With jobs aplenty and Christmas around the corner, many people who have retired are thinking about returning to the workforce.
It may be because you miss the camaraderie of the workplace, the routine, or that you need to top up your pension. In fact, more than 600,000 over-65s are in the workforce, according to the Australian Government, with an even split between full-time (48.7 per cent) and part-time (51.3 per cent).
There are things to bear in mind, especially if you rely on the Age Pension as the main source of income: according to advocacy group National Seniors, for every $1 of work income over $490 per fortnight ($12,740 annually), a pensioner loses 50 cents of their fortnightly pension.
This means pensioners with limited savings can only work one day per week without having their pension income penalised. Retirees, whose Age Pension is determined by the assets test, may be able to work more without affecting their pension, according to National Seniors; more than three in five of people aged over 65 are on the pension.
If you receive an Age Pension, it may be worth talking to Services Australia about how any employment income could affect your entitlements. You could be eligible for the Australian Government’s Work Bonus, which reduces the amount of employment income that is applied to your pension under the income test.
If you are self-funded, getting paid means increasing your super for when you retire from full-time work. Here are some ideas for how to keep a bit of extra cash coming in:
Take in a lodger
If the kids have left home, there is money to be made if you take in a lodger – or if you go on that big trip, you can rent out your home.
Short-term rental platform Airbnb says Australia is home to one of the highest proportions of “hosts” aged over 60 in the world. One in five of the platform’s Australian hosts are aged 60-plus, and the average income across Airbnb’s senior hosts nationally is about $8,000 per year.
Talk to a financial adviser or Services Australia on the tax implications.
After-school care, family day care or babysitting
If you love being around children and meet the regulations, then there is money to be made babysitting or running your own day care or after-school care service from your home.
Just remember to consider any tax implications of using your home to generate an income, either currently or if you choose to sell your home down the line.
Embrace the gig economy
Become part of the “gig economy” on sites like Airtasker, Uber, or Menulog, and you can work as much as you want.
Dog walking can net you $26 an hour, and house cleaning up to $60 an hour. Airtasker lets you pitch for one-off jobs, such as putting together flat-pack furniture to help someone move home.
Uber and Menulog always have jobs available, and you can dictate how many hours you want to work – though keep in mind you may have to update your car insurance if you’re using your vehicle to earn money.
You may not be keen to re-enter the rat race after you retire – but if you’re looking to keep your finances topped up, there’s always something you can turn your hand to.
