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Investing in Your Retirement: The Best Ways to Make Money When You Are not Working

Many people look forward to their retirement as the day where they no longer have to work. However, current economic realities and shrinking pensions mean that many people approach their retirement with stress and anxiety. They worry about whether they’ve truly saved enough for their retirement and whether they’ll need to keep working for longer than they’d like, in order to continue generating income.

Fortunately, with a little bit of creativity, there are many ways retirees can make money without working during their retirement at all.

Discover how to approach your retirement feeling confident that you’ll be able to generate a passive income without having to work, allowing you to enjoy well-deserved rest for many years to come. From renting your assets, to investing, to buying property abroad, there’s truly an option for everyone.

Rent What You Own

1. Rent What You Already Own

This is likely the easiest and most straightforward option on our list, but it’s overlooked all too often. Rent what you already own. This doesn’t only apply to real estate, either.

Although renting is becoming an increasing popular option for retirees, the majority own their home when they decide to stop working. In fact, almost three-quarters (74%) of people aged 65 years and over own their home mortgage-free according to the Office for National Statistics. That means that there are many retirees with a passive income source just waiting to be tapped.

If you own your own home (and even if you’re still paying off your mortgage), renting out your space is a great option to generate income. If you enjoy traveling or find yourself going out of town to visit family or friends for months at a time, consider renting out your house while you’re away. Especially if you live in a geographically desirable area, there’s lots of money to be made by offering your house as a vacation rental. There’s a great deal of vacation rental software out there to help you out.


If you prefer staying closer to home or don’t like the idea of renting your entire home out to others, you can still consider renting parts of your space. Do you have a basement you can turn into a rental suite? A garage that could be rented as a rehearsal space, studio or even storage? An extra room that you wouldn’t mind renting on AirBnB or Guesty from time to time? The sky’s the limit.

If renting out real estate doesn’t work for you, you still have options. You can also rent out parking spaces, vehicles and other equipment. Check out:

Of course, renting out your spaces takes time and effort. It’s also important to do your research, establish systems that work for you, and determine what your insurance will cover and what it won’t if you find yourself in a sticky situation. Nevertheless, it’s a great option to generate passive income for your retirement, or pay off any outstanding debts you may still have.


2. Get Serious About Investing

Many retirees are intimidated at the prospect of investing large sums of money, especially if they haven’t done so before. Nevertheless, getting serious about investing is a great way to continually make money (and have that money make money) when you stop working. Even better, there are tons of online resources to help you start investing.

There are many different ways to invest nowadays, so the options can be overwhelming. If you’re interested in investing in general, you’ll likely enjoy taking advantage of your extra time and learning about all the different investment opportunities out there.

Savvy retirees should aim to build a portfolio of diverse investments and avoid any ventures that are overly risky. Ideally, your investments should be safe enough to protect your income and savings, but still profitable enough to continue to generate income throughout your retirement. Many retirees choose to break their retirement down into 5-year segments rather than trying to develop an investment strategy for their entire retirement at once.


If you want to start familiarizing yourself with your options, check out these popular, relatively low-risk investment options:

  • Robo-advisors: Digital platforms that invest your money for you based on algorithms rather than financial advisors. Robo Advisors are great for beginners as they’re cheap and there’s little to no effort or special knowledge required on your part. Check out platforms like Nutmeg or Wealthify.
  • Index funds: Investment funds based on a group of securities, also known as an index. Rather than depending on individual stocks, your returns depend on the overall movement of your index. For this reason, index funds are considered relatively safe, low-risk investments with reliable returns in the long-term. Some of the most popular index funds in 2021 are the Fidelity ZERO Large Cap Index and the Schwab S&P 500 Index Fund, but there are countless options to choose from.
  • Real estate: We’ve already talked about renting your spaces, but there are other ways to make money off real estate. For example, real estate crowdfunding allows you to buy a share in a large piece of real estate. Then, you’ll get a percentage of the income it generates in return. This is a great option if you’re interested in the more tangible nature of real estate investments, but don’t want the administrative hassle associated with being a landlord. Browse these real estate crowdfunding platforms for more information.


3. Buy Real Estate Abroad

We know what you’re thinking. How can I make more money by buying something? Well, it’s not as contradictory as it might seem and is yet another great way of generating passive income during your retirement.

If you’re up to the challenge of managing a property abroad and being a landlord, buying property abroad is a great investment. First, you’ll need to do your research about what kind of property you’d like to buy and where you’d like to own property. Of course, this process is easier when looking to buy property in a place you’ve visited before or have some kind of personal connection to. It also makes the most sense to buy property somewhere that you see yourself wanting to visit over and over again throughout your retirement.

Many people also view real estate as a great investment because it’s a safe, tangible investment that’s less volatile than the stock market and reliably accrues value over time.
When you own a property abroad, you’ll be able to rent it out when you’re not staying there yourself, which produces a regular and reliable source of income when managed well and can even come with tax benefits.

Nowadays, there is vacation rental property management software out there to help make this process as seamless as possible. You’ll also be able to take advantage of the opportunity to stay at your property yourself when it’s not being rented, giving yourself and your family the chance to take vacations abroad and enjoy making memories together.

Depending on your personal interests, some retirees enjoy making projects out of buying real estate and trying their hand at house flipping. That means buying property, improving it and then selling it at a profit. This is a particularly good option if you have previous experience house flipping, enjoy home improvements or just want to take on a new challenge in your retirement years.

4. Learn to Delegate

This point is especially relevant to business owners. Just because you’re retiring doesn’t mean that you have to disconnect from the business world entirely. You just have to learn to delegate.

You can still produce reliable income from your business while working minimally if you find the right people to fill your leadership roles. That way, they can take over the day-to-day operations of your business and you can enjoy your retirement. Depending on the context of your business, you can still play a passive role, attend important meetings (even via video conference) and consult on the overall direction of the company.

This can also function as a transitional strategy. You might eventually consider selling your business altogether if the right opportunity comes along in the future.

Whatever path you choose, if you’re an entrepreneur, you don’t have to totally abandon your business if you’re ready to retire. It can still provide a steady source of income for years to come.

You should feel excited for your retirement years, not associate them with anxiety, confusion and financial stress. There are many options for you to make a reliable, passive income as a retiree without having to worry about going into the office, getting a part-time job, or otherwise actively working.

We’ve outlined four of our favourite strategies, so if any of them align with you we’d encourage you to give it a shot. Even if you don’t have prior experience, the extra time you’ll have during your retirement provides you with the perfect opportunity to familiarise yourself with something new and take on a new project that will benefit you and your family for years to come.

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