Why Become an Encore Entrepreneur?

With longer life expectancies and changing views on aging, the transition into a traditional, completely leisure-based retirement is shifting. Research shows that maintaining a sense of purpose and staying mentally and socially active improves overall health and well-being as we age.  Maintaining a sense of purpose and staying mentally and socially active can be found in volunteering, perhaps in working a part-time job. or starting a business – often called an “encore” career, which lets you use your decades of experience for extra income, social connection, or personal fulfillment. 

At 55, 65, or even 75 years old, starting a business lets you use your lifetime of skills while choosing a pace that fits your lifestyle. Many options require low startup costs, can be run from home, or draw directly on decades of professional experience.

There are three main reasons why you might consider taking the business startup plunge after retiring:

• You need extra money.
• You want to pursue your passion.
• You need structure and autonomy

Income Supplementation

If you were laid off or forced into an early retirement, you may feel like you need to supplement your savings with a new income stream. Starting up your own business can help you:

• Keep up with inflation. Or better yet, outpace inflation and the current increases in the cost of living.   As prices rise many retirees and those considering retiring are concerned about the ability of their investment portfolios to grow enough to supply retirement income for the coming decades.
• Maintain your pre-retirement lifestyle. You may be looking at spending 30 years or more in retirement and maintaining your lifestyle will require the same type of growing income you experienced with regular paycheck raises earlier in your career.
• Provide for an extended family. The extra money from a business could enable you to financially help your adult children, grandchildren, and aging parents, without making as big a dent in your own lifestyle.
• Pay off mortgage debts. Many boomers are heading into retirement still owing substantial sums on their home mortgages. If you’re one of them, paying down those debts can provide more financial security as you age.
• Necessity.  If you were laid off or forced into an early retirement, you may need income and your job search has not gone well.

Pursuing a Passion

For some, starting a business is something they do simply because they never want to sit still and are always searching for new challenges. Three common motivating factors for launching a business venture are:

• To realize a dream. Whether you loved your job or considered it just a paycheck, building your own business can be a fresh opportunity to throw yourself into something you truly care about.
• Being more flexible and taking control. While launching a startup takes a lot of time and effort, you’ll be in charge, which gives you the flexibility to work on your own timetable. Once your business is established and you can delegate tasks, you’ll have the freedom to take those three-day weekends. Or not!
• Investing in yourself. Get better at what you do by taking classes and enhancing your personal brand. Your business will have a greater chance to prosper which will pay off with increased financial security.

Need for Structure and Autonomy

If you dislike your job, you may be looking forward to retirement.  No more micro-management, doing whatever you want to do.  It may sound enticing, at least initially, but many individuals have difficulty handling those eight plus extra hours per day. The loss of structure can lead to days of scrolling cell phones and computers.

• Escape from the “Workplace Mismatch”  Early retirement and becoming an entrepreneur may  be born out of pure necessity or self-preservation. Traditional office environments heavily reward linear compliance, sustained routine attention, and strict organizational hierarchies.
• Rejecting Micromanagement: Many leave standard jobs because they feel misunderstood, micromanaged, or are passed over for promotions due to non-traditional organizational habits—despite having high creative output
• Structure and Accountability: Some individuals need structure in their life, and a job or career has provided this structure for decades. For those with ADHD the loss of structure and accountability exacerbates their symptoms.  Before or after retirement age, launching a business allows both neurotypical and neurodivergent individuals to channel their unique traits into a purposeful and engaging project.
• Ending Frequent Burnout:   If poor job matches or constantly “masking” ADHD symptoms to conform to corporate expectations has led to extreme fatigue, paralysis, and severe professional burnout, starting your own business may provide the autonomy you crave.