How We Want To Increase Our Income After Retirement

By | December 1, 2015

How to Increase Your Income after Retirement
After retirement, it can easily be seen by any individual that it is extremely difficult to live off of Social Security and personal savings. Senior citizens want to be able to travel, buy gifts or enjoy a quality lifestyle but this cannot be done on retirement alone. Below are a few ideas on how seniors can earn more money by making small changes after retirement.
Consider Part Time Work
Many companies and businesses are willing to hire seniors for part time positions. To supplement a retirement income, a part time job can do the trick. Not only can you enjoy the extra spending money you have, but you can make new friends and have people to spend time with. Your mind and body will stay sharp as you stay active after retirement.
Avoid an Early Retirement Account Distribution
When you decide to take an early retirement account distribution, you can lose 10% of your income based on a tax penalty as well as regular income tax price based on the amount you withdraw. You can begin to access an IRA account without a penalty at age 59 and a half, so be sure to wait to not lose some of your earned income. To ensure your retirement benefits can last, take a 3 to 4 percent withdrawal rate.
Reverse Mortgage
A reverse mortgage is a way for a retired citizen to use home equity monies. You can borrow money based on certain factors of your home equity that will include the market value, interest rates and life expectancy. Anyone 62-years of age or older will generally not have to pay back the money as long as the person is living in the home. Fees of the loan are due though which will include home maintenance, insurance and property tax. If you decide to move, you will have to pay back the reverse mortgage.
Consider Reducing Expenses
When you begin to enjoy retirement, you will need to look at the amount of money you have coming in each month. You may have to make changes in your spending based on this amount. You will still have bills to pay such as cable or car payments. Be sure to figure in your ‘must-haves’ before spending money on items you do not necessarily need to help save money.
Income via Real Estate
If you have the means, you might consider investing in real estate. Any properties you own can be a secondary source of income once you retire. Investing in property early, means the property can be paid off and you live off of a portion of rental income available. You can also sell properties and live off the money earned from the sale.
These are just a few ways you can earn money after retirement. Consider your special skills and local area to choose options that will best fit your income needs. You will find that even the smallest changes will help you to live out your retirement in complete happiness with no stress over money.