Why Starting a Business After 50 Will Improve Your Retirement Future
Could you use some extra income for retirement? Even if you’re short as much as a million dollars, you don’t need to reconsider your retirement goals. One way you can keep yourself on track – or even exceed your target – is by starting a business. Even if you’re older than 50, it’s important that you take this option seriously.
First, let’s look at a few of reasons you should definitely consider starting a business.
The Benefit of Extra Income
The most obvious benefit to starting a business after 50 is that the extra funds will help with retirement. I’ve talked about other ways to afford a prosperous retirement, and another very realistic one is to simply start your own business and run it. This goal is perfectly within reach for people who are 50-years-old or older.
Keep in mind, too, that you may be able to sell your business off at some point as well. Therefore, you’re not just looking at regular income, but the possibility of an eventual windfall if you find a buyer for your business in the future.
Doing Nothing Is Overrated
Even if you don’t need any extra income for your retirement, I’d still recommend you think about starting a business. That’s because studies show that working can actually keep you healthier than taking it easy.
Here’s what Karen Kaplan reported on the matter in that article:
“Researchers from the University of Miami and their colleagues examined data on more than 83,000 Americans who participated in the National Health Interview Survey between 1997 and 2011. All of them were at least 65 years old when they were interviewed, and 13% of them were still working part time or full time. The majority of these workers — 61% — held white-collar positions.
Compared to people with white-collar jobs, those who were unemployed or retired were 2.75 times more likely to report their health as “poor” or “fair.” (The other options were “good,” “very good” or “excellent.”).”
You may have read something like this before. It seems like there are countless other studies that agree: when you give up work, your health may take a hit.
However, by starting a business of your own, you can get the dual benefit of making some extra money while also making the rules. You don’t necessarily need to work a 40-hour week or otherwise work normal hours to make extra money and experience the benefits of working.
You’re Not Alone
Finally, one more benefit of starting a business at your age is that you’re not the only one doing it. In fact, Andrea Atkins of Grandparents.com writes that your age range contains the most new entrepreneurs:
“According to The Kauffman Foundation, an organization that studies entrepreneurship, the age group starting the greatest number of new businesses? Those 55 to 64.
Not only that, but the over-50 set is looking differently at the retirement years, says Michael Chodos, associate administrator for entrepreneurial development with the United States’ Small Business Administration. “Folks are coming into their second acts healthy, with vast experience and see another 30 years in front of them. They’re not satisfied with the definition of retirement as being ‘done.’”
There are plenty of resources made just for your demographic. Aside from this piece, you can find guidance from:
- Re-Branding Yourself After Age 50
- 6 Tips for Starting a Business After Age 50
- Over 50, Female and Starting a Business
- 7 Steps to Starting Your Own Business Over 50
Alright, hopefully, it’s now clear that starting a business after 50 is doable and has its benefits. Now, let’s look at some of the unique advantages you have given your age.
You Have Time
If you’re already retired, then it goes without saying that you have plenty of time on your hands at the moment. Most entrepreneurs don’t have this enviable advantage. Instead, they need to hustle after their 9-to-5 or on the weekends.
While you may still have plenty of other priorities during your retirement, you most likely have sufficient openings in your schedule to begin the process of starting a business.
Even if you’re not retired yet, you’re probably either an empty-nester or your children are past the age where they need constant attention. Either way, you have more time than most for starting a business.
You Have Experience
Another huge advantage is that you most likely have at least 25 years of experience on your side. This, alone, is all you need on your resume to begin working as a consultant. You may become perfectly satisfied with your role as a freelancer, but you could also turn that into a full-fledged business with employees, a book deal, podcast, etc.
All this experience also means you know yourself very well. You know what you like to do for work, what you don’t like the types of customers you like working with, etc. Again, this is an advantage that most entrepreneurs would kill for. Many get their businesses off the ground only to find out they don’t actually like their own idea.
You Have the Funds
Yes, we began this piece out by talking about how starting a business would be great for your retirement goals. However, you probably still have enough money to get a business off the ground at the moment.
It’s never been cheaper to start a business of your own. You could do it in the comfort of your own home. You can outsource much of the work. There is a whole host of reasons why you probably have more than enough funding at the moment.
If nothing else, there’s a good chance your mortgage is paid off. You most likely aren’t drowning in student loans like many of your fellow entrepreneurs either.
As long as you plan wisely and don’t make any impulsive investments, starting a business is both a very real possibility and something that could do a lot for your retirement, aside from just bringing in more money. Take time coming up with your business idea, and it might be one of the best parts of your retirement.