Canadian seniors who are eligible have begun receiving their one-time COVID-19 payments, financial aid that is much needed for those on a tight budget. The global pandemic rocked the stock markets earlier this year, and as a result many seniors' retirement savings have taken a huge hit, with massive losses that for some, will be difficult to make up within their lifetime. To add to this financial strain, many have been paying more for groceries, prescriptions and other essentials. Vulnerable seniors who have been socially isolating and have had to rely on deliveries (and the added delivery fee) have been especially affected.
CTV News reports that approximately 6.7 million seniors were eligible for the Old Age Security pension and will receive a $300 payment, while 2.2 million seniors were eligible for the Guaranteed Income Supplement and will receive an additional $200 payment. While the financial aid is welcome and needed, it is important for those receiving it to remember that, depending where you live, it may be considered taxable income, and so a portion should be set aside for tax time.
While the government aid is helpful, the reality is that it's not enough for the many seniors struggling to find the wealth needed to support their retirement dreams. Here are some other ways to supplement your income in retirement:
For those seniors who own their own home, HomeSharing is a great solution to fill the gap and provide the financial support needed to live a comfortable, secure retirement. At HomeShare Alliance, we encourage seniors to rethink retirement! We help homeowners looking to offer a room in exchange for monthly rent, peace of mind, security, or 10 hours of weekly household support by connecting them with vetted housemates who are a good fit. If this is of interest to you then we encourage you to reach out to us directly to learn more!
Turn Your Hobby into a Side Hustle
Side hustles aren't just for millennials! Many people are turning their hobby or other passions into income in their retirement. Love canning? Why not sell your jam, pickles and other items locally? Enjoy sewing? Make and sell facemasks through a community Facebook group. Love music? Consider offering virtual piano lessons to local students who are off for the summer and stuck at home. With some creativity and gumption, the possibilities are endless!
Canadian parents are in a bind. They need to work, but with daycares and summer camps opening up and COVID-19 cases on the rise, many are hesitant to send their children, even with reduced numbers and extra precautions. If you know a neighbour, family member or friend who is in this situation, consider offering to babysit their children a few times a week to take the pressure off the parents. If this interests you, it's important to do so safely. Consider reading this article by Today's Parent which offers safety tips and also poses questions that parents often ask before hiring a babysitter.
In tough financial times, it's important to get creative! Look at your retirement plans with flexibility and positivity. If you (or someone you know) could use a bit of a buffer with existing budgets, then consider the different ways out there to earn extra income in your retirement.