Creative Ways to Boost Your Retirement Income

Planning for retirement involves juggling multiple factors. Whether you’re thinking ahead to creating diverse income streams or approaching retirement and becoming more aware of rising expenses, it’s crucial to ensure your savings can support your lifestyle. Sometimes, adding more cash inflow to your retirement plan is the best way to cover monthly expenses, afford travel, or pursue other passions. Here are four creative sources of retirement income to consider.

Rent Out Your Space

If you have extra space in your home or plan to downsize, renting out a room or your entire house can provide an additional income stream. Many retirees use services like Airbnb and Vrbo to earn rental income. There are also rental platforms specifically designed to serve seniors.

If you prefer to cohabitate with another senior, the National Shared Housing Resource Center offers a directory for shared housing programs for seniors. This directory can help you find a program in your state, matching those who have space to rent with those looking for affordable housing.

Try Gig Work

If you enjoy the idea of continuing to work in retirement, taking on a part-time job or a gig can be a fulfilling way to bring in some cash. Sometimes called an encore career, this type of work allows retirees to engage in jobs they find interesting or socially fulfilling, such as working in retail, nannying, doing reception work, or other roles.

When choosing work to pursue in retirement, consider local opportunities, what you enjoy doing, or roles you’ve always been curious about but never had the chance to try. Look for gigs that not only bring in income but also add a social aspect to your life. Popular gigs include caring for pets or children, substitute teaching, tutoring, and driving for a ride-hailing service.

Invest in Dividend Stocks

Dividend stocks are shares from companies that regularly pay shareholders a portion of the company’s profits. These payouts can come on a monthly, quarterly, or annual basis, providing a stable stream of passive income. This is in addition to the regular benefits (and risks) of investing in stocks, which can appreciate and depreciate in value over time.

If you have a sum of money to invest and are interested in creating a strategy to add dividends to your retirement income, consider reaching out to a financial advisor. They can help you create a portfolio of dividend stocks with payout dates stacked to provide you with income throughout the year. They can also help you gauge your risk tolerance, pick assets that work for you, and understand the tax implications of earning income through dividends.

Downsize Your Home

Downsizing your home may not technically be a source of new income, but it can free up cash to the same end. If you’re currently shouldering mortgage payments, high property taxes, and the utility costs and other expenses of maintaining a single-family home, consider the benefits of downsizing to a smaller home or even living within a multi-family home community, such as a condo.

If downsizing is right for you, it could help you free up funds and use your home equity to add income to your retirement budget. If you’re considering this route, be sure to discuss how to make your money go furthest with a financial advisor. Lowering your housing costs can be a big win for your retirement budget, but it isn’t for everyone, so consider whether you really want to relocate before you decide to list.

The Bottom Line

Creating new streams of income through investment accounts and renting out your space can significantly boost your retirement income. Additionally, part-time or gig work can help you bring in more cash during retirement while providing an opportunity to explore something new and stay connected.

For personalized help charting your course through retirement, reach out to a financial advisor. They can help you assess where you stand with your retirement savings and strategies for adding streams of income into the mix.

At O1ne Mortgage, we understand the importance of financial security in retirement. If you’re considering downsizing your home or need advice on managing your mortgage, call us at 213-732-3074. Our team of experts is here to help you navigate your mortgage needs and ensure a comfortable and financially stable retirement.