You’ve heard of the ‘silver tsunami,’ the surge in Americans reaching retirement age, leaving behind a depleted workforce. But there could soon be a reverse tsunami, where legions of retirees return to work to replenish rapidly depleting savings.
The work pivot is mainly down to a familiar problem — retirees are afraid of running out of money, with the issue so pervasive that 64% worry more about running out of cash than dying, according to a recent Allianz Life study. Add to the mix longer life spans, fewer company pensions, rising doubts over the future of Social Security, and a half-decade run of high inflation, and it’s no wonder that so many retirees are returning to the workforce, in some form.
According to a new Northwestern Mutual study, 40% of U.S. adults plan to work — or are already working — in retirement. That figure rises to 45% for millennials and 48% for Gen Xers, with the Baby Boomers marking the last U.S. generation demographic where most retirees say they won’t work in retirement.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
Aside from financial reasons, more retirees say they’re returning to work to stay active and keep their mental skills sharp during retirement. And as longevity increases, that could be a lot longer than expected.
“I’ve found most retirees enjoy the time off from work for about two to three years, but then they start missing the routine, the friendships at work, and they often struggle to find their new purpose,” said George McFarlane, president of 7 Waters Advisors in Longview, Texas. “I had a mentor tell me that he didn’t retire, he retreaded. He said, ‘I would rather wear out than rust out.'”
While many retirees seek jobs that emulate, or at least are tied to, their career years, seniors also look for jobs and gigs that offer a departure from their paycheck years.
“Retirees working in retirement find it a fulfilling way to scratch a creative itch they didn’t have the opportunity to indulge in during traditional employment,” said Diana Kelly Levey, a Long Island, NY-based freelance writing business owner.
“Having a side hustle in retirement can also help supplement income, allow someone to pursue a dream (like seeing their name on a published article), sell something they’ve crafted or created, give structure to their days, foster a sense of purpose, and help one feel part of a community,” she said.
Given the advanced age that may limit physical work or jobs requiring long commutes, some retirement side gigs are more suitable than others for retirees. The following gigs should be at the top of the list.
1. Plant a flag in the real estate market
You know the old saying: “Buy land because God isn’t making any more of it.” So it goes for retirees with a penchant for sales, management and a side hustle.
“Getting involved in real estate in some way can be a great side gig for retirees,” said Adam Hamilton, CEO at REI Hub in Richmond, Virginia. “There are a variety of different ways to do it, ranging from simply investing in REITs, to flipping homes, to buying properties and converting them into rentals, to turning a portion of your home into a short-term rental.”
In real estate, you can be as hands-off as you want (for example, you could hire a property manager to take care of all of the logistics and day-to-day work), or you can treat it as a ‘job’ and be very hands-on. “Regardless, real estate investing can be a great way to earn a reliable stream of income, and it can give you a project to focus on in retirement,” Hamilton said.
2. Get into content creation
Allen J. Weiner, a historian and author of the book David Crockett in Texas: His Search for New Land, said he decided to keep rolling as a writer in retirement, if at a slower pace.
“For years, I had been writing outside of my day job, which I enjoyed, but I couldn’t make a living at it,” the Florida-based retiree noted. “Once I retired, my days were free to do research, visit libraries, do phone interviews with people, and write during my most productive hours, rather than trying to do it at night when I was tired from working all day and taking care of household responsibilities.”
Weiner said he continues to view publishing books and articles as very rewarding.
“It doesn’t pay much, but I am still interviewed about my work and quoted in the media,” Weiner said. “Writing at my own pace also leaves my time flexible for other pursuits, such as travel.”
Retirees don’t need to step too far outside their career specialties as a writer/content producer. Stepping into a content role as a newsletter publisher on a platform like Substack or as a product expert could be easier than you may think.
“As a writer, you can share expertise through weekly posts about gardening, investing, or industry insights,” said Carrie Loranger, founder of Click Digital Publishing, in Mission Viejo, California. The earning potential for doing so ranges from $200 to $2,000 a month, Loranger said.
3. Be a business organizer
If you want to work from home part-time, say 10 to 20 hours a week, there’s a significant demand for office workers.
“Some digitally-savvy, organized retirees might find it rewarding to take on virtual assistant work, while some would like data entry or bookkeeping,” said Kelly Levey. She noted that in these kinds of gigs, it’s important to be clear about hours and expectations.
“But if you’re someone who prefers in-person work as a reason to get out of the home and need face-to-face interaction, you might be open to doing tutoring, working at a fitness center reception desk, walking a neighbor’s dog, or working at a community center.”
4. Leverage your home maintenance and repair skills
Daniel Rushford, a Los Angeles, California, resident, is utilizing his fix-it skills for Airtasker, a task management platform that connects customers with skilled local helpers.
“Working in retirement through Airtasker has been completely different from when I was working full-time,” Rushord said. “I choose my own tasks, set my schedule, and get to work with people in my community,” Rushford said. He’s handled everything from furniture assembly to repairs and delivery tasks. “It keeps my mind sharp and gives me purpose without the stress of working full-time.”
Task-mastering is perfect because Rushford can leverage skills he’s built over decades, whether it’s handyman work, moving help, or organizing tasks, all while working entirely on his terms. “The beauty is that retirees often have time flexibility that younger workers don’t, so we can take on those weekday tasks that others can’t fit into their typical workday,” he said.
5. Be an online expert
Retirees with solid institutional knowledge can sign up on a site like JustAnswer and make good money from the comfort of their own home.
Andy Kurtzig, founder and CEO of Just Answer, said: “Experts on JustAnswer.com who are verified and vetted and licensed in their profession or trade — from vets, accountants and lawyers, to dog trainers, RV mechanics and appliance repair techs — can make from $2,000 to $7,000 a month depending on the category and question volume. You can do the work anytime from anywhere, answering people’s questions from around the world.”
Kurtzig cited one platform expert, a former therapist and longtime etiquette trainer, who’s also an expert in exotic bird health and behavior. “She uses the $1,500-to-$2,000 per-month income she generates through answering questions related to etiquette and avian health to fund her nonprofit sanctuary for exotic birds,” Kutzig said.
He also points to a retired 62-year-old general contractor and home improvement expert on JustAnswer. “After retiring from his family business and having his children take over, he wanted a way to earn extra money while also still using his vast knowledge from his experience as a contractor/plumber/home builder/electrician,” Kurtzig said. “So far this year, he’s earned over $27,000 working a couple of hours a day.”
Should you set a work limit each week?
Retirees who work part-time in retirement say that laying down time guidelines is highly advisable.
“Even if you’re working for yourself, set some limits on the time you spend working or volunteering,” Weiner said. “Maintaining structure is important. There’s an excellent mental benefit to knowing you can occasionally relax, read a book, watch a movie during the day, or simply enjoy a happy hour beer with friends.”
“As one doctor recently told me, it is good to pay attention to healthy habits, including finding productive activities, but you also need to live your life,” he said.
Retirees also shouldn’t focus on how much they are working from an hourly standpoint; focus first from a financial perspective.
“Unless you feel like the side hustle or part-time job is impacting your life negatively and your health is deteriorating from it, retirement is about whatever you want it to be,” Levey said. “It’s about checking in with yourself — and maybe loved ones from time to time — to explore if the side hustle is going well or if it’s interfering with the goals you initially had for retirement.”