Many seniors are excited to hang up their work hats and clock out for their last time in the workforce. But some seniors aren’t quite ready to have total freedom and don’t necessarily want to work for a company. Starting a small business in retirement can be ideal for many seniors for numerous reasons, such as bringing in extra income and maintaining a social life. If you wonder why starting a small business when you retire may be the ideal time, continue reading to find out.
Bring in extra income
According to the Social Security Administration, the average Social Security check is $1,430 in 2021. Many seniors rely solely on their Social Security check for monthly income but have monthly bills that add up to be more than $1,400. Therefore, making day to day living more of struggle than a leisure you expect in retirement. When you start a small business in retirement, you will bring in extra income for utilities and everyday living.
Being a small business owner can help prevent you from any financial burdens you may face. For example, many seniors are shocked when they find out Medicare (health insurance) has a monthly cost. Therefore, many seniors do not adequately save for healthcare costs before they retire. If you have additional income from your business, you can remain financially stable while paying your Medicare premiums and other healthcare costs.
Keep a sharp mind
Your body is not the only thing that needs exercise; your brain needs it too! A way to keep your brain active is by starting a small business in retirement. Naturally, the human brain is expected to decline as you grow older. Senior citizens typically process information slower than they would have in their past, such as speech, thinking, and memory. Whenever you keep your brain active by working, you can help prolong a cognitive decline.
Staying mentally engaged in your business can reduce the risk of Alzheimer’s disease and dementia. A large study of nearly half a million small business owners in France suggests that delaying retirement and working in your later years can lower the risk of developing Alzheimer’s disease and dementia.
Many studies have indicated that entering retirement can have a negative impact on one’s cognitive function as early as age 60. Whenever you start a small business in retirement, you will continuously talk, plan, learn, and think every single day. Therefore, helping your brain fight off any potential cognitive decline.
Remain social
The University of California conducted a study which concluded that 40% of senior citizens experience loneliness. When you enter retirement, remaining social is essential for seniors to avoid those feelings of loneliness and can potentially help with depression.
Your old workplace probably helped you stay in a social environment, as colleagues surrounded you. You had to communicate with people daily and had tasks you must accomplish in a timely manner. Whenever you enter retirement with nothing but freedom, you might lose your sense of purpose.
Leaving a job often means you are giving up a part of your social life. If you need frequent social interaction, starting a small business in retirement might be exactly what you need. When you start a business, you will interact with employees, customers, and suppliers. Therefore, helping you remain social and active.
Final point
There are many reasons seniors start a business in retirement, and extra income, staying sharp, and social are just a few. Start business planning today if you have a passion and think there is a market for your product. The only thing that can stop you is you!