According to 2018 Bankrate.com survey, 20 percent of Americans don’t save any of their annual income, and those who do save aren’t putting away enough, according to many experts who recommend having $1 million in savings upon retirement. Those ages 55-64 have an average retirement savings of $120,000, while those ages 65-74 have a median of $126,000 saved in retirement accounts — just 12 and 12.6 percent of the million-dollar mark, respectively. This would appear to be at least one reason, among others, that many would-be retirees are not as prepared for this stage of life as they would like, or need to be, and struggle with sustaining their intended lifestyle. Years that have long been designated for cross-country RV trips, international travel, relaxing nights on the porch swing, and extended visits from the grandkids are often spent worrying about how to make ends meet. Whether you are falling short of your savings goals or you are financially equipped but not quite ready to say goodbye to the workforce, there are plenty of options for making money after retirement.
Uber, Lyft and Amazon Flex are all retirement-friendly driving-based jobs. Uber is a peer-to-peer ridesharing service available to anyone who has downloaded the mobile app. Uber drivers make their own schedules and can customize their hours as needed. Uber collects a 20 percent fee from each ride, and the rest of the earnings go directly to the driver, plus 100% of any tips. To be an Uber driver, you must own a vehicle, have a valid driver’s license and insurance, and pass a background check.
Amazon Flex is another driving option; however, it differs from the previous two. The service, which is managed by Amazon.com, offers opportunities for drivers to deliver a designated number of packages, using their personal vehicles, during specified blocks of time. Amazon promotes that Flex drivers make $18-$25 per hour.
After being in the workplace for decades, one inevitably amasses invaluable experience and knowledge in his or her field. Becoming a consultant in your field of expertise is a great way to leverage all you have to offer, often on your own terms. Let’s use Human Resources as an example. As a freelance HR consultant, you can provide support to an independent professional or small-to-mid-sized organization and assist in myriad tasks including payroll administration, on-boarding specialization, recruiting, and more. Two basic steps to get started are creating and/or updating your LinkedIn profile and a website, both of which can help you attract clients by becoming a discoverable resource. Old fashioned business cards aren’t a bad idea either! There are free and affordable tools to help you do all of this. Some of the great things about become a consultant are that they exist in virtually every field, you can get started quickly, and it can be done full-time or part-time.
No, we’re not suggesting you become a professional couch potato; we’re talking about caring for people’s children, pets and homes! Many families are in need of responsible adults to drop off or pick up kids up from school or daycare and transport them to activities, help them with homework, cook for them, or just spend time with them at certain times of day. Pet sitting and house sitting are gigs that can be picked up for extra money, too. Walking and feeding the dog or cat a few times a day, watering plants, and tossing a frisbee around are all manageable tasks that don’t take up much time and put extra cash in your pocket (or your retirement account). This is a common and accessible way to make money; you can find opportunities by asking friends and neighbors, looking at community bulletins, and using reliable, legitimate websites as resources.
One particularly nice thing about substitute teaching is that you decide when you want to do it. There are two types of substitute teaching: vacancy and temporary leave. Temporary leave is a long- or short-term absence. A vacancy is a position unfilled due to retirement, resignation, or other cause for permanent departure. In New Jersey, a vacant position is required to be filled within 60 days, so a substitute teacher filling this position could be looking at two solid months of work. Any extension past 60 days requires specific credentials/certifications, but regardless of the tenure, there’s no doubt that the experience is sure to fill your “second act” with variety and spontaneity. One day you might be subbing in a high school English class and in the same week you could end up in a second-grade classroom. There are two ways to qualify as a substitute teacher in New Jersey:
1. Hold a New Jersey educator credential (teacher, administrator, educational services)
2. Apply for a substitute-specific credential
All information pertaining to qualifying and applying to substitute teaching in New Jersey can be found in the Guide for Substitute Teacher Certification and Employment in New Jersey.
Translating or Interpreting
If you are fluent in two or more languages, becoming a translator or interpreter is definitely something to take into consideration. As a freelancer providing these services, you can set your own rates; hourly rates can range from around $12 to $40 an hour depending on where you are located. In New Jersey, the average hourly rate is around $35. Options are plentiful, as the need for translators and interpreters permeates governmental, medical/ hospital, educational and other settings. A good place to get started is on the American Translators Association website.
One of the most pleasant things about looking for “second act” employment is that you’re not starting from scratch; you’ve already honed skills that you can now leverage to your benefit in a fashion of your choosing. For example, a retired teacher can offer tutoring services, taking on as many clients as he or she wants and setting his or her own rates. People of all ages require different levels of assistance year-round, so tutoring is always in demand. While professional teaching experience is often preferred, it is not necessarily required. Provide your information to school guidance counselors, who often pass along tutor referrals to parents. Online tutoring and test prep jobs can also be arranged through websites such as Tutor.com and Smarthinking, where tutoring takes place in a secure online classroom.
Retirement often provides people with the time and perspective they need to finally pursue passion projects that have been pushed aside in the past. With an entrepreneurial spirit, one can certainly turn a hobby into a healthy source of income. Photography, writing, crocheting/knitting, cooking/baking and crafting are just a few examples of skills that can be transformed into lucrative small businesses. Etsy is a popular e-marketplace that provides creators with a platform to sell handmade wares spanning a wide range of categories, from clothing and accessories to home décor, art, furniture and much more.
For those less inclined to create but who have a way with people, getting into sales is a cinch, thanks to a wide array of direct sales organizations. With companies specializing in everything from beauty and cosmetics to clothing, beverages, pet food and more, there’s something for just about anyone. But this is not an industry to jump into with abandon; according to the FTC, “not all multilevel marketing plans are legitimate,” so it’s important that you do your research to avoid getting involved with Ponzi or Pyramid schemes. You can start with these tips from the Better Business Bureau.
Retirement often provides people with the time and perspective they need to finally pursue passion projects that have been pushed aside in the past. With an entrepreneurial spirit, one can certainly turn a hobby into a healthy source of income. Photography, writing, crocheting/knitting, cooking/baking and crafting are just a few examples of skills that can be transformed into lucrative small businesses. Etsy is a popular e-marketplace that provides creators with a platform to sell handmade wares spanning a wide range of categories, from clothing and accessories to home décor, art, furniture and much more. For those less inclined to create but who have a way with people, getting into sales is a cinch, thanks to a wide array of direct sales organizations. With companies specializing in everything from beauty and cosmetics to clothing, beverages, pet food and more, there’s something for just about anyone. But this is not an industry to jump into with abandon; according to the FTC, “not all multilevel marketing plans are legitimate,” so it’s important that you do your research to avoid getting involved with Ponzi or Pyramid schemes. You can start with these tips from the Better Business Bureau.
While being a librarian requires a Master’s in Library and Information Studies, being a library assistant requires only a high school diploma. A library assistant helps librarians acquire, prepare, and organize materials, as well as performing other tasks needed to help run a library. This job consists of providing mostly clerical support, making sure all materials are organized and accounted for. Responsibilities can include checking books in and out, collecting fines for lost, overdue or damaged multimedia, and placing materials in their designated spots. This job pays roughly $12-$14 an hour on average. Here’s how to become a library assistant, according to the Bureau of Labor Statistics.
If you are good with food, people, and enjoy the hustle and bustle of the kitchen, you might consider becoming a catering assistant. Catering assistants help caterers with both kitchen responsibilities and guest service. Responsibilities include things like basic food prep, transporting materials, keeping things clean and orderly, and serving guests. Being available on weeknights, weekends and holidays is key to booking jobs in this industry, and keep in mind it also requires the stamina to work before, during, and after each event. Being a catering assistant might not be the most relaxing way to spend retirement, as it’s certainly on the more physical end of jobs one might take on at this stage, but it’s sure to keep things exciting!
Many people who are close to, or already in retirement choose to hold funds safely in an IRA CD. If this is something you’d like to learn more about, stop by one of NVE Bank’s convenient neighborhood branches located throughout Bergen County, or call us at 1-866-NVE BANK (683-2265) for information on retirement account options, including our current 46-month IRA CD special*.
Everyone’s retirement savings goals differ and have as much, if not more to do with what you spend as what you save. As with all financial decisions, the first step for each individual is to consider his or her own specific situation and goals and take it from there!
*Annual Percentage Yield (APY) is
effective as of 2/11/19 and subject to change without notice. Penalty for early
withdrawal. Limited time offer. Other terms and rates available. Fees could
reduce earnings on the account. Minimum
amount of $5,000 is required to open this account. Maximum amount of $250,000
per tax ID. Interest payments are
rounded to the nearest cent. As a result, low balance accounts may not be paid
interest. Available only to persons who reside or work in New Jersey. Your contributions may be tax deductible.
Consult your tax advisor. NVE Bank is not responsible for any typographical