9 Ways People Can Become Richer After They Retire

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If you think retirement is the end of building wealth, then you’ll be surprised to learn that there are actually several ways people can become richer after they retire. Some of these methods require an upfront investment, like purchasing rental properties. Others simply require some patience and long-term planning.

Whatever the case may be, here are some ways you can continue to build wealth after retiring, according to experts.

Delay Social Security

While you can start claiming Social Security as soon as you turn 62, you might want to hold off on collecting it for a few years — up to the age of 70, if you can. That way, you’ll get the maximum benefit possible and have additional time to earn more money.

“Consider delaying claiming Social Security benefits, if possible,” said Emma Davidson, an experienced financial advisor and high-risk payment consultant with eMerchant Authority. “By postponing benefits beyond the full retirement age, individuals can receive higher monthly payments. This can significantly boost income during retirement.”

Purchase Rental Properties

Another way to become richer after retirement is to rent out properties, according to Adam Garcia, a finance and investing expert with The Stock Dork.

A good return on investment for a rental property is somewhere between 8% and 12%. However, you’ll need to calculate things like property taxes, insurance, maintenance and property management fees. Your actual profits will be your income minus all of these expenses.

Another option is to rent out your own property — like a spare room or a mother-in-law suite on your land. Doing this can provide you ongoing cash flow without increasing your overall expenses as much as purchasing additional properties can.

Take on Consulting or Part-Time Work

If your professional career left you with some highly specialized skills and knowledge, you might want to use that as a freelancer or consultant. This won’t require as much of your time as a full-time job, but it will help you continue to build wealth and give you something to do if you need it.

“Explore opportunities for part-time work, freelance gigs or consulting in your field of expertise,” said Davidson. “Generating additional income post-retirement can help boost your financial resources and keep you engaged.”

Build Passive Income Streams

Rental properties can serve as a form of passive income, especially if you have someone else managing your properties. But there are some less hands-on options to consider, too.

For example, if you have an unused storage shed or garage on your land, you could rent it out to someone who needs it. That’s extra income from something you already own and aren’t even using. You can find people who need that space on peer-to-peer storage platforms.

Another option is to write e-books or create online courses in something you’re an expert in — like gardening, carpentry or singing. Once you have these offerings, all you need to do is promote and sell them.

If you’re particularly artsy, you could always create an online shop on a site like Etsy, where you can sell your goods. And if you have a lot of valuable items — like collectibles, working electronics or albums — sitting in storage, you can always sell them on eBay or other sites.

Diversify Your Investments

“Even after retirement, continue to invest your savings wisely in a diversified portfolio that aligns with your risk tolerance and financial goals,” said Davidson.

You can either do this on your own or with a financial advisor’s help.

Your needs and financial situation will likely continue to change over the years, so reassess your portfolio every so often. You might not need to make any major adjustments, but it helps to know where you’re at and to ensure your investment strategy is working for you.

Invest in HSAs or Long-term Care Insurance

HSAs, or health savings accounts, are tax-advantaged accounts you can contribute to throughout your life — up until you become eligible for Medicare or turn 65. By prioritizing your HSA contributions, you’ll be covered in the event of significant medical expenses later on.

Along with this, look into long-term care insurance so that you’re protected on that front, too. Both of these things — the insurance and the HSA — can help protect your wealth and ensure financial stability, said Davidson.

Estate Planning

Proper estate planning, both before and after you retire, is key to generating and maintaining wealth — for you and your descendants. It’s also a good way to build wealth if you’re caring for your aging parents and expect to receive an inheritance later in life.

“Make sure your parents do their estate planning, and you may inherit a decent-sized windfall,” said Renee Fry, CEO of Gentreo. “Without estate planning, you will lose a good portion of the estate’s value to legal and court fees. An important part of estate planning is to take an inventory of all assets held so as not to have to fight over assets left out of an estate plan. Thorough planning can help reduce the time it takes to go through probate and thus call the assets your own.”

Invest in Lifelong Learning

You know what they say — you’re never too old to learn. And the more you can learn about things like financial planning, estate planning and investing, the more you can use that knowledge to your advantage.

Even after you’ve retired, it’s important to keep your knowledge relevant. That way, you can continue using what you know to build more wealth.

Keep Building Those Social Connections

Another way to build wealth after you retire is to cultivate your social connections. They won’t all lead to financial gains, but some might.

“Maintaining strong social connections in retirement is not only beneficial for emotional well-being but can also lead to greater financial wealth. Networking and staying connected with others can open up new opportunities for social activities, part-time work and even investment opportunities,” said Keisha Blair of the Holistic Wealth Podcast.

“Depending on your professional or business background,” she continued, “these connections could help you line up consultancy opportunities or public speaking engagements valued in the tens of thousands [of dollars].”

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