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Social Security, Pension, and Investments
Social security is a major source of post-retirement income, and managing these influences affects retirement income levels in a big way. Refrain from taking social security early, if possible. If a person between 62 and 70 years old delays taking social security, the amount increases by eight percent every year.
Apart from social security, pension funds and savings accumulated during the working years constitute the major source of post-retirement income. The returns from the corpus, however, may not suffice for sustaining the retired person’s lifestyle, prompting a dip into the corpus periodically. This further reduces post retirement income. To overcome this situation, make smart investments early. Investments such as stocks provide good returns that beat inflation and bank interest, but remain susceptible to extended periods of slumps where the investor may not even recover the capital. Investing for the long term, and reviewing the investment portfolio periodically to remove poor performing funds helps to mitigate such risks.
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The best way to earn a living after retirement is to work toward generating recurrent and perpetual passive income early in one’s life. Some ways of working toward a passive income include:
- Making investments in stocks that pay high dividends.
- Purchasing real estate for rental income.
- Investing in metals and minerals that appreciate over time, allowing sales of a portion of the stock without erosion in capital.
- Writing blog and website content, and monetizing them for perpetual earnings from Internet advertisements.
- Publishing books or making inventions for recurrent royalties.
The success of generating passive income depends on the soundness of the medium. In an uncertain world, no investment or channel is completely secure, and an outside chance of the income drying up when one really needs the money always exists. For instance, a new road that kills off the commercial prospects of the locality may make the investment a property dud, or a new invention might make one’s invention redundant, causing the drying up of royalties.
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Many companies hire retirees as consultants, to tap their valuable experience. In addition, many companies hire retirees in various temporary or part time clerical, administrative, and accounting jobs, providing shorter work hours in less stressful or less taxing environments for lesser pay.
Sectors where the hunt for talent has reached endemic proportions, providing good opportunities for retired hands include:
- Healthcare, for non medical care administration jobs
- Nonprofit services, for delivery and administration
- Retailing, for billing
- Driving and watch guards
- Education, with opportunities extending from personal tuition, to guest faculty in colleges
Other job opportunities for retired hands include offering services as babysitters, personal caregivers, pet care, and tour guides.
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Retirement is a good time to convert one’s life passion or hobby into moneymaking opportunity. Use the time at disposal to pursue hobbies or interests such as arts and crafts, cookery, gardening, making baskets, at a serious and professional level. Sell such products, or offer at-home classes to teach such crafts.
Alternatively, use a portion of the available retirement funds to start a small business. Well thought out and well run businesses, however small, invariably provides better returns than bank interest and most other investments.
The primary challenge toward earning a living after retirement is continuing to apply critical thinking and decision-making skills, and remaining organized.
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- Forbes.com. "Best Post Retirement Paychecks." Retrieved May 12, 2011 - http://www.forbes.com/2008/01/15/retirement-careers-job-pf-retire-in_jd_0114retirement_inl.html
- Boomer Advisor. “Life After Retirement” Retrieved May 12, 2011 - http://www.advisor.com/story/life-after-retirement
- Beattie, Andrew. "Retire From Work, But Not Personal Financial Planning." retrieved May 12, 2011 - http://www.investopedia.com/articles/retirement/07/life_after_retire.asp
- US News. "21 Ways to Make Extra Money in Retirement" Retrieved May 12, 2011 - http://money.usnews.com/money/retirement/articles/2010/07/19/21-ways-to-make-extra-money-in-retirement
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