Five ways retired homeowners can boost their income

According to the latest analysis, retirees are no exception to this, with later life lender Canada Life reporting 30% of its equity release customers needed to tap into funds in their home to pay for day-to-day living costs.

As many as 49% wanted to clear their current mortgage.

Meanwhile, separate analysis by equity release broker, Equity Release Supermarket, revealed searches for ‘how to earn extra money’ increased by 50%, while ‘how to make money on the side’ were up 22%.

Many look forward to retirement as a time of relaxation, but it appears to be a time when many are looking for ways to find extra cash.

Alice Watson, head of marketing communications at Canada Life UK, said: “As the ongoing cost-of-living crisis unfolds, many customers are taking stock of their finances, including the wealth tied up in their homes.

“The variety of motivations for releasing equity highlight the flexibility and accessibility of the options available, allowing homeowners to enjoy their retirements in a way that best suits them and their families.

“However, equity release is a lifelong financial decision, so it’s vital people seek the help of a financial adviser and discuss their decision with their loved ones before taking out a product.”

Although equity release is one solution for retirees who are looking to boost their income, there are other ways too.

Equity Release Supermarket has flagged up a few options for earning extra money with minimal labour or effort.

1. Rent out driveway as private parking space

If you live in the city centre or near a football stadium, shopping centre, or music venue, you could bolster your monthly income by renting out your driveway as a private parking space.

All you need to do is list an unused driveway or parking space on online parking marketplaces, such as JustPark, YourParkingSpace, and Parkopedia, and then you can collect regular earnings when the nearby public car parks are overflowing. The closer you are to a city centre or point of interest, the more money you stand to earn.

2. Open a high-interest savings account

Organising your savings is not just a good financial habit to keep up, it can have a profitable benefit too. That’s why you should open a savings account with the highest interest rate you can find.

If you have extra income that you won’t need to use for six months or longer, it’s worth opening a fixed-rate savings account.

Fixed-rate ISAs tend to offer a better interest rate than most easy-access accounts, netting you more money in the long term.

However, if you’d like the option to access that money at short notice without breaking any conditions, open an easy-access savings account. Don’t worry, you’ll still earn extra cash if you leave the account untouched for long enough.

3. Rent out spare rooms or empty houses

Whether the kids have flown the nest, or you just have more space than you need, renting out any spare rooms in your home can be a great way to earn some extra income.

Not only will this rental income support any remaining mortgage payments, but it will also help minimise the impact of increasing energy bills. SpareRoom is a great resource for researching average rental fees in your area, as well as offering an easy way to create a listing.

Similarly, if you like to head away most weekends, consider listing your empty home on a holiday property site, such as Airbnb. These short-term rentals can be a reliable source of income if you live near a holiday hotspot.

4. Release equity from a property

With equity release, you can unlock the value of your home without needing to put it on the property market, receiving a timely financial windfall.

For homeowners over the age of 55, releasing equity is an option if you want to bolster your later life income to better support your children, afford more expensive bills, or just generally enjoy a more comfortable retirement.

The amount of money you can release depends on property value, the age of the youngest homeowner, and the type of equity release plan.

You can also choose how to receive your equity release loan. This could be as a one-off lump sum or more commonly as a drawdown, which allows you to take regular or ad-hoc withdrawals whenever you need to top up your bank account.

If you want to get a better idea of the equity release plans available to you, we recommend speaking to a financial adviser or inputting your details into an equity release calculator.

5. Get cash back when shopping online

While it might seem counterintuitive to say that you can make money by spending it, cashback schemes can help you earn income on those essential purchases.

These rewards programmes such as TopCashback let customers earn back a percentage of the money they spend when shopping. All you need to do is install a cashback add-on to your browser, which will notify you when you’re browsing shopping sites with available cashback schemes on both big and small purchases.

Another useful money-saving feature when shopping online is discount codes. Again, browser add-ons such as Honey let you know if there are any discount codes applicable to the website you are shopping on. If so, Honey applies the best code directly to your shopping cart, saving money on your purchase.