Baby-boomers with retirement within their grasp were the biggest losers in the Great Recession.
Whether you had an Individual Retirement Account or a 401(k), chances are you saw anywhere from one-fifth to one-half of your investment savings wiped out.
In a world when even during good times people tend to largely underestimate the costs of retirement, this loss of retirement support has been devastating to most individuals who were expecting to use it in the near future. Few alternatives exist that do not involve staying on at your place of work for another decade.
One, however, may sound promising to anyone with a little bit of energy left: start a business.
Starting a Business in Retirement is not Impossible
While the options are greatly limited within the subset of small business start-up profit serving as a retirement fund, it's certainly not impossible for early-stage retirees to make a decent living from a chosen venture in conjunction with Social Security, Medicare, and the small level of savings maintained. Something as simple as woodworking and selling such quality furniture at flea markets is enough to provide the extra cushion needed on top of entitlements. Indeed, such a venture could very well be part of a pre-existing hobby you were planning on expanding upon retirement.
More from GFC, Below
Or your retirement start-up may be more adventurous and outgoing, depending on how much energy and free time you wish to devote to it. For instance seasoned travelers may find it advantageous to their budget to start a part-time travel agency. Couples can conjointly manage and operate a franchise such as a deli-style fast food chain or coffee house. If the pep is there alongside a need for extra income – while the desire to stick around your job for another six year is not – such middle-of-the-road options serve as sufficient compromises.
Think Outside the Box
But do not hesitate to put your professional expertise to good use outside of your former place of business. A retiring member of a law firm may choose to start a home-based private practice in her senior years. A former computer programmer with a respectable reputation may choose to become a consultant. Remaining relevant is key to accessing such post-retirement opportunities, but for anyone finishing off a long-lasting career, there's no better time to remain familiar with your field than immediately after retirement.
Depending on your desired standard of retirement living, there's sure to be one or even several opportunities for establishing a late-life start-up that can serve to take care of your needs. It's probably not your ideal retirement, but neither was sitting around doing nothing on top of a big bank account. While work should not be welcome in retirement, staying active is essential, so why not make some money in the process?