Not properly planning for your retirement can be challenging, both financially and health wise. If you want to live comfortable during your retirement years, it’s important you plan your finances ahead of time. Planning your personal finances before retirement gives you opportunity to achieve financial freedom during your old age. It also allows you to take care of your health and other essentials without having to depend on others or the government.
In case you’re just retiring from active service or your retirement age is fast approaching, and you’ve been craving for a life of financial freedom after retirement, then reading this article will help you to achieve your dream. In this article, you will learn five ways you can effectively increase your income in retirement. Now, please grab a pen as I share these tips with you so you can implement them in your life. (For more, see: Retirement Savings: How Much Is Enough?)
1. Plan Ahead By Increasing Your Social Security Benefit
Your Social Security can be strategically planned to favor you during retirement. You can increase your Social Security benefits by increasing your Social Security payments. Basically, your benefits are calculated using your highest earning during your active years. To increase your retirement earnings through this approach, there are two ways to do it. You can adopt the two methods or one of them. The first approach is to earn more during your active years. Then, the other one is to delay your Social Security claims until you are older so as to increase your monthly benefits. Your benefits increase by 8% for every year you delay beyond your retirement age.
2. Consider Earning Rental Income
Rental income can serve as a good source of revenue for retirees. You can invest in real estate or any other renter properties for that matter. Rental property provides you with some tax benefits because the IRS only requires you to pay taxes on the profit that you earn from your rental income. These rental properties can earn you considerable monthly or yearly income depending on your agreement with the tenant.
3. Invest in Dividend Stocks
Dividends from stock investments is another way retirees can earn comfortable income for the rest of their lives. The income from your dividend may not be much at the beginning but if you keep reinvesting your dividend, you will be able to earn substantial income from your investment to take care of your every day needs when you retire. (For more, see: Retirement Planning: How Much Will I Need?)
4. Get a Part-Time Job
Being retired does not really mean you’re tired. If you’re still strong and active, you can consider working part time as a consultant. This can actually earn you a decent income which you can use to support your lifestyle alongside the income from your pension. Working part time can also serve a positive purpose of keeping your body active and healthy.
5. Create An Online Business
Today, the internet offers a lot of online business opportunities you can do from the comfort of your homes. You can become a freelance consultant, helping startups to take advantage of your experience in the industry where you retired to build their own businesses. There are other options for you both online and offline to build a new career for yourself. All you need to do is to attend a few weeks or months of training sessions in order to have a grasp of the skills required.
In conclusion, your retirement shouldn’t be endured. It should be enjoyed. Retirement is a period of time in your life when you should visit places and explore the world. Planning your retirement income in advance is a sure fire way to live your dreams life in retirement. (For more, see: Why People Are Delaying Retirement.)