Many near-retirees view their upcoming retirement as a time to kick back, relax, and make memories with loved ones. But for some, retirement may offer the opportunity to work for yourself instead of working for someone else.

Entrepreneurship may allow you to supplement your retirement income. Starting a business may also help keep your mind sharp and your psyche engaged while doing the meaningful work you've always dreamed of pursuing. Here are a few reasons why retirement might be an especially opportune time to start a business.

Financial Stability

By the time you retire, you may have accumulated savings and investments that could also provide a financial cushion for your new venture. This stability may give you a long runway and may alleviate some of the most common financial pressures that accompany starting a business.

What's more, since you're already retired, you probably won't need to depend on your new business to provide your sole source of income. If you eventually decide your business isn't sustainable, you could wind it down without affecting your future as much as a younger person might.

Experience and Expertise

After a long career, you could have a wealth of experience, skills, and industry knowledge that may be invaluable assets for any business. You may have developed networks, insights, and leadership qualities that might contribute to your success. Many new entrepreneurs struggle to find their footing, losing valuable time in the process. By tapping your expertise and business networks, you might be able to hit the ground running.

Passion and Purpose

Retirement may give you the freedom to pursue interests you could have put on hold during a nine-to-five career job. Starting a business in retirement might let you channel your creative energy into something you're passionate about, giving you a greater sense of fulfillment.

Flexibility

Most retirees have flexible schedules since they're no longer bound by the constraints of a 40 (or more)-hours-per-week job. This flexibility may let you devote as much time as you need to your new venture. You could decide to pursue a seasonal business that might have you working for only part of the year and maintain the ability to take the rest of the year off to enjoy leisurely pursuits and recreational activities.

Tolerance for Risk

With retirement savings already in place, you may have a higher tolerance for risk compared to younger people who are still building their financial positions. This may make you more willing to pursue innovative business ideas and try something new. It may also make your business more resilient. You might not face the same pressure as younger entrepreneurs do to quickly turn a profit.

Legacy Building

For some, starting a business may represent an opportunity to leave a lasting legacy for your children and grandchildren to inherit. Building a successful business could be a source of pride and accomplishment, potentially enriching not only your own life but also the lives of your loved ones.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This article was prepared by WriterAccess.

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