Seven ways you can fund your retirement

Looking ahead to the day you retire and wondering if you can afford to quit work. Here are seven ways you can fund your retirement.

Retirement is a big, life-changing step. After spending the last 40 years working, it can be a difficult transition, both emotionally and financially.

And, as you approach retirement age, you may worry about how you’ll afford it.

Trethowans
Trethowans

Luckily, today you have a wealth of options to help tide you through your retirement years, and ensure you have enough money to fund the lifestyle you want. Here are seven quick ideas to help you fund your retirement.

1) Your retirement accounts

Hopefully, earlier in your career, you set up a retirement account. The best sorts of retirement plans are 401ks and IRAs. Ideally, your employer will have sponsored a 401k and, once you retire, all those monthly payments will become available to you – along with the interest they’ve accrued over the past decades.

The best way you can make sure that you’re financially secure when you leave the working world is to have one or more retirement accounts that you regularly contribute to.

2) Start a small home-based busines

There are so many low-cost and easy ways to bring in extra income these days. That crafting hobby you’ve been putting time into on the weekend for the past 20 years? Turn it into a paid gig on Etsy. This is a great option if you’re trying to bring in just a bit more income to fund your retirement hobbies.

Plus, with an online-based store, you don’t have to worry about costly overhead and rent. Just craft your crafts, post them online, and mail them to whoever buys them!

3) Rent out a room

With online tools like Airbnb, you can easily bring in some cash by renting out your spare room. If you want more consistent tenants, you can always consider simply renting out a room full time.

Just be sure you look into your city or town’s regulations around this. This is an especially good option if you live in a desirable location, like near the heart of a big city, or out in scenic countryside. People may pay well to enjoy a getaway in your neighborhood. 

4) Take out a reverse mortgage

Many people only need an extra source of disposable income to better enjoy their retirement, but some need more significant sources of funds for larger living expenses and medical bills.

If you find yourself in this situation, there are a few options to consider. They aren’t right for everyone, but some people who own property might benefit from a reverse mortgage.

A reverse mortgage is basically a loan: you are paid instalments based on the value of your house, and at the end of that period, the house belongs to the loan company. Use a reverse mortgage calculator to see if this option is viable for you.

5) Don’t fully retire

Your days of working 9 to 5 may be over, but that doesn’t mean you have to completely leave the working world behind you. With a lifetime of experience under your belt, you’ve accumulated a wealth of wisdom that can still be used to pay the bills.

You might consider part time consultation work, or a setting up your own freelancing business. In retirement, you’ll be able to choose your own hours and decide on your schedule. You might even consider professionally mentoring young professionals who are starting out in your field.

6) Start a blog

In keeping with the theme of spreading your wisdom, many people may benefit from what you’ve learned over your lifetime. Consider using that knowledge to write a blog.

Making your blog industry-specific, and even using it as an arm of your part-time consulting business, can be a great way to even further supplement your income once your content becomes paid. 

7) Babysit

Looking for quick ways to bring in a small amount of money? If you like children, or maybe even miss having your own young children, you can might consider becoming a babysitter.

Many young families would love an experienced older person who could look after their children while they were working or out. If you don’t know any families who need a babysitter in your network, you can try an app-based babysitter service.

Photo by BBH Singapore