Aaah, retirement! After working for 40 or 50 years, it’s easy to believe that retirement will be idyllic. Sitting by the pool, playing endless rounds of golf, or spoiling the grandchildren may be the only things on your to-do list.
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But what if you find that you’re bored? Or you don’t really have quite enough money to live a life of leisure?
Here are five ways to make money in retirement that don’t involve going back to work full-time.
Turn a Passion Project Into a Money Maker
Do you have a hobby that you’re looking forward to spending more time on once you stop working? You may be able to turn it into an income stream, combining your creativity with some cash flow. Maybe you’re a woodworker and could start a side business making furniture or children’s toys. If cooking is your jam, you could start a catering business or sell your kitchen creations at a local farmer’s market. Many hobbies could easily turn into businesses.
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Share Your Professional Knowledge and Experience
You’ve gained a lot of expertise and knowledge during your working years. You may be able to call on that as a way to earn some extra income in retirement. If you’re a specialist in a certain industry, you could be well-paid as a consultant. If you were a teacher, you could probably find some students who could use you as a tutor.
The nice thing about consulting in the field you worked in is that you can name your own hours and decide how much work you want to take on. Ten hours a week instead of 40? A month off to travel or visit the kids? When you’re the boss, you set your own hours and your own prices.
Share Your Wisdom
In addition to the knowledge you’ve gained by working, you’ve also acquired some wisdom from just living. Your life experiences may have something to offer those who are younger and may be just starting out. How can you monetize your life experiences? Write a book, start a blog, become an influencer. There are lots of people on social media who are retired and offer life advice to younger people who may have missed some things while growing up.
Help Others
If you’re newly retired and still active, you may be able to earn some money by running errands for those who may no longer be able to do as much for themselves. You may have elderly friends and neighbors who need a ride to a doctor’s appointment or someone to pick up groceries. Rather than calling on their children, who may be too busy or too far away to help, they may be happy to pay you a nominal fee for helping them out.
Sell Your Stuff
You may have amassed a lot of ‘stuff’ during your working years that no longer serves you. If you have adult children, they may already be in their own home, and they don’t need many of the things that are still in their childhood home. Think carefully about the possessions you still treasure and use, and determine if you can get rid of the rest.
This is especially helpful if you’re thinking of downsizing your home in retirement. If you don’t want to move it, sell it. You’ll free up some space, make a little money, and have less to move — a win-win-win!
Working While Collecting Social Security Benefits
If you are collecting Social Security benefits and have not yet reached full retirement age (67 for those born in 1960 or later), be aware that your benefits may be reduced if you earn more than a certain amount from work.
Social Security will deduct $1 for every $2 you earn above $23,400 in 2025, if you are under full retirement age for the whole year. The threshold can change each year. In the year you reach full retirement age, Social Security will deduct $1 in benefits for every $3 you earn above $62,160. Again, this threshold can change.
Once you reach full retirement age, you’ll get your full benefit based on when you began collecting.
Here is an example.
Joe is 64 years old. He began collecting Social Security at 62, but he got bored, so he took a part-time job, for which he earns $30,000 a year. He earned $6,600 more than the $23,400 threshold, so his benefit will be reduced by $3,300 for the year. In the year he reaches full retirement age (2027), his benefit will not be reduced because he earned less than $62,160.
It’s important to be aware of these restrictions so you don’t risk losing part of your Social Security benefit because you made too much money.
The end of full-time work doesn’t have to be the end of income from work. Thinking outside the box can provide you with some extra income in retirement as well as personal satisfaction.
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This article originally appeared on GOBankingRates.com: 5 Ways To Make Money in Retirement Without Going Back To Work Full Time
