How to make extra income if you’re already retired but worried your savings won’t last

Saving enough money for a comfortable retirement isn't always easy, but it's an important financial goal for many people. The idea is that once you've left the workforce, you'll still need an income so you can pay for things in your life, like food, clothing, rent, hobbies and family activities. So, along with Social Security, investing money in a 401(k) and/or Roth IRA over the years is the best way to give yourself savings you can use in your golden years. However, for many people that money doesn't last them as long as they thought it would and they end up outliving their savings.

According to a 2019 Northwestern Mutual study, adults on average think there's a 45% chance that they will end up outliving their savings. This could mean that they may be forced back into the workforce or have to live with a family member who can take care of them.

However, one way to mitigate this risk is to take action before it gets to this point. Retirees who are concerned about having enough money to last the rest of their lives might first consider some community initiatives that will allow them to cut costs and retain more of their savings — like a reduced fare for public transportation for seniors or community programs that provide various services to seniors for free. But if that still isn't enough, and returning to the workforce full-time is not an option for you, you might consider taking on some side hustles to earn extra income.

Side hustles are pretty much for everyone — and there are a ton of creative ways for people to earn money doing things they're already good at. While most side hustles may not earn you thousands of dollars per month, especially when you're first starting out, it could allow you to rack up some extra spending money so your retirement investments can continue to grow.

Select asked Barbara O'Neill, a Certified Financial Planner and author of Flipping A Switch: Your Guide to Happiness And Financial Security in Later Life, about ways to earn extra money as a retiree. Here's what she said.

Finding another way to make money starts by thinking about your abilities, likes and dislikes and even the amount of time you have to dedicate to your new side hustle.

"Ultimately, considerations for earning extra income will need to be made on an individual basis," O'Neill said. "Retirees should consider their skills, their physical health and any other abilities when it comes to deciding which side hustles would be best for them."

Maybe you have a car and don't mind driving around — you might consider signing up to be an Uber or Lyft driver and pick a day or two each week to drive. Or perhaps your friends and family have told you that you have a knack for crocheting gorgeous sweaters, hats, blankets and scarves. It might make sense for you to try your hand at selling some of your creations on Etsy.

Creating an Etsy shop is one way you can make some cash by selling homemade items. So retirees who are crafty and have a talent for creating unique things can post and sell their creations in their online storefront. But if creating homemade goods doesn't suit you, there are still other ways to explore selling things.

"Some people may sell items when they have a lot of stuff and want to downsize," O'Neill said. "They can use Facebook Marketplace or even have garage sales."

And, there are some apps that allow users to sell gently used clothing and accessories. You can use Depop or Mercari to take photos of your items and list them for others to purchase. Most people who resell their clothing won't earn a full-time income doing so (though, it can be possible to become a top seller on an app like Depop) but it might allow you to earn some extra spending money.

Airbnb has become a popular way for property owners to make additional income by turning a spare room or an extra unit into a short-term rental. If you have some extra space that you don't mind renting out to travelers who need to stay somewhere for a little while, signing up as a host on Airbnb and listing a space you don't even use anyway could be a lucrative way to earn you some extra cash. On average, Airbnb hosts earn around $924 per month, according to Priceonomics. Of course, this can vary based on your location, property, pricing and number of bookings each month. But over time, this could be a significant way to earn enough to cover at least some of your expenses.

But if you don't have a spare room to rent out, you could still use this approach with your car. Turo is an app that allows you to list your car as a short term rental for travelers or anyone in your city who needs to borrow a vehicle. This could be a handy way to earn some extra cash if you have a car that you don't drive often.

If you love animals and want to make sure you get your daily dose of exercise, you might consider signing up to walk dogs in your neighborhood through an app like Rover. Or, you could offer pet sitting services in your home if you need to keep movement to a minimum.

And if there's a topic you've built up a vast amount of knowledge of over the years — such as cooking, math, playing a musical instrument, knitting and more — you might consider tutoring others in the subject. If your schedule doesn't allow you to offer individual tutoring sessions, you might consider creating an in-depth course and selling it on a platform like Teachable or Udemy.

Running out of savings when you're already retired can be stressful and even terrifying, especially since you'll still need a way to pay for necessities like food, clothing and transportation. But if you can't return to the workforce full-time, side hustles may still provide an opportunity to earn any extra cash you may need.

You'll have to first consider your skills, health and any other abilities that you can use to your advantage. There are many possibilities out there, but it's also important to remember that it could take some time before you really start building momentum. With a consistent effort, you could start to see your bank account grow in significant ways.