How to Earn More Money in Retirement

by Junior Boomer on May 25, 2011

It is crucial to have enough money to live your life and dream your dreams once you retire.

Before you retire there are steps you can take to insure that you earn the maximum amount of money during retirement.

Start Saving.

Save more and do it now. The number one way to add to your retirement plan is to contribute more money as early as you can. Even a small savings increase will add up significantly over time. And time is a key factor if you want your interest to work for you.

Open a Traditional or Roth Individual Retirement Account

These are ways to invest your money on a tax-deferred basis. Be sure to check if any restrictions are imposed upon the investments.

Employer Matching Programs

While you are still gainfully employed, be sure to take advantage of programs offered by your employer such as those where they match your donations to a 401K. Often employers will match, dollar for dollar, up to 6% of your income. And why would you ever turn down free money?

Life Insurance

Often a permanent, or whole, life insurance policy is an effective way to supplement your retirement. Most permanent life insurance policies can act as a kind of savings account. Usually these savings can be tapped into without canceling your policy.

Wait to Retire

Every year you stay employed you are guaranteeing yourself a larger percentage of Social Security.

Once you are retired, you still may be interested in earning money. There are many simple ways to increase your retirement funds.

Sell Belongings

Now that you have more time, go through all of your things. What do you want to keep and what can you part with? Is there anything that someone else would want, even pay money for? With CraigsList and Ebay and other online selling opportunites, there has never been a better time to sell your stuff!

Investigate Smart Financial Moves

See if you can get a higher interest rate for your investments. Many banks will bend over backwards to get your business.

Get a Job

This may sound like strange advice to a retiree. But, truthfully, retirees often find that they are bored and are looking for something to do with their wealth of time. While striving to fill up your days, why not look for ways to fill up your wallet as well? Think about what you like to do and what you are good at. Consider things you have always wanted to try.

  • Market your skills: Are you a good teacher? Do you possess a skill that you would like to share with others?
  • Is there a hobby you have or have always wanted to take up? For example, do you like gardening? Participate in your local farmers’ market or look into part time work at a nearby garden center.
  • Are you good with animals? Become a dog walker or take care of pets when their owners are away.
  • Do you like children? Many families are desperate for quality childcare provided by a reliable person.

However you decide to spend your retirement, it is important to have enough money to spend and to spend your retirement the way you always dreamed.

Creative Commons License photo credit: pfala

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