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Saving enough money for a comfortable retirement isn’t always easy, but it’s an important financial goal for many people. The idea is that once you’ve left the workforce, you’ll still need an income so you can pay for things in your life, like food, clothing, rent, hobbies and family activities. So, along with Social Security, investing money in a 401(k) and/or Roth IRA over the years is the best way to give yourself savings you can use in your golden years. However, for many people that money doesn’t last them as long as they thought it would and they end up outliving their savings.
According to a 2019 Northwestern Mutual study, adults on average think there’s a 45% chance that they will end up outliving their savings. This could mean that they may be forced back into the workforce or have to live with a family member who can take care of them.
However, one way to mitigate this risk is to take action before it gets to this point. Retirees who are concerned about having enough money to last the rest of their lives might first consider some community initiatives that will allow them to cut costs and retain more of their savings — like a reduced fare for public transportation for seniors or community programs that provide various services to seniors for free. But if that still isn’t enough, and returning to the workforce full-time is not an option for you, you might consider taking on some side hustles to earn extra income.
Side hustles are pretty much for everyone — and there are a ton of creative ways for people to earn money doing things they’re already good at. While most side hustles may not earn you thousands of dollars per month, especially when you’re first starting out, it could allow you to rack up some extra spending money so your retirement investments can continue to grow.
Select asked Barbara O’Neill, a Certified Financial Planner and author of Flipping A Switch: Your Guide to Happiness And Financial Security in Later Life, about ways to earn extra money as a retiree. Here’s what she said.
Consider your skillset
Finding another way to make money starts by thinking about your abilities, likes and dislikes and even the amount of time you have to dedicate to your new side hustle.
“Ultimately, considerations for earning extra income will need to be made on an individual basis,” O’Neill said. “Retirees should …….