Creating an income after retirement

For many, reaching retirement signifies well deserved rest, relaxation, and enjoyment. And why not? You’ve worked hard to get to this point. 

Pensioners do not always just want to sit on the porch and read a book. Some want to generate income to supplement their retirement funds. This could be out of necessity because of a shortfall, or to allow for financial security and create a better lifestyle, or just to keep busy.

Whatever the reasons for this income generation, there are many ideas from full time working to a part time job that allows freedom.

• Long term rentals.
• Short-term holiday rentals/B&B.
• Consulting business – use your professional experience at your discretion.
• Making your hobbies a business e.g. selling crafts and art or woodwork etc.
• Tour guides – if you live near a tourist destination or area then you can register as a tour guide and take groups on tours of local sites or areas.
• Bicycle or kayak rentals if you live on an island.
• Tutoring – if you live in a foreign country, you could help teach conversational English.
• Get creative and think out of the box.

Things to consider
There are various things to consider with regards to your business.
Do you want to work full time or part time or only when you feel like it? The business you start will determine these goals.
 

Example:
Having a B&B could keep you fully booked all year and requires cleaning and servicing guests. If you enjoy the interaction then great, but you could decide only to rent out in peak-season, so you have free time the rest of the year.

• Renting out rooms or an annex long term is an easy passive income without much effort on your part.
• Vacation rentals might bring in higher income, but you are riddled with daily cleaning and checking in, and have guests bother you at all hours.
• 1Offering too many services may take up all your time and you could become resentful and not enjoy your endeavour anymore.
• Keep your eye on your profits – if you are spending more than you are earning, then it might be time to give up the business. It will only cause stress in your retirement.
• If you can’t cope with the time the business demands of you, is it worth it? Afterall, you are retired and should be relaxing.
• Do not dig into your retirement savings to fund your business. You could end up with a shortfall or outlive your money. Your pension is definite. Your profit is not.
• Use other savings for your business unless you have budgeted for it from your monthly pension income.

Remember when planning a new venture to KISS – Keep it straight and simple. Don’t go too fancy or too big, unless it is an established business from before retirement.

You are retired and should be enjoying it. Envision a business that will allow you free time and to go on vacation whenever you want.

Your financial adviser can help you plan, budget and check financial viability before starting a business. [email protected]  [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.