6 Ways Retirees Living on Social Security Can Create an Additional Income Stream
Written by
Nicole Spector
Edited by
Gary Dudak
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Maybe you carefully saved for your retirement for decades leading up to it. Maybe you fell behind and are now feeling the pressure to cut costs wherever possible. Maybe you’re getting by only on Social Security.
No matter where you stand financially in your retirement, you may be wanting more money. After all, living on a fixed income can be stressful, especially if you want to do a lot of traveling in your golden years.
GOBankingRates spoke with financial experts to learn about sixways retirees can create an additional income stream.
Cash In on Your Hobbies
Have you taken up or even mastered a hobby in retirement? Think about ways you can profit off it.
“Whether it’s crafting, photography or gardening, selling products or services related to their hobbies can be both fulfilling and profitable,” said Chad Gammon, CFP, owner of Custom Fit Financial.
And you needn’t go all out trying to make a mad profit right away. “Starting small allows retirees to test the market, and as they gain confidence, they can gradually expand their efforts,” Gammon said.
Rent Out a Room
If you’re an empty nester who won’t be downsizing in retirement, you can create an additional income stream by renting out a room in your home.
“This can be especially beneficial if you live in a desirable location, such as near a college, hospital or urban center,” Gammon said.
Invest in Income-Generating Assets
Erika Kullberg, attorney and personal finance expert who founded Erika.com, suggested investing your savings into other income-generating assets that will be profitable over time. “If you feel comfortable investing in the stock market (or hiring someone else to do so), building a portfolio of dividend-paying stocks can be a reliable source of income,” she said.
Kullberg added, “Real estate investment, such as purchasing a property that you then sublet through services such as Airbnb, can also be an option (perhaps you’re one of the lucky individuals who purchased a house years ago in an area that has become much more expensive in the past decade).”
Put Savings in CD Accounts or Bonds
If you’re not in a rush to collect a profit, you should consider putting your savings in a CD account. This is a great way to make your money earn money without doing a thing but waiting out the term. Same goes with bonds.
“CDs and bonds are worth considering for generating additional income during retirement,” said Michael Collins, CFA, founder and CEO of WinCap Financial. “CDs are a type of savings account that offers a fixed interest rate and terms ranging from a few months to several years. Bonds, on the other hand, are loans made by investors to companies or governments with the promise of regular interest payments. Both options can provide retirees with steady interest payouts without risking their Social Security benefits.”
Sell Stuff You No Longer Need
Do you have any vintage collectibles stashed away, or perhaps a second car you just don’t find yourself using much now that you’ve bid adieu to the commuting life? Sell, sell, sell!
“This option not only provides income but also helps declutter your living space,” Gammon said. “You can sell items through online marketplaces like eBay or at local consignment shops.”
Participate in Clinical Trials or Focus Groups
Retirees looking to build out an additional income stream can participate in clinical trials or focus groups, which often offer compensation for your time and input.
“These opportunities can vary from medical research studies to consumer product testing,” Gammon said. “While this option requires careful consideration of the risks and benefits, it can be an easy way to earn extra money with minimal time commitment.”
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