To not reside on the premises of one's employer (used especially of domestic staff such as nannies, cooks, maids, etc.)
Our nanny used to live out, but now she lives with us.
2
To fulfill or act out a dream or fantasy or aspiration.
Jackie is going to fashion school to live out her dream of becoming a fashion designer.
3
To pass time or to pass the remainder of one's life, especially in a particular place or situation.
to live out one's days
He is paying $200,000 a year to live out his days on a cruise liner.
2 more examples
A quarter of a mile inland we came upon the holluschickie -- sleek young bulls, living out the loneliness of their bachelorhood and gathering strength against the day when they would fight their way into the ranks of the benedicts1904, Jack London, chapter 30, in The Sea-Wolf (Macmillan’s Standard Library), New York, N.Y.: Grosset & Dunlap, →OCLC:
In the afternoon, he will depart for Castel Gandolfo, the summer residence of popes, where he will remain until restorations are complete on the Vatican convent where he will live out his days.2013 February 26, Gaia Pianigiani, Elisabetta Povoledo, “Benedict XVI to Be Known as Emeritus in Retirement”, in New York Times: