Case study: income to help make Rick's retirement more enjoyable

Rick was looking for some extra income to help make his retirement more enjoyable. He was also was seeking some more structure in his week and some social contact.

A flexible income for Rick  

Rick met with Melinda from IncomeConnection who introduced him to a range of diverse ideas for earning extra income. He liked the idea of taking a portfolio approach to accessing an income from several sources. These include:

  • Listing his house on Airbnb when he goes on holidays and during peak times such as summer, Easter and long weekends targeting the holiday market. While his home is occupied by Airbnb guests he does housesitting nearby through a housesitting website (which he doesn't pay for). He earns $600 per night, net. Rick is in good company; 35% of Airbnb hosts in Sydney are aged over 50.

 

  • Registering with Mad Paws and Paws Shake to do pet walking and pet care for pet owners local to him who work long hours or travel, earning $25 to $40 per care session. Rick is great with pets, particularly dogs, and found this to be enjoyable as well as an income earner.

 

  • Registering for office work on Weploy and Sidekicker and for tasks on Airtasker, earning between $20 and $30 per hour.

In summary, Rick works as much or as little as he likes. The ‘on-demand’ nature of the work enables him to pick and choose which jobs he wants to do at any given time and he has a lot of flexibility in his week.

He likes the variety and the social interaction. He has met his goal of sourcing extra income to make his retirement more enjoyable. He also defers drawing down on his super savings which means they last longer.  If Rick wants to give this some focus, then he could earn $50,000 per annum. If Rick were instead looking for passive income, then another option may work better for him. 

I was feeling a bit lost when I retired and missed working. I missed the freedom that the regular wage gave me as well as the structure and social contact. My week is now set up so I have enough income so that I comfortable, as well as getting out and meeting people.

Rick checked out the impact taking this step would have on his age pension and tax. He also consulted with his insurer. 

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Notes:

If Rick wants to work full time:

Airbnb: $600 x 37 nights = $22,200

Pet care:

$25 X 96 sessions = $2,400

$40 X 50 sessions = $2,000

Office work/tasks:   

3 days per week

$25 X 21 hours X 46 = $24,150

($25 per hour on average, 21 hours per week, 46 weeks per year)

 

 Total: $50,750