Alternative sources of income if you don’t have a pension

TomorrowMakers ™

Alternative sources of income if you don’t have a pension

24 May 2017
How do you live a comfortable retired life when you have no pension? Here are some alternatives to help.

Many retirees enjoy the benefits of pension offered by their organisations. But what happens if you aren’t entitled to pension? How do you live a comfortable retired life? Here’s a list of alternative income sources to consider post retirement. 

  1. Use Your Property 

There are two ways property can become a source of income.  

  1. Rent OutIf you have a second property, renting it out can ensure you have at least one source of fixed income. Here’s the Dummy’s Guide to Renting Out Your Home. 

  1. Rent In: If you have an extra room in your house that no one uses anymore, consider renting the space out to a PG (paying guest). It may not be as lucrative as an additional property, but it still offers a steady income and allows closer monitoring of this new person. 

Whichever you choose, ensure you follow all the necessary legal procedures when renting out your space.

  1. Investments 

There are countless investment options you can benefit from today - stocks, bonds, mutual funds, ETFs, etc. Investments usually offer better returns over a longer period, which is why they may prove to be your best income source post retirement. To get the most out of your investments, it is best to put money into different instruments, which will diversify your portfolioConsider both, fixed-income and market-linked investments. Whatever you choose, make sure you start investing early to get the best results.  

  1. Phased out retirement 

Some organisations offer their employees a ‘phased retirement’ option, which involves continuing to workbut gradually spending fewer hours at the workplace until it’s time to completely stop working. This helps you ease into your retirement phase and new lifestyle, while still earning an income. It also lets you plan for the future accordingly. 

  1. Working Part-Time 

Another way to earn an income post retirement is through a part-time job opportunity. You can use your many years of experience as a consultant in your specific field, or a freelancer. Temporary or part-time jobs as teaching assistants in nearby schools or colleges are also suitable options to consider once you’ve retired 

  1. Start your dream business 

Retirement is the time to pursue hobbies and things you are passionate about without any hesitations. You can even start business, doing what you love and know best. It could be anything from tutoring kids in your home to offering baking or music classes; or even starting an online business. Figure out what you love to do, and find a way to monetize it. The opportunities are endless.  

Remember, you are never too young to start planning and saving for your retirement because the sooner you start the more value your money can gain. That’s the power of compounding. Plan for your retirement and make them the best years of your life! 

 

Disclaimer:?This article is intended for general information purposes only and should not be construed as investment, insurance, tax or legal advice. You are encouraged to separately obtain independent advice when making decisions in these areas. 

 
 

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