How to make extra cash post-retirement
<p>As Australians enjoy healthier and longer lives, seniors are spending more and more of their time in the retirement stage of life. For some, this may mean having to take on additional work post-retirement to make ends meet. If this is the case for you, luckily you have options. Before you take on part-time work post-retirement, consider the following steps:</p><p><strong>1. Assess your retirement fund</strong></p><p>Before your retirement draws near, speak to a financial advisor to make sure your super fund will be enough to support you. According to superannuation expert, Dean Felton, there are a few steps you can make in advance to maximise your money come retirement. These include:</p><ul><li>Combing super accounts to avoid paying multiple account fees.</li><li>Making sure your super is invested in a low-cost fund that has a track record of good long-term investment performance.</li><li>And, if you can afford it, considering topping up your super by adding to the contributions made by your employer.</li></ul><p><strong>2. Decide on income stream vs a lump sum</strong></p><p>When it comes to accessing your super, it’s not one size fits all. Consider the following options:</p><p><strong>Income stream</strong> – An income stream means you receive your super savings in interval payments – just as you would a pay cheque during your working life – from a low-cost retirement income account. According to Felton, this option “gives you some certainty about your income, and it means your money can remain invested in your super fund, continuing to earn investment income for you.”</p><p>Should you need to make a large payment for any exceptional additional expenses, you also have the option of withdrawing on an as-you-need-it basis. You can set up this option with your super fund or financial planner.</p><p><strong>Lump sum</strong> – A second option is to receive all of your super savings at once. According to Felton, “lump sums can help you pay off big outstanding expenses, like your mortgage, or allow you to make a special purchase, like a holiday or a new car.”</p><p>Still, this option is best utilised under a well-thought-out plan, as “it’s important to take into account what effect this will have on your retirement, how much money you’ll have left to live on, what ongoing expenses you have, and how heavily you may need to rely on the age pension.”</p><p><strong>3. Consider how part-time work can affect your super</strong></p><p>Once you’ve decided how you want to access your super according to your needs and lifestyle, you may find working part-time would benefit you. In this case, your super can be effected based on a variety of factors, which, according to Felton, include:</p><ul><li>Your age</li><li>Whether you've transferred your super out of your super fund</li><li>Whether your super is invested in a retirement income option or taken as a lump sum</li><li>How long you intend to work</li></ul><p>“Provided you’ve reached your preservation age – the age when you can legally access your super under normal circumstances, and you intend to work fewer than 10 hours a week, then you are still considered to be retired, and you can access your super benefits,” Felton says. “Often, your super fund will ask you to sign a declaration stating that you don’t intend to be gainfully employed for more than 10 hours per week.”</p><p><strong>4. Consider your work options</strong></p><p>Working part time after retirement has many rewards, including, “financial benefits, such as the possibilities of supplementing the age pension, and preserving your super for longer, as well as more personal benefits such as easing the psychological transition from full time work to retirement,” says Felton. Once you’ve made the decision to take on part-time work to supplement your super fund, consider your work options. Some viable means of income include:</p><ul><li><strong>Dog walking</strong> – If you love animals, setting yourself up as a dog walker is an enjoyable and flexible means of income. You can find work as a dog walker using sites like <a href="http://www.gumtree.com.au/" target="_blank"><span style="text-decoration: underline;"><strong>Gumtree.com</strong></span></a></li><li><strong>Selling online</strong> – Make cash on your own schedule by selling niche goods online on sites like eBay. If your business takes off, you could even make additional income by selling ad space on your website. </li><li><strong>Childcare</strong> – Your kids may be grown up, but working as a child-carer means you can interact with kids again whilst earning an income.</li><li><strong>Freelance writing</strong> – If you’re a writer, consider making an income by freelancing online. Sites like <span style="text-decoration: underline;"><strong><a href="http://www.freelancer.com.au/" target="_blank">www.freelancer.com.au</a></strong></span> and <span style="text-decoration: underline;"><strong><a href="http://ozlance.com.au/" target="_blank">http://ozlance.com.au/</a></strong></span> can set you up with potential employers.</li><li><strong>Retail</strong> – Many retails hire part-time workers seasonally. If you enjoy interacting with the public, this position could be ideal for you.</li><li><strong>Teaching</strong> – Share your wisdom with others by teaching enrichment classes relevant to your experience at local universities or, if you’re talented in math or English, tutor students who need extra help.</li><li><strong>Your current job</strong> – Speak to your employer and see if you can continue working your current job at reduced hours. So long as you’re working less than 10 hours a week, it shouldn’t affect your super.</li></ul><p><span style="text-decoration: underline;"><strong><a href="https://www.youtube.com/watch?v=qW4JytkdL2s" target="_blank">Curious to know what it might look like to design your own retirement? Well Dave in this video is proof that it can look pretty damn good!</a></strong></span></p><p>THIS IS A SPONSORED FEATURE IN CONJUNCTION WITH AUSTRALIANSUPER</p><p><span>By clicking any of the links within this article you will be taken to the AustralianSuper website.</span></p><p><strong>Related links:</strong></p><p><span style="text-decoration: underline;"><em><strong><a href="/finance/retirement-income/2015/09/how-to-make-money-after-retirement/">3 great ways to make money after you retire</a></strong></em></span></p><p><span style="text-decoration: underline;"><em><strong><a href="/finance/retirement-income/2015/08/superannuation-when-you-divorce/">What happens to your super if your relationship ends?</a></strong></em></span></p><p><span style="text-decoration: underline;"><em><strong><a href="/finance/retirement-income/2015/08/aussie-accessing-super-early/">Why are a record number of Aussies accessing super early?</a></strong></em></span></p>
