An AARP retirement planning report found that 16% of workers over aged 50 are self-employed – 5.6 million. Approximately a third started their business planning after the age of 50. In greater numbers, retirees are enjoying the rewards of becoming business entrepreneurs -- whether it is the rewards of developing a business idea into a business concern or turning a favorite hobby into extra income.
Self-Employment During Retirement
Retirement is the time to enjoy more time with loved ones and on choice activities. A self-employment venture during retirement should be one that is personally fulfilling and can be successfully performed. A hobby enjoyed over the years can be developed it into a going business concern. This can include applying talents to the world of art, computers, gardening, merchandising, photography, or writing. The number of service and product trade opportunities is limited only by the imagination.
What are Your Business Skills?
For the senior who has completed retirement planning but does not have a business idea to start his business planning, in the words of Albert Einstein: “[t]he important thing is not to stop questioning.” What resources are available, e.g., skills, time, network, money?
For instance, create a skills list that includes proven abilities. Cross out any skill whose performance is not satisfying to the business owner. Those remaining are core skills that should be explored to match up with business ventures. A passion for gardening can translate into a starting a plant shop or writing articles or speaking to community groups on how to develop community gardening projects.
Local libraries often have small business books that highlight home-based, internet-based, and/or small production businesses. This will be great resources to match your enjoyed skills with a new business.
After Retirement Small Business Financial Feasibility
The tax breaks for self-employed individuals can be generous for seniors. A retiree over age 65 can earn as much money as possible without losing any Social Security benefits. Workers under 65 can earn up to $14,160.00 (for 2009 and 2010) before Social Security reduces income by $1 for each $2 over the limit that is earned.
Before launching the business consider the retirement income and debts. A good retirement plan would include at the basis a primary residence and good vehicle that is free of the interest of financiers. Many retirees impacted by the 2007 recession, are holding fixed income from low interest bearing (low-risk) financial products, pensions, and/or resources from government-based senior benefits plan. How soon will inflation impact retirement income? After retirement work can help relieve some senior’s money concerns.
Retirement was designed to secure a senior with a time during their life to relax from the demands of the labor markets. This has been earned. While retirement brings the opportunity to pursue business ideas that were only dreamed of before. Work after retirement should be made to be as enjoyable as possible.
References:
- "Retire - And Start Your Own Business," by Dennis J. Sargent & Martha S. Sargent (NOLO) (2008).
- Social Security Online Retirement Planner, Social Security Administration.
General Disclaimer: This article is for informational purposes only and should not be used as a substitute for tax or legal advice.
Vanessa Cross - Vanessa Cross is a freelance writer who writes about international trade, business law and small business development issues.
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