3 Ways to Generate Retirement Income
April 8, 2020 (Investorideas.com Newswire) Whatever your plans for retirement, at some point after you have left the world of work there may come a time when you need a little extra cash.
Whether you want to supplement your pension payments with some disposable income or save for a rainy day, here are few ways to generate money as a retiree.
Invest in property
If you are cautious about other types of investment which are potentially prone to volatility and uncertainty, property remains a reliable and relatively low-risk option that can deliver a regular income.
This is particularly relevant in the age of app-based vacation property rental brought about by services like Airbnb. This means you do not solely need to rely on long term rental agreements, but can instead make heftier sums from short term holiday lets.
The location and features of the property you pick will of course play a part in influencing the return you make on your investment, but with the right guidance you can put yourself in a sturdier financial position. This is especially relevant if you are worried about how far your social security will stretch and whether it will be adequate to cover living expenses further down the line.
Work part time
You may not be especially eager to jump back into a job after having just left your career behind you, but millions of retired people choose to take up part time positions in order to top up their bank account. In fact it is becoming more common at the moment and could even be beneficial from a mental health perspective, ensuring that your mind stays sharp and your memory remains intact for much longer.
There are also even more options for part time work in the digital age, so while you can take a job at a physical premises nearby, it is also just as possible to work remotely and make your expertise available to clients online.
Start saving early
The sooner you start putting money aside for retirement, the better prepared you will be when the day finally arrives. Saving a significant portion of your paycheque during the years when you are at the peak of your earning potential can be the difference between retiring on a comfortable income and having to seriously cut down on your spending after you leave work for the last time.
There are a lot of 'safe' ways to save your cash, although low interest rates may hamper your efforts if you simply choose to put all of your funds into a bank account. A Certificate of Deposit or a Laddered Bond can provide a nice pay out when reaching maturity, but again you need to factor in interest rates and inflation, as well as consider any tax that might apply to your savings.
For those who are less risk-averse, there are a host of high yield investment options to consider if you want to generate retirement income. So long as you are aware of the potential drawbacks, this approach may suit.
In the end, a combination of strategies is likely to deliver the best results and you should avoid putting all of your eggs in one basket. Most important of all, do not put off planning for your retirement, as inaction will have the worst ramifications for your post-work income.
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