Practical tips for seniors who want to supplement their retirement income

Personal finance contributor Christopher Liew offers advice for seniors looking to supplement their retirement income (photo by RDNE Stock project)

Are you retired and looking for some ideas to help make some extra money? Even if you’re not fully retired yet, you may be thinking ahead and brainstorming about what you’ll do when the day finally comes.

Some retirees are looking to supplement their income so they can improve their quality of life, while others just want to stay active and don’t like the idea of stopping work altogether.

Whatever your reasons may be for wanting to earn more during your retirement, I’ll share some tips below to help you earn more and give you some good ideas you can use as a springboard to help you figure out the best path to take.

Supplementing your retirement income is a smart idea: here’s why

The average retirement age for Canadians in 2023 was 65.1, according to Statistics Canada. That number has been slowly but steadily growing since 1998 when the average retiree was 60.8 years old.

As a retiree, you may be able to take advantage of several different forms of retirement income, such as:

For some retirees, their retirement income alone is enough to support their quality of life and even have a little extra leftover for vacations, cruises, and other discretionary spending.

On the other hand, some retirees feel they could benefit from additional income.

Whichever group you fall into, supplementing your retirement income can have several benefits:

I’ve met quite a few people who retired, took a year to themselves, and then went right back to work after retiring, simply because they were bored of sitting around all day.

Practical tips to manage your supplemental income

If you do decide to start working to earn supplemental retirement income, here are some practical tips to help you maintain a good work-life balance so that you can continue to enjoy your retirement.

1. Do something that you enjoy

Many people spend the majority of their careers working because they need to, not because they want to. Bills must be paid, and so many of us do what’s necessary to keep the money flowing in -- even if we don’t particularly enjoy what we do.

If you decide to work as a retiree, I suggest doing something that you enjoy for a change. You don’t want to be in your sixties and seventies waking up and dreading going to work. Find a job or income source that makes you happy.

2. Be willing to learn and try new things

One of the best reasons to pick up a part-time job or start a business as a retiree is that it’s your chance to try something new and scratch and scratch the 'itch' you may have always had.

Perhaps you’ve always wondered what it would be like to build bicycles, become a tour guide, or become a barista. If you’re already receiving retirement income, there’s not as much pressure to pay the bills as there was in your younger life, so retirement is the perfect time to try that thing you’ve always been curious about.

3. Work at a sustainable pace

A number of studies have shown that stress is one of the largest contributors to aging. If you’re like most retirees who want to stretch their golden years as long as possible, you don’t want to burn yourself working at a pace that you can’t handle.

When balanced right, working while retired can keep you active, sharp, and young. But if you tip the balance of the scale and start overworking, you can strain your body and mind, and end up aging even quicker.

Ideas for supplementing retirement income

Not sure where to start? Here are a few ideas for supplementing retirement income. Use them as a springboard to help with your own brainstorming.

Part-time in the food and beverage industry

If you’re looking for part-time hours, the food and beverage industry can be a good place to try. Waiting tables, serving coffee, becoming a wine sommelier, or serving as a host for a restaurant you enjoy can be a great way to earn extra income.

Youth outreach and education

One principal has always stood the test of time -- the younger generation often needs guidance and support from previous generations. If you do a bit of research, you’ll likely be able to find charity groups and organizations that help with youth outreach to underprivileged kids and teens.

This can be a great way for you to share the wisdom you’ve learned over the years, earn some extra income, and make a real difference in the lives of the younger generation.

Sell your art and crafts

Retirement is the best time to become an artist or really start taking your craft (whatever it is) seriously. Whether you’re a painter, sculptor, basket weaver, woodworker -- you name it -- once you feel confident in your creations, you can start a small business selling them at local events, open up a small gallery, or try selling your arts and crafts online through a platform like Etsy.

Invest in a rental property

One of the most common ways to earn extra income during retirement is to invest in a rental property. You can go several ways here, including:

Start planning before you retire

It always pays to be prepared. If you’ve yet to retire, then now is the best time to start thinking ahead and making plans for what you’ll do once you retire. Not only will this set you up for success in your post-retirement venture, but it will also give you a solid goal to look forward to when you retire.

Looking for more tips on retirement? Here are some of the worst retirement mistakes to avoid.

Christopher Liew is a CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers on Blueprint Financial.

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