Once upon a time, a 65th birthday meant collecting one last paycheck, throwing a retirement party and making grand plans to play golf, travel the world and anything else you’d put off until the 40-hour work weeks came to an end. But now, that formula is no longer quite so tried and true.
Today, more and more retirees are dismissing the idea of full-time relaxation and looking for retirement business ideas, instead. Many are concerned about outliving their nest eggs — whether they haven’t contributed as much as they would have liked to their 401ks or they’re nervous about rising health care costs, inflation and taxes. Others simply don’t want to retire, and they’re looking for a new outlet to keep themselves busy and fulfilled after they leave the full-time workforce.
While many turn to part-time or seasonal jobs, and many others focus on earning value from their previous investments, one retirement business idea promises the agency, flexibility and long-term potential that many of those options can’t offer: owning a franchise.
4 Reasons Owning a Franchise Is a Great Retirement Business Idea
While entrepreneurship has a reputation for being a millennial endeavor, the truth is that Baby Boomers are taking up the entrepreneurial yoke in droves. In fact, a recent survey from Guidant Financial found that Boomers account for 54% of small business owners and 43% of aspiring small business owners. Of those, 14% owned franchises, mitigating some of the risks, upfront costs and midnight oil of independent business ownership.
Here’s why we love franchise ownership for retirees looking to keep one foot in the professional world.
While there are bound to be long hours of hard work at the start, once franchises are up and running, with trustworthy management and staff, the owners are free to take a step back if they’d like, focusing less on the day-to-day operations and spending more time socializing, relaxing, or pursuing “retirement hobbies.” (Or, if too much relaxation is a stressful thought, owners can continue to keep themselves very busy with the minutiae of their operations.)
Even as we age, many of us continue looking for ways to do what we’ve been doing for 30-plus years: provide for our families. Whether you purchase the franchise with your kids or pass it on to them when you’re ready for a second retirement in 10 or 20 years, owning a franchise is a perfect way to jumpstart that family business.
Means to Out-Earn Inflation
With the inflation rate continuing to rise, according to Kiplinger, most financial advisors recommend retirees keep a significant percentage of their portfolios in stocks rather than cash. Similarly, putting off social security benefits as long as possible in order to take advantage of the 8% benefit increase for every year seniors delay is considered a best practice. But still, retirees need cash to live on, and keeping everything tied up in investments can make for a light checking account. Franchise ownership can provide a steady income to help cover living expenses while that nest egg continues to grow.
Community Involvement & Mental Stimulation
A 2014 MassMutual Survey found that 10% of retirees found themselves feeling bored and purposeless in retirement. And, sure, when our identities are wrapped up in our careers for our entire adult lives, it’s no surprise that retirement can leave us feeling a little lost. Further, studies have shown that a too-relaxed, aimless retirement can contribute to rapid cognitive decline. But, even more than temporary gigs and part-time jobs, franchise ownership gives retirees a purpose, a way to stay involved in their communities and consistent stimulation to keep their brains active well into retirement.
If you’re getting ready to leave the rat race and looking for retirement business ideas that will keep your nest egg growing and your creativity active, consider purchasing a franchise of a business you admire. It may take up some of the time you’d planned to spend lounging in that overstuffed recliner, but franchise ownership can be a highly fulfilling pastime with financial benefits to last you and your family well into your retirement.
Are you looking for opportunities to use your retirement to make a difference for the children in your community? We invite you to join the Little Land Play Gym family by opening a franchise in your area.
This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. If you are a resident of a U.S. state or a country that regulates the offer and sale of franchises, are receiving this message in one of those states or countries, or intend to operate a franchise in any of those states or countries, we will not offer you a franchise unless and until we have complied with any applicable pre-sale registration and/or disclosure requirements in the applicable jurisdiction. Our website has not been reviewed or approved by any other federal or state governmental or regulatory agency (domestic or international).