What does modern retirement income planning look like? For starters, Canadians are living longer than ever. Many people will spend 20 years or more in retirement. Then there’s the uncertainties of modern life. Island living, for example, comes with its own set of financial choices. Housing costs can be high on the Island, and retirees often need to decide whether to downsize, move into a retirement community, or stay in their own home.

Today, a good retirement plan isn’t about hitting one magic savings number and hoping it lasts your whole retirement. It’s really about putting three important pieces together:

1. How your money comes in
2. How much tax you pay
3. How you manage your day-to-day costs

In this article, we’ll focus on your income, especially simple and creative ways to boost what you bring in during retirement. Give it a read, or bookmark it for another day. These flexible ideas could add hundreds or even thousands of dollars to your retirement income each year.

How much retirement income will I need?

Retirement isn’t a one-time event—a plan that you set then forget. This is a new, multi-stage part of your life that deserves its own approaches and solutions, rather than just relying on your pre-retirement planning.

Here’s what we mean. In the early years of retirement, you might travel and pursue hobbies—activities you’ve perhaps been planning for and looking forward to for years. Later on, things could change when health and care costs may take priority. Living on Vancouver Island means considering things like:

• Costs for independent living or assisted living in Island communities
• Rent or mortgage payments, property taxes, utilities, and maintenance costs
• Inflation and unexpected expenses

What are “traditional” retirement income approaches?

Traditional retirement planning involves looking at income you can predict, along with any investments you have made and what tax you might need to pay. 

Predictable income from pensions and benefits

Start with the basics: CPP, OAS, any workplace pensions, Registered Retirement Income Funds (RRIFs), and other tax-smart savings. These help cover everyday needs, such as housing, groceries, and utilities, before you look at other ways to earn income.

For many Vancouver Island retirees, choosing when to start CPP or OAS can make a real difference, especially when combined with other income. Our advisors can help you figure out the best timing based on your lifestyle and income goals. You can also read our retirement planning article to learn more.

Investment income from smart strategies

In retirement, your investments may be less about growing your money fast and more about creating reliable income and keeping taxes in check.

Things like interest, dividends, and planned withdrawals from tax-efficient accounts can provide steady cash flow while helping reduce the tax you pay. An advisor can help tailor this approach to match your comfort with risk and your personal goals.

Hidden income from savings and benefits

Before we get into some creative income strategies, don’t forget about some easy sources of income hiding in plain sight. Often the biggest retirement “wins” come from managing your spending carefully, such as cancelling unused streaming or magazine subscriptions, pulling back on impulse purchases, and so on. Take a look at our article on “ninja spending” for some ideas. Think of every dollar you save as extra income. It can all add up to a very useful sum each month.

On Vancouver Island, seniors may find other savings opportunities through:

• Energy rebate programs or home insulation upgrades
• Seniors transit discounts
• Community centre membership benefits
• Grocery and entertainment promotions
• Utility or property tax relief programs for seniors

A careful budget review can uncover surprising opportunities to lower your cost of living—and keep more dollars in your account.

19 flexible retirement income strategies

Even adding a few hundred dollars a month can make retirement feel more comfortable, and many of these ideas can also be social, fulfilling, and adaptable to boot.

Income from home ownership

For some retirees, home equity is one of their biggest assets. With careful planning it can become a significant income source.

1. Build a secondary suite or legal rental. Adding a legal rental unit can create meaningful income while preserving value in your property.
2. Long-term renting of spare rooms. Services like places4students.com and Homestay.com can help you connect with students and tourists.
3. Short-term rental hosting (e.g., Airbnb, Vrbo). Keep in mind local regulations and licence fees
4. Downsizing to a smaller home and investing the proceeds for income.
5. Using home equity to help generate income (with professional guidance).
6. Co-living arrangements with friends or family to save on housing costs.

Income from passions and interests

Vancouver Island’s vibrant arts and outdoor lifestyle as well as its sense of community makes many of these passions viable for extra cash.

1. Dog walking and pet sitting
2. House sitting for seasonal residents
3. Crafting or making jam and baked goods, selling online or at local markets 
4. Teaching workshops on something you’re an expert in, such as arts, crafts, music, or local culture

Online and flexible gig opportunities

These are examples of things you can do from home and schedule around your life.

1. Participating in online research or focus groups
2. Editing and writing
3. Online tutoring or mentoring

Part-time and seasonal work

These ideas can bring income and some bonus social engagement, if that’s important to you.

1. Seasonal tourism roles, especially popular on the Island’s coastal areas
2. Tax season support work
3. Retail or hospitality part-time roles

Skill-based and community roles

Flexible work that matches your skills can also generate income and expand your social circle.

1. Bookkeeping, upholstery, sewing or repairs
2. Sports coaching or officiating
3. Community centre or non-profit facilitator roles

A creative retirement income example—Island edition

Imagine Tom and Linda, a couple in their early 60s living near Nanaimo. They:

• Downsized from a larger home to a smaller condo
• Rent out their spare rooms to summer tourists
• Tutor part-time online and in their community, teaching writing and digital skills

While their income mix still leans on CPP and investments, the extra earnings from rental and online work give them more freedom in their budget—especially during travel months.

Retirement income planning is about building a flexible strategy that changes with your life during retirement. Whether you’re already retired on Vancouver Island or are planning ahead, consider:

• Reviewing your income sources
• Exploring one new income idea this year
• Talking with a Coastal Community advisor to stress-test or update your plan

Small changes now can add up to big differences later, and even just the germ of an idea can grow into something valuable.