650,000 Americans Over 80 Are Still Working — Here Are 2 Passive Income Strategies If You Don't Want To Join The Silver Workforce

In the U.S., the full retirement age for Social Security benefits has been incrementally adjusted based on a person's birth year, now reaching 67 for those born in 1960 or later.

But many people continue to work well beyond this age.

According to data from the U.S. Census Bureau, about 650,000 Americans older than 80 were working last year, representing an 18% increase compared to a decade ago. Nearly 50% of those 650,000 Americans worked full time. 

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Some people choose to work in their golden years because they want to. For example, Warren Buffett, at 93, continues to helm Berkshire Hathaway Inc. as its CEO, while 80-year-old Joe Biden is the U.S. president.

For others, the decision to continue working stems from financial necessity or a lack of adequate retirement savings. With rising costs of living, some people have no choice but to stay in the workforce longer.

After all, Buffett once said, "If you don’t find a way to make money while you sleep, you will work until you die."

With that in mind, here's a look at two passive income strategies that can bolster your financial security and pave the way for a more comfortable retirement.

Dividends

The timeless adage "buy low, sell high" has attracted countless people to participate in the stock market. But you don't have to actively trade stocks to make money. You can also collect dividends.

Dividends are payments made by corporations to their shareholders. They are a way for companies to distribute a portion of their profits back to those who hold a stake in the business.

By collecting dividends from high-quality companies, investors can sidestep the stress and uncertainty associated with attempting to time the market and instead benefit from a steady stream of passive income.

Business magnate John D. Rockefeller once said, "Do you know the only thing that gives me pleasure? It’s to see my dividends coming in."

The best part? Some companies manage to pay higher dividends over time. For instance, retail behemoth Walmart Inc. has increased its cash dividend every year since declaring its first annual dividend in March 1974. Global beverage titan The Coca-Cola Co. announced its 61st consecutive annual dividend hike in February, and consumer staples giant Procter & Gamble Co. has raised its payout to shareholders for 67 years straight.

All three are members of the S&P 500 Dividend Aristocrats — an elite group of S&P 500 companies that have raised their dividends for at least 25 consecutive years. Past performance is no guarantee of future results, but because these companies have demonstrated the ability to pay increasing dividends through thick and thin, they could provide a starting point for further research.

Rental Income

Real estate is often heralded as a prime source of passive income, but the "passive" part can be deceptive.

If you want to collect rental income the traditional way, you'd have to put together a hefty down payment, get a mortgage and buy a property. Given today's elevated home prices and high-interest rates, this is no simple task.

You also would need to screen potential tenants, prepare lease agreements and ensure that rent is paid on time. Chasing late payments and dealing with delinquent tenants is never fun.

At the same time, landlords are responsible for the maintenance and upkeep of their properties, which can require frequent repairs and updates.

The good news? You don't have to become a landlord to invest in real estate. For instance, many real estate investment trusts (REITs) trade on the stock market. You can think of REITs as giant landlords — they own income-producing real estate and collect rent from tenants.

REITs are required by law to distribute at least 90% of their taxable income to shareholders as dividends. This requirement makes them appealing to investors looking to earn passive income.

Crowdfunding platforms provide another opportunity for people to invest in a wide array of properties. They typically have lower minimum investment requirements compared to traditional real estate investments.

For instance, one platform backed by Amazon.com Inc. Founder Jeff Bezos now allows people to invest in rental properties with as little as $100 while staying completely hands-off.

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