With lifespans growing longer, many experts predict that post-retirement jobs will become more and more prevalent. In reality, a person reaching age 65 today can expect to live 19 to 21.5 years longer, with around 14% living beyond their 95th birthday, according to the Social Security Administration.
It's not surprising, then, that many people who are approaching retirement today want to experience more meaning and engagement in their lives—for longer—than previous generations. Furthermore, as the cost of living continues to rise, many retirees are searching for methods to supplement their incomes by staying engaged in the workforce while also maintaining a high quality of life. Although some people think of retirement as a time to take it easy, relax, and enjoy the fruits of their labor, for many, the thought of sitting around doing nothing all day is downright scary. If you're someone who wants to stay active and engaged in your current or encore profession, then you may be wondering how you can make some extra money in retirement. Many may find that turning a beloved hobby or area of expertise into a retirement hustle is an ideal option.
How to Turn Your Hobby into Retirement Income
One common option is to leverage the skills and knowledge that you’ve built through your year of employment to create a product or service that people will value and pay for. This could be anything from teaching a cooking class to starting a consulting business. The key is to find something that you're passionate about and that other people are seeking.
If you're not sure where to start, then consider reaching out to your network of friends and family. See if anyone has any ideas or suggestions for you. You can also check out websites like Craigslist or Freelancer.com to see what kinds of opportunities are trending. There are so many choices, and it can be tough to know where to begin. Here are some tips on how to turn your expertise into extra income:
1. Do some research and identify a niche market that you can serve.
There are several businesses you could consider starting, depending on your interests and skill set. For example, you could become a tutor or start teaching classes on a topic you're passionate about. Or, if you're crafty, you could start an Etsy store selling handmade goods. Whatever business you decide to start, make sure it's something you're genuinely interested in – this will make the process more enjoyable and successful.
2. Find a way to stand out from the competition by offering something unique.
There are a lot of tutors out there vying for students' attention and business. So, how can you make sure that you stand out from the competition? By offering something unique! Whether it's a new teaching method, special tutoring packages, or even just a more personalized approach, find a way to make your tutoring services stand out.
The same goes for any other type of service or product you may be selling. If you're running an Etsy store, for example, find a way to make your products stand out from the rest. Unique packaging, personalization options, or even just adding a handwritten note to each order can go a long way in making your store stand out from the rest.
No matter what business you're in, there's always room for creativity and innovation. So, use your imagination and find a way to make your business stand out from the crowd!
3. Promote your side hustle through social media and other online channels.
There are several ways to use social media to promote your side hustle. First, consider creating a dedicated page or profile for your business on sites like Facebook, Twitter, and LinkedIn. This will give you a place to share information about your business, as well as connect with potential customers and clients.
In addition to creating a dedicated page or profile for your side hustle on social media sites, you can also use these platforms to create and share content that will help promote your business. For example, you can write blog posts about your business, share photos and videos of your work, or even offer discounts and promotions to your followers.
With a little effort, you can reach a whole new audience of potential customers and clients online!
4. Keep your costs low so you can maximize your profits.
One of the most important things to keep in mind when starting a side hustle is to keep your costs low. This way, you can maximize your profits and make the most of your retirement income.
There are a number of ways to do this, but one option is to use online tools and resources whenever possible. For example, instead of hiring someone to design your website or logo, consider using a free or low-cost service like Canva. You can also find free or low-cost stock photos online for your website or social media pages.
In addition to using online resources, another way to keep your costs low is to start small and scale up as needed. For example, if you're thinking about starting a blog, consider starting with a free platform like WordPress.com. Once you've built up a following, you can then upgrade to a self-hosted site for more flexibility and control. When keeping your costs low, you can ensure that your side hustle is profitable and sustainable in the long run.
Be Prepared to Work Hard and Hustle.
There are many opportunities for retirees to supplement their income and your past professional network should not be overlooked. By keeping costs low and focusing on niche markets, you can maximize your profits and enjoy the independence that comes with being your own boss and working with people you enjoy and respect. With a little effort and strategic planning, your retirement hustle can be a great success.
Finally, take note of your tax situation. Could your post-retirement income, whether from your retirement side hustle or working part-time for an employer, put you in an unnecessarily high tax bracket? Even part-time earnings might put you in a category where you'll pay federal income taxes on a larger percentage of your Social Security benefits if you're receiving Social Security benefits. This is why it’s important to make sure your side hustle is part of your overall financial plan. At Moscaret Investment Advisory, we work with you to get a clear picture of how any "additional" retirement money will impact your entire position. Want to discuss your retirement hustle? Reach out to us today!