Starting a business in retirement: 10 things to know in 2022

Starting a business in retirement is a path less traveled by many people, and while it may seem impossible at first, thousands of retirees start businesses each year, leveraging their experience and knowledge to make take off their little empire.

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At first, it may seem strange to have to start a business in a time that is considered your "Golden Years". Many tend to use this time to relax, travel, take up new hobbies, learn new skills, connect with friends and family, and some even continue to work as remote entrepreneurs. or independent.

While it's possible to make the most of your retirement, the bad news is that current economic conditions have pushed many former retirees back into the workforce. As the cost of living rises rapidly, in part due to the lasting effects caused by the global pandemic, many are beginning to find it increasingly difficult to live on their retirement funds and savings.

A 2022 report by the American Association of Retired Persons (AARP) found that approximately 1.7 million American retirees have returned to the workforce in recent years; this part of the population represents just over 3% of total American retirees.

The combination of the pandemic and prolonged shutdowns has caused millions to reconsider their position in the labor market. Some Americans instead decided to quit when they were ahead, leaving earlier than planned. Notably, around 3 million people took early retirement due to the global health crisis, which would later trigger a ripple effect in the labor market, which would see an exodus of workers leaving their jobs in droves, later known under the name of Great Resignation.

No matter which side of the fence you are on, starting a business at this time in your life is possible, and it only takes a little courage and modern know-how to get your business up and running. no time.

Why start a retirement business?

Age shouldn't stop you from owning a business or becoming an employer, in fact, it should only encourage you even more.

According to recent findings, the entrepreneurial landscape has slowly but surely changed in recent years. In 2019, about 13% and 6% of Americans ages 55-64 and 65-74, respectively, started a new business.

There are a variety of reasons why older Americans sought to start new businesses as they managed to enter their golden years. While some sought to start their business as a way to generate more wealth, others did so to make a difference in their community.

Starting a business at this age involves a little more learning than you might expect, but it gives you an edge because years of experience and industry-related knowledge can guide you towards entrepreneurial success.

Benefits of starting a business in retirement Generate wealth

As a working and operating business owner, you will have the opportunity to generate more wealth that can go directly into your retirement savings fund. Plus, instead of having to rely on other investments or savings plans, a business provides access to unlimited income.

Use rare skills

Some retirees like to start a business because they have few skills. Although much of our economy now operates on autonomous and digital aspects, your skills and knowledge may still be needed to solve some problems.

Better flexibility

Being a boss of any kind gives you more freedom and flexibility in your schedule. While a standard 9am-5pm job can have its benefits and financial security, it doesn't necessarily allow you to live life on your terms.

Create something new

Often retirees may not be as tech-savvy as their younger counterparts, but there are instances where they have been able to create something completely new and unheard of. These can be very far from each other, but it is possible to...