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Starting a Business in Retirement: Retiree Business Ideas

Starting a Business in Retirement: Retiree Business Ideas

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Top Reasons to Start a Business After Retirement

Boost your income

Some retirees don’t have adequate savings, pension payments, or Social Security benefits for living expenses. They need to boost their income to make ends meet. Starting a small business can fulfill that need.

Americans 65 and older are more likely to be self-employed than adults of any other age group. This means that, as an older entrepreneur, you will be in good company.

Because of the limited (and generally low-paying)  jobs available for retirees, smart folks go ahead and blaze their own trail into entrepreneurship and self-employment.

Greater Financial Investment Return

When you invest a portion of your savings into starting a business, you have the possibility of receiving a greater return on your investment than traditional stocks or bonds.

Assuming an average 5% to 8% of return on your retirement savings, if you invest that same amount into starting a business, it could make 2X to 3X that amount in annual profit and tax savings. Plus, you are building a valuable income-producing asset.

Save your money

Starting your own income-producing company will save you money in two ways.

First, you will pay fewer taxes because you can deduct both startup costs and ongoing expenses (including housing, transportation, and utilities) from your tax bill. Read more in our article on how to save on taxes by starting a business.

Secondly, keeping busy making money will prevent you from over-shopping with all the extra time on your hands after you retire. Having fun and filling your time with online shopping, gambling, outings, and travel will quickly drain your nest egg.

Improve your health – mental and physical

The transition from working full-time to retirement can be challenging. Research has shown that retirement may increase the likelihood of suffering from clinical depression.

By keeping your mind active and building your company, your mental health will improve and you will have a more positive outlook. Also learning new things and meeting different people will spark your interest in life. Your brain will stay sharp as it expands its knowledge of business techniques and strategies.

Also by starting a business, you likely will be more physically active, which will help your overall health and can also reduce your healthcare costs.

Check out our in-depth post on how to protect your business idea from getting stolen — without a patent.

Grow your social life

Your new business will also serve as an important new social outlet.

Most seniors who retire and then decide to go back to a job do so mainly because they miss their colleagues and daily social interactions. By launching your new business, you will meet and interact with many new and interesting people, zapping the lonely and sometimes isolating feelings associated with retirement.



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