Your Retirement in the Gig Economy 

Years ago, retiring meant stopping work completely. Unless you were in a field that allowed you to take on some occasional consulting work, retirement was retirement. Even then, working after you retired was tough. Most of the time, you stopped working and lived off your savings and investments. Today things can be very different. 

There is now a retirement gig economy of people who stopped working a regular 9-to-5 but who are taking on occasional jobs as they need them. This doesn’t just help pay expenses, but it can provide you with a greater sense of purpose and help you embrace your passions. 

Taking part in the gig economy allows for a more flexible retirement. You’re able to work when you want, in roles that interest you, and earn extra money while doing it. Many retirees find the flexibility of gig work refreshing when compared to their previous full-time jobs. It also helps you stay social and engaged with the working world, which is very important to many people. 

Why Take Part in the Retirement Gig Economy

As mentioned, many people participate in gig work after retirement for financial reasons. Lifespans today are longer and strong employer-provided defined benefit pension plans are much less common than they once were. That leaves people looking for opportunities to make extra money. Gig roles are perfect for this. They allow you to work and earn without committing to a full-time role.

An added benefit is that these jobs don’t require you to spend your time behind a desk. You can still have a lot of the traditional retirement lifestyle while earning an income. You can do flexible work, you can travel if you’d like, and you are still able to sleep in on most days (if that’s what you’d like to do, of course).

There are also many social and psychological benefits. When working gigs, you get to use your skills and help others, which can provide a strong sense of purpose. Also, depending on the gigs you choose, you’ll be able to meet other people and socialize, which has considerable mental health benefits. 

Gig Options for Retirees

When it comes to what sort of work you should do, that depends on what you’re good at, what you’re capable of doing, and what you enjoy. 

Some options include:

• Providing repair or “handyman” services. If you’re good with tools and able to help people out with tasks around the home, there’s likely a lot of opportunities to sell your services to the local community.
• Tutoring. Teaching others is a great way to share your knowledge and earn some income. It doesn’t necessarily have to be helping people with schoolwork either. If you have a skill (from playing an instrument to teaching a language to being a great driver), you may be able to get jobs teaching others.
• House sitter or pet sitter. When people travel, they often need someone to check on their home or their pets. If you’re good at caring for a home or love animals, this can be a great option.
• Gardner. Do you have a green thumb? Do you love caring for plants? Offering gardening services can be a great way to get outdoors and use your skills.
• Driving jobs. Anything from ridesharing to food delivery can be great gig work for those who like to drive and have a reliable vehicle.
• Selling crafts. People can make a lot of money selling their kitting, woodworking, or other crafts online or through stores or craft sales.
• Photography. Handy around a camera and have an eye for imagery? Selling photos online or becoming a portrait or event photographer may be ideal for you. 

Things to Consider in the Retirement Gig Economy

Tax considerations are important to keep in mind. When you earn an income in retirement, you may need to pay taxes, depending on your financial situation and how much you earn. It’s important that you keep track of your earnings and report them accurately.

You’ll also want to think about how your work could affect your social security benefits. If you are younger than full retirement age (considered to be 67 years old for those born in 1960 or later), earning income can reduce your benefits. Social security with deduct      $1 from your benefits for every $2 you earn, if your income is above a posted annual limit. This limit changes each year, so you’ll want to be aware of the amount.

You’ll also need to plan for how you will market your services and organize your work. In some instances, there are gig economy companies that will handle this for you. For instance, if you’re doing deliveries or selling crafts online, there are websites you can use to help you market and track orders. If you’re offering other services though, you’ll need to come up with your own strategies and systems.

If you want to take part in the retirement gig economy, think about what you’re good at and what you like to do, then go from there!