Saving enough for retirement is difficult and will get much more so in the future if traditional pensions continue to become rare and personal savings rates remain low. If you are unable to save more of your current salary for retirement, a side income is a great way to boost your retirement security. You could save some of these extra earnings for retirement or even continue the part-time venture during your retirement years. Here are some side income ideas for retirement.
Rental properties. The housing market is still quite depressed and there are many opportunities to acquire a rental property. If you are working full time, have good credit, and have some savings, you may be able to get a mortgage for a rental property. Conversely, if you wait until you retire and no longer have a regular job, it might be too late and the bank could refuse to give you a loan. You can hire a property manager to run your rental properties if you don’t want to deal with tenants and repairs.
Online income. It doesn't take much of a financial commitment to start an online venture, but it does take a considerable amount of time and effort. You can start a blog or an information site and make a little money from advertising. You could also take online surveys, open an eBay store, sell your photographs, become a freelance writer, or engage in peer to peer lending.
If you are nearing retirement and want to stretch your savings, consider creating these or other additional income streams. There are many ways to make some money on the side and it will help tremendously when you leave your day job.
It often takes time to gain proficiency with making a side income, but you can research and work on most of these ventures during your off hours from a full time job. Look to your hobbies and interests and find a way to generate some income while having fun. It will keep your retirement years interesting and stretch out your retirement savings. Even a small side income of $500 per month will make a huge difference during retirement.
Joe Udo is planning an exit strategy from his corporate job by reducing expenses and increasing passive income. He blogs about his journey to early retirement at Retire by 40.