Boomers turn to entrepreneurship as new retirement strategy
There is one method to avoid outliving your cash: Work longer, all on your own terms.
You might not want to or manage to retire at 65 or 67, but just what exactly. If you’re carrying out work you enjoy within your own business, setting your own schedule, fulfilling goals you’ve set yourself — it could not even feel just like work. Pursuing their professional dreams while doing work for themselves has enabled many older self-employed workers to secure their financial future.
A recently available survey by AARP found ten percent of workers ages 45 to 74 intend to take up a business and 15 percent workers in this a long time already are self-employed. Some take up a business due to employment loss, others had already retired but weren’t prepared to fully stop working. Typically, self-employed workers within their 40s or 50s may spend nearly 2 decades doing work for themselves, the AARP study found.
Mary Parker, a 59-year-old entrepreneur, spent a lot more than three decades navigating two challenging industries before taking the helm of her own firm. After she was downsized from her job at a car manufacturing facility early in her career, Parker saw employment opening for a security officer.
Some individuals may have observed that as a step down from the managerial role she had held previously, but she saw the long-term potential of the positioning and began learning the business enterprise from the bottom up.
"Regarding career opportunities. You hardly ever really look at a security guard being anything apart from a guard. What I learned was the security industry is an extremely lucrative industry," she said.
While rising through the ranks, Parker thought she’d be most fulfilled running her own firm.
"Although my career in corporate America was very successful," she said, "I simply believe that if you work for other folks there are so many limitations."
Like many the self-employed, Parker centered on providing something. In 2001, she founded ALL(n)1 Security Services, located in Atlanta, which gives security personnel and technology. As CEO, she runs a multimillion-dollar enterprise with an increase of than 200 employees.
"What we see is that almost all of the people that start businesses later in life represent professional services," said Jane Setzfand, vice president for financial security at AARP. "Whether lawyers or accountants, data processing — that is commonly more of what we see regarding older self-employed workers."
What’s perhaps most encouraging is that the AARP study found almost all of the businesses successful.
"When you have the life experience, you almost certainly have a shorter pathway to achieving success, and that’s something we’re seeing," Setzfand said. "A lot of the people who responded inside our survey are profitable within their endeavors."
Nearly 75 percent of older self-employed workers surveyed by AARP indicated that their business made a profit in 2011. That may explain why nine out of 10 believe that it is not likely they have to stop employed in another year.
Parker certainly intends to keep running her business. Because of a diversified portfolio of retirement funds and property investments, she could chart a fresh course in retirement, but she’ll probably just keep working.
"When I’m prepared to retire within the next 3 to 5 years, financially I need not worry about what that may appear to be," Parker said. "I’ll not need to work, although I understand I will continue steadily to work."