How Can I Make Money in Retirement?

With many Americans living longer and retiring earlier, more and more people have time, health and energy to work in retirement. And this has led to a surge in retirees doing just that. So whether you need the extra cash or just want to pick up a side gig, here are four common ways to make some additional money after you already retired.

A financial advisor can help you create a financial plan for your retirement goals.

Local, Government and Nonprofit Work

Just about every community has a wealth of jobs that need doing and almost no wealth with which to pay for that work. This ranges from work in schools, such as helping to manage the library, to work in local museums or parks, and helping with local government.

This is the kind of work that can be ideal for retirees. Often work within the community is part-time and tends not to pay very well. This means that relatively few people can afford to take those jobs if they need this as their main source of income. However, if you already have a retirement account and/or Social Security benefits, then this may simply be supplemental income for you. In that case, the money can work out well and the light hours might actually be a feature not a bug.

Local work tends to involve jobs that really do need doing. Look into your area’s museums, schools, town government, nonprofits and similar organizations. They almost always need help running institutions that make the community function. You’ll give something back while putting aside some extra money in the process.

Seasonal Work

Depending on where you live, seasonal work can mean a great many things. Maybe you’re working as a desk clerk during a tourist town’s summer rush. Perhaps you’re giving tours in a New England village’s fall high season. If you’re in a college town, every spring commencement means a community full of hoteliers and restaurants need additional workers. Or you may work retail during November and December’s Christmas shopping just about anywhere.

The advantage to seasonal work is that it’s both easy to get and temporary. You generally don’t need much of a background for these jobs, so they’re a good fit for someone who may have been out of the workforce for a while. And you’ll only be at it for a few months, which can be great if you want some extra money but aren’t ready to completely come out of retirement.

The disadvantage can be physical. A lot of seasonal work tends to focus on the retail, service and hospitality industries, and these can involve a lot of running around. Don’t take a job that’s going to wipe you out by the end of the first week, and don’t be afraid to ask for something behind the counter. Most employers will be happy to accept any help they can get.

Lyft/Uber Driver

Driving a rideshare can work specifically for retirees who are looking to supplement their income. As a full time job, driving for a rideshare tends to be poorly compensated, grueling work. For someone who wants to step in and out, though, it can be an excellent source of side money. You can turn the app on and off whenever you want, get to socialize with your passengers, and can use a car that you most likely already own. You won’t be on your feet and, and while driving for hours on end can get exhausting, you’re free to simply go home whenever you feel like it.

One thing to note: Driving for a rideshares can come with high expenses in gas and tolls. Pay can also be low, and depending on how much you want to ear, hours can be long. But for retirees just looking to add some side money, this job may work out well.

Tutoring and Test Preparation

There are many ways to look into tutoring and teaching as a field. You can explore remote work opportunities, such as online classes and tutoring. You can try teaching English online or as a second language. You can even see about getting hired as a teacher at a school or university.

This is a common recommendation for retirees, however, many of those positions are difficult to get if you don’t already have a background in teaching. Remote work opportunities, such as online tutoring, may also pay poorly, if at all.

But teaching in some capacity can be an excellent way for retirees to engage with students on an intellectual level and make money. If you’re interested in tutoring students in foreign languages, you may want to look into getting a certification. You can also look for other opportunities through these education resources:

Local School Tutoring

Approach the schools in your local district about work as a tutor. Many of them need people who can offer students extra help and they may hire qualified tutors to do it. You generally don’t need a teaching degree to do this, but you may need specific skills or a reason why you can tutor in specific subjects.

Test Preparation

Test preparation classes almost always need teachers. This is a major industry for part-time work and most require no specific degrees or certification to apply. You learn the test and how to teach it from the test prep center, so the core skill is just an ability to teach. This is a job that works around students’ schedules, which means it’s typically part-time on nights and weekends. Depending on the kind of work you’re looking for, that might be perfect.

What You Should Know About Social Security Benefits

The full retirement age is currently 67 for anyone born after January 2, 1960. After your full retirement age, you can work and earn money with no impact on your Social Security benefits.

If you are collecting Social Security benefits and are younger than your full retirement age, then the Social Security Administration puts a cap on how much you can make while still collecting full benefits. Above this cap, the SSA temporarily withholds your benefits on a pro-rata basis depending on how much you earned.

Both the cap and the reduction change periodically. At time of writing, if you are younger than your full retirement age for all of 2022 the cap is $19,560. The Social Security Administration then reduces your benefits by $1 for every $2 you earn above the cap. If you reach full retirement age in 2022, the cap is $51,960. The Social Security Administration then reduces your benefits by $1 for every $3 you earn above the cap.

Once you reach full retirement age you will receive your full Social Security benefits. The SSA also increases your benefits based on the amount that they withheld while you worked, meaning that you don’t lose this money permanently.

Bottom Line

How you make money in retirement depends a lot on your specific needs. But if you’re looking for supplemental income, these four options might be just what you need.

Tips for Retirement Planning

• Making money in retirement has become a major topic, and we’re not nearly done yet. Read on for more ideas on how to earn income after you’ve finished work.

• A financial advisor can help you create a financial plan for your retirement preferences. SmartAsset’s free tool matches you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Photo credit: ©iStock.com/ferrantraite, ©iStock.com/dmphoto, ©iStock.com/blackCAT

The post Four Ways to Make Money in Retirement appeared first on SmartAsset Blog.