5 Ways to Generate More Income in Retirement

Retirement finance is always thought of as a two-part process. People spend decades of their lives generating and saving money; and after retirement, they live a few decades spending the money. This does not have to be the case, however. Once you are retired, you can depend on other sources of funds other than IRA and 401(k). 

Even after your career life, you can continue to get paid. If you diversify sources of income in retirement, your nest egg will be under less pressure and you will be protected from market volatility. In other cases, you may get nonfinancial benefits. 

Five Investment Strategies

When it comes to asset allocation, there are five investment strategies that one can use, depending on risk tolerance and financial goals. They include:

  • Aggressive
  • Moderately aggressive
  • Moderate
  • Moderately conservative
  • Conservative

The following are great sources of income after retirement. Some of them can bring significant returns but others will only give you lunch money. 

Income Investing

In your earning and saving phase, allocate more money to growth stocks. These are shares that have the potential to increase in value steadily over the years. As you get closer to retirement, shift more towards income generating assets. Bonds with interest and stocks with regular dividends are good examples. REITs (real estate investment trust) would also be a good idea.

While still in the earning phase, re-invest any income earned from these assets to grow your nest egg. 

Social Security

The time you start receiving benefits partly determines how big the check will be. You become eligible to take benefits when you are 62 years old. However, the money will be 30% less compared to if you start at age 66 or 67. 

If you wait until you are 70, the benefit increases by 8% every year after you turn 66. You don’t really have to wait to turn 70, though. The point is: only take the benefit if you really need it. 

Rental Property

Rental property is a good source of consistent income—but you have to be ready to deal with the stress that comes with being a landlord. 

If you plan on relocating after retirement, don’t sell your current home; rent it. If all the retirement accounts are fully funded and you still have some money, consider buying another property to rent out. 

Research the market extensively before you put any money into real estate. 

Part-Time Jobs

Once you retire, find a part-time job for extra money. You don’t have to work many hours—may be 10 hours a week or so. 

In addition to a source of income, you will get a sense of purpose and maintain social contact. Find something that you are passionate about. 


In the private sector, pensions are almost non-existent. In the public sector, however, they are still a thing. They help to offset low payments for police officers, firefighters and teachers. See if your job has any pension benefits. While it may not be much, it is something. 

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