Starting a Business in Retirement

Here are some of the challenges you may face in starting your own business in retirement, but there are also lots of benefits too. Make sure you have an appreciation and understanding of them both before deciding to take the leap.
If you’re thinking about starting a business in retirement, you’re not alone. According to the Kaufmann Foundation, the percentage of entrepreneurs ages 55 to 64 has risen steadily from 14.8 percent in 1996 to 26 percent in 2017.
There may be many different reasons why you might want to start a business in retirement. To generate an income, to remain socially connected, to have flexible working hours or to turn a hobby or passion into an income stream are just some of the possible motives.
But along with the excitement of starting a new business in retirement, there are some things that you should probably consider before you take the leap.
There are start-up costs to starting a business.
Are you prepared to put some money into starting your business? Registering your business, marketing your business, and promoting your business are just some of the potential start-up costs.
Where will this money come from?
When you’re retired, you need to carefully consider how you will fund your new business without putting your retirement nest egg at risk.
It takes time to start a business.
What can even be a more intensive investment in a new business is your time. To successfully launch a business, you need to not only offer a great product or service but also market and manage your business. Is this how you really want to spend your time in retirement?
If you’re planning on turning a hobby into a business in retirement, it can be a very different thing.
When you have a hobby, you are doing it for your own pleasure and enjoyment. You are able to do it when you want, where you want, and for how long you want. There are no imposed deadlines or demands of you or your talents.
When you are running a business however you’re now doing your hobby for someone else and they may be demanding. You may have deadlines to meet and possibly complaints to deal with. So the hobby that you initially loved could potentially become “a job.”
Subscribe to After 50 Finances, our weekly newsletter dedicated to helping you plan for a comfortable retirement even if haven't saved enough. Subscribers get The After 50 Finances Pre-Retirement Checklist for FREE!
You deserve a comfortable retirement.
Subscribe to After 50 Finances, our weekly newsletter dedicated to people 50 years and older.
Each week we feature financial topics and other issues important to the 50+ crowd that can help you plan for a comfortable retirement even if you haven't saved enough.
Subscribers get The After 50 Finances Pre-Retirement Checklist for FREE!
We respect your privacy. Unsubscribe at any time.
Your new business may impact others.
Running a business will likely take your time and energy. Now that you’re retired, did the people close to you possibly have different ideas of what they wanted to do with you rather than see you start a business? Do you have their support?
You should probably discuss your business idea with them. Let them know what’s involved and how this may or may not affect them before launching your business.
Running your own business is very different from working for someone else.
Yes, when you run your own business, you are the boss and get to make all the decisions. And yes, you get to also make all the mistakes. Being an entrepreneur is very different than being an employee and you need to be sure you are really ready for this.
A Tool to Determine the Best Time to Take Social Security Benefits
Don't leave thousands in Social Security benefits unclaimed by collecting at the wrong time.
Small businesses fail.
Unfortunately, many small businesses fail. According to the Small Business Administration, only 50% of new companies will survive five years. Is there really a demand for your product or service? Do you have the right skills and competencies to successfully run your own business? Before jumping in, just make sure that you’re prepared.
These are just some of the challenges you may face in starting your own business in retirement, but there are also lots of benefits too. Make sure you have an appreciation and understanding of them both before deciding to take the leap.
Reviewed April 2021
About the Author
Susan Williams is the Founder of Booming Encore, a website and social media network dedicated to providing information and inspiration to help Baby Boomers create and live their very best encore.
Sign me up for a comfortable retirement!
Every Thursday we’ll send you articles and tips that will help you plan for and enjoy a comfortable retirement. Subscribers get a free copy of the After 50 Finances Pre-Retirement Checklist.
Sign me up for a comfortable retirement!
Every Thursday we’ll send you articles and tips that will help you plan for and enjoy a comfortable retirement. Subscribers get a free copy of the After 50 Finances Pre-Retirement Checklist.
Popular Articles
- Comparing Retirement Housing Options
- How We Retired With Almost No Savings
- How Retirees Can Live on a Tight Budget
- 9 Things You Need to Do Before You Retire
- What You Need to Know About Long Term Care Insurance Before You Retire
- You Didn’t Save Enough for Retirement and You’re 55+
- Could Debt Derail Your Retirement? A Checklist
- Your Emergency Fund In Retirement: A Comprehensive Guide
- Managing Your 401k In Your 50s

Will You Be Leaving Thousands In Social Security Benefits Unclaimed By Filing at the Wrong Time?
We recommend a tool from Social Security Choices that can help you determine the best time to collect so you can maximize your benefits.
Click here to maximize your Social Security benefits.