Supplementing your retirement income is a smart financial strategy. It will allow you to spend more money doing the things that you enjoy (like travel) or getting your home just the way you want it. Read on to find out some smart ways to boost your retirement income.
Get your money to work harder for you
Before you think about ways you can generate new income streams, it’s important to maximise the potential income streams you already have. Talk to a licensed financial planner about structuring your super so that you receive a lifetime annuity or pension rather than just letting it sit as a lump sum in your super fund. This super annuity or pension income could supplement any full or part Age Pension you may be receiving from the government.
Getting your money to work harder for you also means investing any spare cash that you may have wisely to generate more income. Interest rates have been on the rise over the past year in Australia for the first time in more than a decade, so there’s no point leaving money that you don’t need for regular expenses in a low-interest (or no-interest) everyday savings account. If you do, you’re missing out on easy, passive income.
Look to invest those surplus funds in a safe and secure term deposit instead. You can choose terms ranging from 3 months to 2 years to suit your needs. Once you’ve worked out your term deposit time frame, find the highest interest rate that’s currently on offer, and get paid monthly.
Other money-making ideas
Once you have your money working hard for you, you can also explore other ways to generate new income streams by using your skills and any spare time or resources that you have. For example, you might:
- Offer your services as a consultant or take occasional jobs in your field of expertise or experience.
- Tutor or mentor others (either online or in person).
- Rent a spare room to students if you live close to a college or university.
- Rent a spare room to an older person using the downsizing flat-share service.
- Rent your entire home when you travel overseas or interstate for a few weeks on a site like Airbnb.
- Become a part of the ‘gig’ economy where you work only when you want (such as being an Uber driver).
- Make goods to sell online on popular sites like Etsy or at local markets if you have creative skills.
- Sell all your excess stuff at a garage sale or online on eBay.
- Take up babysitting or providing after-school childcare services.
- House sit or pet sit while people in your area are away, or look for a holiday destination and offer your services through a house-sitting service like The Travelling House Sitters.
- Turn a hobby (like cooking, photography or writing) into an income stream.
- Start a hire service for things you own but don’t need all the time, like power tools or other handy gadgets that others may not have.
The bottom line
The last thing you want to do is outlive your savings, so boosting your retirement income in ways that suit your needs and lifestyle is a smart financial strategy. Your income-earning potential doesn’t have to stop in retirement. Make sure your money is working hard for you and think outside the box for ways you can earn extra income.
IMPORTANT INFORMATION: Apart from the Downsizing Senior Flatmates service, we aren’t endorsing any of the companies or services mentioned above but include them for informational purposes only.
Want to learn more about making the most of your next 30 years?
Retirement living can be the best time of your life.
We’re committed to making life better for the over 55s. Check out downsizing.com.au for more insights and great advice on living life to the fullest. We have a great range of properties for the over 55s to help you do that with like-minded people in land lease communities and retirement villages.