Four smart ways to make money in retirement

SmartAsset: Four Ways to Earn Money in Retirement

SmartAsset: Four Ways to Earn Money in Retirement

As many Americans live longer and retire earlier, more people have the time, health and energy to work in retirement. And it’s led to an increase in the number of retirees doing just that. So whether you need the extra money or just want to catch a side gig, here are four common ways to earn extra money after you retire.

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

Local, government and non-profit work

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

This is the kind of job that can be ideal for retirees. Often the work within the community is part-time and tends not to be very well paid. This means that relatively few people can afford to take these jobs if they need them as their main source of income. However, if you already have a retirement account and/or social security benefits, this may just be extra income for you. In this case, money may work well and light hours could actually be a feature and not a bug.

Local work tends to involve jobs that really need to be done. Find out about museums, schools, municipal government, nonprofits, and similar organizations in your area. They almost always need help managing the institutions that make the community work. You’ll be giving something back while setting aside extra money in the process.

Seasonal work

SmartAsset: Four Ways to Earn Money in Retirement

SmartAsset: Four Ways to Earn Money in Retirement

Depending on where you live, seasonal work can mean a lot of things. Perhaps you work as a receptionist during a busy summer in a tourist town. Perhaps you organize guided tours during the peak fall season of a New England village. If you’re in a college town, every start of spring means a community full of hoteliers and restaurants needs extra workers. Or you can work in retail during November and December Christmas shopping just about anywhere.

The advantage of seasonal work is that it is both easy to obtain and temporary. You don’t usually need a lot of experience for these jobs, so they’re great for someone who may have been out of the workforce for a while. And you’ll only be there for a few months, which can be great if you want a little extra cash but aren’t ready to fully come out of retirement.

The downside can be physical. Much seasonal work tends to be in the retail, service and hospitality sectors, and these can involve a lot of travel. Don’t take a job that will wipe you out at 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 carpool can work specifically for retirees looking to supplement their income. As a full-time job, driving for a rideshare tends to be grueling, low-paying work. For someone who wants to get in and out, however, it can be a great source of side money. You can turn the app on and off whenever you want, socialize with your passengers, and use a car you probably already own. You won’t be on your feet, and while driving for hours can get exhausting, you’re free to just go home whenever you feel like it.

One thing to note: Driving for a carpool can lead to high gas and toll expenses. The pay can also be low, and depending on how much you want to earn, the hours can be long. But for retirees who are just looking to add some cash aside, this job can work well.

Tutoring and test preparation

SmartAsset: Four Ways to Earn Money in Retirement

SmartAsset: Four Ways to Earn Money in Retirement

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

This is a common recommendation for retirees, however, many of these positions are difficult to obtain unless you already have a teaching background. Remote work opportunities, such as online tutoring, can also pay poorly, if at all.

But teaching in some capacity can be a great way for retirees to engage with students on an intellectual level and earn money. If you are interested in tutoring foreign language students, you might want to consider getting certified. You can also research other opportunities through these educational resources:

Local school tutoring

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

Preparing for the test

Test prep classes almost always need teachers. This is a major industry for part-time work and most do not require any specific degree or certification to apply. You learn the test and how to teach it from the test prep center, so the basic skill is simply an ability to teach. This is a student-scheduled job, which means it is usually part-time on nights and weekends. Depending on the type of work you are looking for, this could be perfect.

What you need to know about Social Security benefits

Full retirement age is currently 67 for anyone born after January 2, 1960. After full retirement age, you can work and earn without impacting your retirement benefits. social Security.

If you are collecting Social Security benefits and have not reached full retirement age, the Social Security Administration limits the amount you can earn while collecting full benefits. Above this limit, SSA temporarily withholds your benefits on a pro-rated basis based on your earnings.

The cap and discount change periodically. At the time of writing, if you are below 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 by the amount they withheld while you were working, which means you don’t lose that money permanently.


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

Retirement Planning Tips

  • Earning money in retirement has become a major topic, and we’re not done yet. Read on for more ideas on how to earn income after you finish working.

  • A financial advisor can help you create a financial plan based on your retirement preferences. SmartAsset’s free tool connects you with up to three financial advisors in your area, and you can interview your matching advisors for free to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, start now.

Photo credit: ©, ©, ©

The post Four ways to earn money in retirement appeared first on the SmartAsset blog.

Leave a Reply