Passion meets pension: The rewards and risks of side hustles for retirees

With rising fuel costs, more rate hikes on the horizon and cost of living still biting, it’s no wonder Aussies are hunting for extra cash. The need for more income has hit every generation, including retirees. Westpac has found that more than more than 55% of retirees are earning an income through a side hustle or are considering starting one.

Recently, a user on Reddit posted about the side hustle their mother-in-law (MIL) has taken up. The recent retiree owns her home, which she rents out, while she housesits full time to “top up” her pension. She tries to line up her housesitting gigs back to back or she stays with friends or family during the in-between weeks.

Housesitting has been a great way for this retiree to have more financial freedom, but there are plenty of other options out there. If you’re looking for a way to top up your cash flow, or turn a passion into payments, we’ve put together a list of side gigs to help you. Bear in mind that managing pension payments with an income is a balancing act so do your research before trying any of these yourself.

What is a side hustle?

A side hustle is essentially a way of describing a secondary form of income. You can classify side hustles as anything you make money from in addition to your main income (salary, pension, etc).

Many people use their side hustles to boost their cash flow or turn a hobby into a job.

What side hustles can I do?

If you’re considering a side gig, your choices will depend on your lifestyle, skills, experience and interests. Here are a few popular options that you could choose from:

• Rideshare and delivery: Companies like Uber and Uber Eats always need more drivers. You could choose to drive people from place to place or deliver items to their houses.
• Pet sitting or dog walking: This is a great option for the animal lovers. You can hang out and look after pets while getting paid. You can sign up to do this via a service like Mad Paws, but you’ll likely be asked for a reference or referral.
• Start a market stall or sell homemade crafts: If you love crafting or creating, you could make some extra cash from it. Sign up to have a stand at your local market or use platforms like Etsy and Facebook Marketplace to sell your goodies.
• Monetise expertise from your former job: Anyone from writers to mechanics can build a business out of their home. Utilising previous experience can be the best way to add to your income stream. Beware that you may need certificates, safety checks or insurances to run a business from home, especially if it involves machinery.
• Become an Airtasker: For the handy men and women out there, there are always opportunities to earn money by completing jobs for other households. Airtasker is a platform for people to request hands-on jobs they may not be able to complete themselves.
• Have a nursery or sell plants: If you have a green thumb, you can put it to use by growing and selling plants, flowers, herbs and succulents. You could create a stall or sell your plants online.
• Become a census or election officer: If you’re looking for something occasional, you could sign up to be a field officer for government events like the census or elections. These are paid by the hour and usually don’t require any experience.

What do I need to know about side hustles?

The above options may sound appealing, but, there is more than meets the eye to make sure your side gig won’t land you in hot water. If you’re considering earning an income with a side hustle, there are some key questions you’ll need to ask yourself:

• Will my income affect my government pension? If you receive any type of government payments (i.e. a pension) you will need to report any money as income to Centrelink. Depending on how much rental income you earn, your government payments could be reduced or stopped. You can check how much you can earn before your pension is affected on the Services Australia website.
• Will my income affect my account-based pension? There may be limits to how much you are able to withdraw from your super depending on other incomes you receive. It is recommended that you speak to a financial advisor to discuss any restrictions.
• Will I need to pay tax? Any money you get counts towards your taxable income. Aussies can earn up to $18,200 a year before being required to pay tax, so if you receive other forms of income, ensure you meet your tax obligations. A side hustle may even require you to be a sole trader with an ABN. Speak to an accountant or financial adviser to find out what you are required to do.
• Do I have the right insurance? Regular home insurance might not cover you if you’re running a business from home. If you’re keeping stock in your home or if anyone coming to your home for business gets injured, you may not be covered.
• How will my income affect my partner? If your partner receives a form of pension or government payment, they may be affected. If their payment is based on household income, any money you make from your side hustle will be included in your household income. Make sure to update both your and your partner’s payment details.

Is a side hustle suitable for me?

Above all, if you plan to take on a side hustle, you’ll need to consider the day-to-day realities. Whether you are renting out a spare room or selling goods online, you’ll need to think about your space. For example, if you plan on selling physical products, do you have enough room to safely store your stock without it taking over your living area? You should also consider the impact on your lifestyle and other forms of income.