Retirement is being redefined by baby boomers. The idea of collecting the proverbial gold watch and then leaving work for a carefree existence is no longer viable for many retirees. AARP reports that the majority of U.S. workers plan to continue working after they officially retire with 41% seeking part-time employment and 14% looking for full-time employment.
Related: Passions That Pay: Turning Hobbies Into Money-Making Machines
One of the main reasons cited by boomers for continuing to work is a lack of savings. While many seniors want to slow down a bit to escape the grind of a full-time corporate job, supplemental income opportunities such as passive income, consulting, gig jobs, self-employment, and part-time jobs offer a bridge to a more relaxed lifestyle with more flexible hours.
Below are some proven ways baby boomers can earn supplemental income.
Start a Small Business
Few people would argue that starting a new business takes a lot of time and energy. For some retirees, that is the last thing they want to sign up for after decades of hard work. Conversely, there are retirees who have always wanted to start a business but resisted the idea due to security concerns and family obligations.
A few examples of small businesses that retirees consider are listed below.
- Make things to sell on Etsy
- Start a tax or bookkeeping service
- Tutoring
- Pet care
- Buy a franchise
- Become a real estate agent
- Financial adviser
Become a Consultant
A proven strategy for leveraging your expertise and network as a boomer is to start consulting in the field of your expertise. There is always a shortage of experts in any given industry and employers will often jump at the chance to retain your services on your terms as a contractor.
The reason so many retirees decide to consult is because it allows them to accept the assignments they want and to reject others.
In terms of income potential, consulting is a high-paid profession. The Job Network reports that Payscale.com estimates $73,512 is the average salary paid to consultants annually.
Seniors interested in pursuing consulting are advised to set up a few clients on the side before quitting their job as a way to test the waters. Some fields offer more fertile ground than others for consulting professionals.
Pursue Passive Income Opportunities
Much has been written about passive income. Who doesn’t love the idea of making money without lifting a finger? The problem with this money-making venture is that there are far too many “pie in the sky” scams out there to take many of the promises seriously.
The good news is that there are several legitimate ways to earn a passive income working less than 10 hours or so a month if you know where to look.
Become a Peer-to-Peer (P2P) Lender
This type of lending opportunity provides average people with the same interest-earning opportunities as banks. MoneyTalkNews quotes Clark.com as saying, “P2P investments can provide solid returns that are really hard to beat.”
U.S. News & World Report ranks the top six P2P lenders below as the best places to get started as an investor.
- Upstart
- Kiva
- LendingClub
- Peerform
- Prosper
- Funding Circle
Kiva and Prosper open the door for investors who want to invest for as little as $25. This means that anybody can afford to reap the benefits that were once limited to institutional investors with deep pockets.
As is true with any loan, there is always the possibility of default. That’s why many advisers suggest spreading your risk out over several borrowers rather than investing a large chunk of cash with one or two.
Rent Out Your Assets
There is currently a list of companies dedicated to helping you rent out your possessions to others. This fact makes it possible to earn a passive income off of the things you own.
Below are some assets that are commonly rented out to others via dedicated sites.
- Spare bedroom
- Car
- Boat
- RV
- Truck
- Camera Equipment
- Garage
For more information about how to get started earning money through personal rentals, check out the sites below.
- Airbnb
- HomeAway
- VRBO
- RVshare
- Boatsetter
- Turo
- ShareGrid
- Spinlister
Explore Gig Opportunities and Freelancing
Money reports that freelancing has become commonplace. Seniors who are gifted and enjoy writing, graphic design, video editing and translation are in high-demand. While you typically earn more money if you find your own clients via networking, that doesn’t mean you can’t earn some serious supplemental income by using freelance platforms designed to connect freelance talent with paying clients.
TechRadar ranks the top 8 freelance platforms as listed below:
1. Toptal
2. Guru
3. Upwork
4. Freelancer.com
5. People Per Hour
6. Aquent
7. 99designs
8. Solidgigs
Get a Part-time Job
Not everyone wants the responsibilities associated with consulting, entrepreneurial pursuits or professional freelance work. Baby boomers might be more open to a low-stress, part-time job doing something they enjoy.
AARP reports that 19.1% of the part-time workforce is over 55 years old. That fact should reassure baby boomers that they are highly-sought after in spite of their advanced years.
Some of the most popular part-time opportunities are:
- Bookkeeper
- Dental Hygienist
- Office Manager
- Registered Nurse
- Secretary
- Licensed Practical Nurse (LPN)
- Home Health Aide
- Tutor
- Merchandise Displayer
- Housekeeper
- Sales Associate
Conclusion
There are a variety of ways to supplement your retirement income. Baby boomers are in a unique position to lead an exciting retirement and fruitful lifestyle on their terms.