At one time when you hit your 60s you would hang up your work suit, slide tired feet into some slippers and snuggle up on the sofa watching daytime TV or potter in the garden. Nowadays it is a whole different story, as the generation approaching retirement in Britain are showing no signs of slowing down. It appears that the traditional retirement options are being swept aside.
In 2017, Barclays research revealed that the over-55s are becoming the UK’s fastest growing group of new business owners. In the last decade, the proportion of over 55-year-olds starting their own business has risen by 140%. This popular new trend in baby boomers becoming entrepreneurs in later life has coined the unflattering name Olderpreneurs.
Why set up your own business later in life?
There are many reasons why these over-55s are venturing out into the unknown territory of self-employment. This could be from redundancy or looking to change jobs. This combined with the shallow pool of vacancies available for the more mature, making going alone seeming an attractive option.
Or simply many of these olderpreneurs are wanting to reap the advantages of being their own boss.
What are the advantages of starting your own business later in life?
There are many advantages to starting your own business in your later years; the freedom to venture into a career of your choice, work where you want and however many hours you want.
Living your best life
Some olderpreneurs set up their own business to embrace a hobby or passion to have a more rewarding and fulfilled career. Others go it alone to have more control over their life; allowing them to schedule work around themselves rather than fitting into the corporate 9-5 hours and the limited holiday entitlement. Freedom and control.
With all the twenty-something entrepreneurs, like Mark Zuckerberg (Facebook), Matt Mullenweg (WordPress) and Pete Cashmore (Mashable) hitting the headlines, it’s easy to get blinded into thinking entrepreneurship is a young person’s game. However, this is far from true and if you don’t believe us check out this list from Entrepreneur of successful olderpreneurs.
Olderpreneurs are undoubtedly having immense success within the UK business world. Studies have shown that if you're over 55 years old, you are twice as likely as your counterparts who are under 35 to launch a high-growth start-up. Starting out a business later in life can also be more accessible. This is due to having more worldly experience, a broader number of contacts and more savings to fund the business. Many people receive an inheritance from parents around the ages 50-60 which they use to fund their venture. Being financially stable enough to survive without a regular income in the initial stages of setting up a business can be vital. This can be where younger entrepreneurs can fall short if they do not have investors backing them.
Starting a business in your later years can be great for your health if you maintain a good balance of work, rest and play. This is because keeping an active brain and consistently learning new skills can help your brain to stay sharp and avoid cognitive decline, which can be common in later life. Having structure in your day, a purpose and activities can help your body to stay active and healthy. Many studies have shown that early retirement can cause cognitive decline and other health problems. You can read more about this and how to avoid it in our blog ‘Is retiring early bad for your health?’ - here.
Is starting your own business right for you?
Starting a business isn’t for everyone. It’s likely to be a rollercoaster ride of emotions, hard work, financial risks and determination and no guarantee of success. So, it’s important to thoroughly consider all the risks and discuss the financial implications with your financial planner and partner.
Whether you are setting up an independent TV production company, a marketing consultancy or a café on Brighton seafront, it could be incredibly life-changing and a positive step to creating a more fulfilling and rewarding career and life.
Your Capital financial planner will be able to help you to create a life plan. Using FutureMap™ technology we will be able to illustrate the impacts that different scenarios could have on your finances. This insightful process will help you to identify if you can afford the venture without sacrificing your lifestyle now or in retirement and how you would fund it.
Capital has a great deal of experience working with business owners and entrepreneurs. We can act as a sounding board to discuss your venture or any concerns you may have.
This process will enable you to make an informed decision about how you would like to proceed and give your business a sound financial strategy and the best chance of success.
At Capital, we believe it’s never too late to try something new and follow your passions.
If you would like to discuss the idea of starting up your own business or consultancy with one of our financial planners, please contact us today.