Top 4 ways to get extra cash when you retire

Top 4 ways to get extra cash when you retire
Written by Mark Grimley
Published on 23rd August 2017
Updated on 8th December 2020
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Some of us welcome retirement with open arms, however, others don’t feel ready for the break and don’t want to dip into their pension pot just yet.

Changes to the state pension age mean that, if you were born after 6th April 1978, you can’t retire until the age of 68. But whatever your age, when you finally cross that finish line, you may realise that you need some extra cash. So here are our top four tips for earning money after retirement age.

1. Make cash from your hobby

So, you’ve finally packed in the day job - what’s next? Now you’ve got a great opportunity to make money from the things you love doing. Perhaps there’s a skill that you’ve always wanted to turn into a source of income? If you’re musical, you could offer lessons, if you’re handy, you could turn your attention to crafts, or if you’ve got a way with words, then freelance writing might take your fancy. There are plenty of freelance gigs on websites such as Fiverr and Airtasker that may suit your skills.

Sites like Etsy, Not on the High Street and Folksy offer you a direct connection with consumers who want handmade gifts, cards, artwork or clothing. These sites do charge seller fees, but it’s only a matter of a small percentage. In return you can manage and publicise your business.

You don’t have to pay National Insurance contributions if you work past State Pension age.

2. Stay in your job

Although there are some roles with mandatory retirement, such as pilots or the fire service, generally you can’t be forced to retire from your job without good reason.

If you’re physically capable of safely continuing in your current role then speak to your employer about staying on. By putting off your state pension you’ll end up with higher weekly payments when you decide to start your retirement.

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3. Go part-time

You might want to look for a part-time job to ease yourself into retirement. Local shops and restaurants, or offices looking for administrators are a good place to start. Gumtree and Reed often advertise this type of role, or you could even check the boards at your local supermarket.

There are some employers that are quite vocal about their age policies, happily taking on more mature employees, such as B&Q, Marks & Spencer and Sainsbury's.

4. Become your own bank!

Employment isn’t the only way to earn money - investing in a peer-to-peer lending scheme such as Fund Ourselves could provide you with a decent income. These schemes work like traditional loans , but the cash doesn’t come from a bank or building society - it comes from other people. There’s now even a market for peer-to-peer payday loans, from new lender The Money Platform. If you’ve decided to take out a chunk from your pension pot early, you could put it into one of these schemes. As usual with investing, be aware that the value of your investment can go up or down and you might be at risk of losing some or all of your capital.

However, you could get a nice return from this type of lending, and most peer-to-peer lenders put protection in place for individual investors to give them peace of mind.

Still not sure what to do?

Don’t feel pressured to retire if you don’t think you want to. Take a look at your finances and consider getting or speaking to a financial advisor. It’ll put you in a stronger position to follow the path that you wish to take as you head towards retirement.

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Mark Grimley
Written by
Mark Grimley
Head of Partnerships & Take Control Author at Choose Wisely

Mark joined Choose Wisely in 2015. He continues to work in close contact with the providers, brokers and journalists operating in the world of consumer credit.