For some, retirement is as a time to relax and take life easy. Others see retirement as the perfect time for travel, learning new activities or a sport, developing a hobby or spending quality time with family.
But what if your retirement income doesn’t support the things you want to do, or maybe you’re not ready to slow down and feel you want to create additional income by doing something new.
Whether you are seeking ways to supplement your pension or simply want to enjoy a few of life’s luxuries, here are some practical ways to boost your income in later life.
Pension and savings review
Before considering new ways to make money, its worth assessing your current situation.
- Are you receiving all the pension benefits you are entitled to?
- Is it possible you have lost track of a pension pot over the years?
- Is your pension working well for you? What about pension credit?
- If you have savings, are they generating the maximum amount of interest for you?
- Would investing in a diversified portfolio generate more income, or would you consider the risk too great?
To review your pension options or look at possible investments, it could be worth speaking to an independent financial adviser. You will pay for the advice you receive however depending on your situation, if the result is an increase in pension income, it may be money well spent.
You can search for independent advisers at Unbiased or alternatively get initial free advice from Pension Wise, provided by the government backed MoneyHelper service.
To trace any lost pensions, try the government’s pension tracking service. Or you can read more on pension credit if you think you may be entitled to additional financial help.
Cut costs
In addition to reviewing what you already have to make sure it’s working for you, it can also help to look at your expenditure to see if you can cut costs. Saving money on your council tax, energy bills and water bills all adds up, plus there may be other benefits you are entitled to such as attendance allowance or housing benefit.
In addition, if you are happy to make a few lifetstyle changes and reduce any unnecessary spending, you can effectively increase the amount of cash you have available.
Consider you work options
If you want to increase your retirement income you could continue to work either full or part-time or depending on your profession, go freelance and offer consulting services.
Alternatively, if you have a specific skill such as a language, playing a musical instrument or teaching experience, you may be in a position to offer tutoring services.
Freelancing a few days a week may seem like a good option if you are not ready to fully retire but in addition to the work, you will need to market yourself and manage any income you make. For more information on the benefits of consulting, Freelancer News could help.
There are also many sites offering further information on tutoring services, especially for retired teachers seeking additional work.
Turn a hobby into work
If you have a particular talent such as painting, photography or making things, you could turn it into a business by selling your work either through local shops and businesses or websites such as Etsy.
Alternatively if you have green fingers or you’re a natural with DIY, you could offer your services as a gardener or handyman.
Rent out a space
If you are happy to share your property, you could rent a room on a long term or ad hoc basis or even offer B&B services. In addition to boosting your income, renting a room can be a good way of socialising and meeting new people.
Alternatively, if you have a garage or parking space, you may want to consider renting that, especially as parking is a premium in many cities these days.
Websites such as Airbnb and SpareRoom can help if you are considering renting out a space in your property and the government’s rent a room scheme explains how you can earn up to £7,500 tax free renting out furnished accommodation to lodgers.
If you’re considering renting out your driveway, websites like JustPark and Park on my Drive may help.
Downsize
If you are happy to move property, then downsizing could be a way of generating more money. You will need to take into account moving costs including solicitors and estate agents’ fees to ensure its cost effective and provides the money you need.
Also, you may need to consider whether you are happy with the possibility of moving to another area to find a smaller property at the right price.
Release equity with a lifetime mortgage
An equity release mortgage lets you access the money tied up in your home without the need to move or make monthly repayments.
This could be a useful way to generate additional funds however keep in mind that as the loan is repaid from the sale of your property once you die or move into permanent care, it will reduce the value of your estate.
Offer pet sitting services
Offering pet sitting, dog walking or even just home sitting services will get you out and about and increase your income. Whilst the pay for pet sitting may be modest, the fact you are out of your house will cut down on your household bills.
As long as you like animals, pet sitting and dog walking offers so many benefits.
For more information on how this could work for you, websites like Homesitters may help.
Market research and surveys
If you want to get paid for having an opinion, then market research could be one option for raising funds. Money Saving Expert Martin Lewis has written an excellent article detailing how you can earn between £50 to £200 through certain market research focus groups.
There is a limit to how many groups you can attend (typically one every six months) so your earning potential is limited but as they say ‘every little helps’.
For more information on the top market research companies, and Martin Lewis’ tips on what to look out for, visit the MoneySavingExpert website.
Sell items online
If over the years you have become a bit of a hoarder, selling items online could be a way of having a clear out at the same time as earning some extra cash. Websites like ebay, Amazon, Preloved and Gumtree are just a few of the options available.
Who knows, if you develop an eye for a bargain in the process, you may end on the next antiques roadshow.
Summary
These are just a few ideas for raising cash in your retirement years. The right solution for you will depend on your financial requirements, personal circumstances, health and lifestyle preferences. Plus, you will need to consider your overall retirement plan and balance the potential income against factors such as effort, risk and your own enjoyment.