportunity to help them achieve their goals. They are usually willing to pay a significant price for these services, making it ideal for a supplement income for retirees.

As an alternative to having a physical consultancy, you can start working as a freelance consultant. It gives you enough freedom to work from home. If you’re unsure about how to land your first client, you can always sign up on marketplaces like Upwork and Fiverr for better exposure.

Get a reverse mortgage

If you own a house, you can use it to supplement your income by getting a reverse mortgage against it. Check with your local authority to determine whether you qualify for it. The basic requirements are pretty similar in every state – you need to own a house that’s in good condition, and you must be above the age of 62 and have great health and a good life expectancy.

While all reverse mortgages might seem like a good option for tax-free income, they come with some cons as well. Research well to understand whether this will be the optimum option for you. Consult a mortgage specialist or talk to someone who’s applied for a reverse mortgage before to get a better understanding.

Invest in real estate

If you have a good amount of money in savings, you might want to invest in real estate to supplement your retirement income. It might not seem like the best option out there as you will be spending all or a major chunk of your savings to purchase the property. But after you make the purchase, you can easily earn a handsome amount from it.

If you buy a house, you can rent it out and generate a fixed income every month. You have the liberty to rent the entire house or only a floor. You can also rent it seasonally and to travelers or make it available for rent the whole year. You might also be eligible for a tax exemption based on type of rent, so you save some money there, too. Holding on to the property will also return good value, especially if you’re selling it off in a peak season. You can also pass the property down to your next generation so that they can benefit from it.

Supplementing your retirement income is not as challenging as it might seem. Options such as teaching and consulting do not require much investment from your end, and you can do it from the comfort of your home. Opening a business or starting a service might require more effort, but if you have the passion to serve the community while earning a few extra bucks, you are bound to succeed.