Quick Tips for Extra Income During Retirement

Whether you’re already retired, or retirement is just around the corner, you may be looking for ways to add a few extra bucks.  Here are a few things you may want to consider:

How Much Do You Need?

Before you retire, it may be a good thing to ask yourself just how much money you will need to live on. Some things may change when you retire. You will probably save big time on the cost it takes you to travel back and forth to work, but you may spend more on another item such as heating.

You also have to take into consideration the effects of inflation. If you have an online budget calculator, it may be very easy to figure all of this out. If you find yourself coming up on the short end of the stick, where are you going to get that extra income in retirement?

Sources of Income

One very simple way to get that extra income in retirement is to get a part-time job. Nowadays the work force is composed of more and more older people. You will find that a part-time job not only makes you feel useful and productive but will supplement your retirement income very nicely.

Your Pension Plan

Are you a member of a pension plan at work? If so, then your employer should be able to tell you exactly what you will earn when you retire. Some pension plans will pay you based on your earning while you were working at that company. Still other pension plans build up a pension fund that can be used to purchase an annuity.

If you have a personal pension, then your company should tell you how much you have built up in it. Sometimes you can take some of this money as a lump sum and the rest must be used to purchase an annuity. Perhaps you have old pension into which you are not paying into anymore. You can find out what you can expect to get from those. Remember, every little bit helps!

Tax Credits, Benefits, Investments & Savings

There are also other sources of extra income in retirement that you should be aware of. You should check to see if you will be entitled to any tax credits or state benefits. You should also jog your memory and see whether you have any investments or savings that you can put towards your impending retirement.

If you happen to own your own home, you may be able to use some of the money that is tied up in your house to give you some supplemental income. This can be risky, however, so be sure to seek some professional advice about this matter first.

No matter if it be getting a part-time job, pension plans, getting an annuity or relying on investments and stocks to give you extra income in retirement you should map out your retirement strategies early enough so you will not be caught in the lurch! With a little foresight, you will not have to worry about the future.