Should Older Adults Start a Business Before Retirement?

As life expectancy goes up, more people need to fund their later years more than ever before. For older adults, the quest for more retirement money and something interesting to do after retirement drives them ask this question, “Should I start a business now?” With improved health in the years 50 and over when compared to their parents and grandparents, diving into a new and potentially risky venture is much more enticing than in the past.

While the answer to the question, “Should older adults start a business before retirement?” depends on a huge number of factors, the general answer is, “Sure! What not?” For your particular circumstances, first decide if the automatic answer should be, “No.”

Why It’s a BAD Idea to Start a Business

Three main things make starting a business at 50+ a negative thing.

• Health issues
• Comfort with financial risk
• Ability to actually run a business

Most types of businesses require quite a lot of work, occasional long hours, and stress. If your health is poor, starting one is probably not the right decision for you. There are some that offer a more laid-back lifestyle but still bring extra money in. For example, selling crafts at occasional shows or online might be perfect for you. Freelance writing does not require long hours if you choose not to work so much.

Retirement requires a lot of money to live comfortably and take care of continuing needs in case or illness or invalidism. Most business types have inherent risk because they require some type of investment to both launch them and keep them running. Self-employment may be easier because you can get started for virtually nothing on the internet.

Not everyone is suited or able to create a successful business. You need skills, knowledge, and the ability to offer service or products that people want to buy. You also need business skills such as marketing, accounting, and customer service capabilities. Owning a company or working for yourself is not for everyone.

Why It’s a GREAT Idea to Start a Business

It has never been easier to start your own business than it is today. The internet offers a wealth of opportunity for freelancers, niche marketers, and ecommerce sellers. Learning how to get started is not that challenging for most adults.

If you focus on lower risk opportunities and methods, you can protect your retirement nest egg while creating passive or active income streams and preventing that “on a fixed income” struggle many older adults deal with.

Be realistic about your abilities and energy level. Figure out something you enjoy doing and how it can be turned into a lucrative venture. Spend time learning everything you can about how to operate a small company or freelance career online. Then jump in and get busy. There is no time limit for new opportunities when it comes to small business success.