Retirement is generally a time that you spend at your leisure without having to deal with the hustle and bustle of working life. However, it is also a time when your annual income is likely to be lower compared to when you were in full-time employment.
This can be quite hard to get used to because your standard of living will normally reflect the amount of money you were earning whilst at work. The only solution to this problem is to either cut back on what you spend or alternatively generate a higher income.
If you don’t feel like you want to cut back on expenditure then you could think about starting a business with your pension or annuity income. This can seem quite daunting if you have never owned or ran a business before but there are a number of good reasons why your retirement could be the ideal time for starting a business.
If you can generate an income from your business, and after all that is the overriding aim, then you will be more comfortable financially. You will be more able to afford the things you used to buy whilst you were working, meaning you won’t have to cut back as much.
Age brings experience and know-how meaning you should be less likely to make the mistakes you might have made had you started a business when you were 21. You can draw upon the experience from your own working career ensuring you avoid any pitfalls you might have encountered previously.
Be your own boss
The best thing about running your own business is that you are the boss. Of course, this means unlike when you were working for a company and someone else paid you, now you are entirely responsible for the success (or lack of success) of the business. This can be a positive though, as it will provide a focus for you to do the things that will help the business succeed.
Low start-up cost
This does depend on what type of business you decide to start but there are lots of choices available which do not require a lot of money to get going. Think of jobs, tasks, or errands that people in your area might need and you should come up with a good number of ideas.
One thing you should not do (unless you are very confident of succeeding) is plow your entire life savings into a business idea. Instead, use a portion of your money to start something that you think will be sustainable and will provide you with enough extra money that it is worthwhile pursuing. If it doesn’t succeed, well at least you still have your pension income to fall back on and you have only lost the (hopefully small) amount of money you invested.