extra money in retirement

Are you looking to make a little bit of extra money in retirement? If so, you’re not alone. Research has found that 17% of people aged over 50 are making money outside work, while a further one in 12 says they plan to find a new way to generate some extra income.

With the average state pension being around £8,000 a year and the average retired household spending over £21,000 a year people have to work out how much they need to retire, and if they might need some extra money in order to retire comfortably.

So, if you’re looking for ways to make a little extra money in retirement, here are five options you could consider.

Rent out a room

If your children no longer live at home and you have a spare bedroom, you could consider generating some extra money through renting a room.

Taking in a lodger can be a good way of making some extra money in retirement, and it can also be tax-efficient. The ‘rent a room’ scheme allows you to rent a furnished room in your home to someone, without paying any tax on the first £4,250 that you make each year (this is halved if you share the income with your partner or someone else).

If you don’t have a spare room you may still be able to generate additional income from your home. Websites such as Storemates let you rent out storage space – perhaps in your loft or garage – to people looking for cheap storage.

Alternatively, you could consider renting out your spare car parking space. If you live near a city centre or a football stadium you could rent out your space to a commuter or fan. Even a neighbour may need an additional space to park their second car.

Check you are claiming the right benefits

Each year, up to £3.5 billion of benefits go unclaimed by older people. If you want to supplement your income in retirement, make sure that you are claiming all the benefits to which you are entitled.

Benefits could help you to pay for care, bereavement, bills or to maintain your independence. You could be eligible for pension credit, housing benefit or even attendance allowance.

Sally West, Policy manager at Age UK, told The Independent: “Some people just don’t know that there are benefits out there; they just haven’t heard of benefits like the pensions credit. Often even if people know there is support out there they think it won’t apply to them.”

Claiming benefits that you’re entitled to isn’t necessarily making extra money in your retirement, but it definitely helps when trying to increase your retirement fund.

Sell on eBay

Online auction sites such as eBay let you sell your unwanted goods. It’s easy to set up an account and you can list your items in a matter of minutes.

Search your loft or garage for items to sell – you will be amazed at what people will buy! Make sure you take good pictures and always bear in mind the shipping costs when you decide on your selling price.

If you are artistic then you can also sell your handmade crafts through sites such as Etsy or Folksy. Both sites charge a small listing cost per item and you pay a percentage of your sale price as commission.

Start a small business

There are lots of skills that you can turn into a successful small business, many of which you can run from home:

  • Tutoring – do you play a musical instrument? Are you strong in academic subjects? Or are you fluent in another language? Share your skills and you could tutor individuals or groups either in your home or online.
  • Ironing – if you don’t mind tackling a pile of creased laundry, then you could earn extra money through offering an ironing service. Set-up costs are minimal and you can do it from the comfort of your own home.
  • Dog walking and pet sitting – if you have a fondness for pets, you could supplement your income by offering a dog walking or pet sitting service. As well as helping you earn more cash, it can help you keep fit and healthy.

Starting your own small business like the ones listed can be a great idea when you’re thinking of how to make money in retirement as it typically requires little or no cost to get started.

Do market research

Market research companies are always looking for willing people. You could earn up to £50 for an hour or two of your time, and the work is often interesting and varied.

As well as taking part in focus group work, lots of companies host online surveys which you can complete in your own time. Many pay in cash or in retail vouchers and you could earn up to £5 for just a few minutes of your time.