Many people look forward to a happy retirement after many years of hard work. While diligently planning your retirement can leave you with a substantial sum, a UK study suggests that the average pension pot may not be enough to live a comfortable retirement. Are you having trouble making ends meet or fear you might in the future? Here are four ways to supplement your retirement income.
- Get a job
Many consider retirement a phase of life in which employment is no longer an option. But this is an excellent moment to find work, not simply for financial reasons. Many seniors experience restlessness, especially when switching from a full-time job to an unending succession of unstructured days. Working after retirement can be a terrific way to supplement your income and keep yourself active. Various options are available if you want to work in retirement. If you loved your previous employment, consider consulting in that sector. You can also contact your previous company if they wouldn’t mind engaging you on a contract basis.
- Become a landlord
If you own a home while retired, you can transform it into an income stream if you don’t mind becoming a landlord. You have many alternatives in this regard. For instance, you can locate a full-time renter and earn monthly rental revenue or lease out your property periodically. Of course, the former option could be more realistic if you could close off a part of your property, like a finished basement or garage with its own door and separated from the rest of the home. Consider renting your property on an as-needed basis if you don’t want a full-time renter. Many platforms, including Airbnb, make it simple to get seasonal tenants. While you will pay a fee to use one of these sites, they are wonderful tools for finding renters that do not need you to invest a lot of time or money in advertising.
- Utilise your life insurance policy
When you buy permanent life insurance, you will often have access to your policy’s cash value through a policy loan or payout for emergencies, retirement income, and other purposes. Some forms of life insurance, like permanent life insurance, accumulate cash value over time and can be used to augment retirement income. You can access your accrued funds without the limitations other investments may impose. Many life insurance companies offer this policy, and you can discuss your options in detail.
- Set up a reserve mortgage
Image CreditReverse mortgages can be a terrific way for retired homeowners to make extra cash. As the name implies, they are the opposite of standard mortgages in that banks pay homeowners monthly rather than the other way around. Homeowners do not sell their homes this way, but the bank gains equity in residence in question. However, consider making reverse mortgages your last option since it is frequently expensive, and in most circumstances, the retiree’s heirs cannot inherit the property. You want to carefully think through this option to ensure you make a sound decision.