In general, the generation coming into retirement now has less money set aside, and less chance of a pension than previous generations.¹ If you helped put the kids through college, you’ve paid significantly higher costs, reducing your own opportunity to save up. You’re also likely to find that monthly social security payments won’t be enough to rely upon. As a result, many potential retirees are looking at ways to keep on earning.

Indeed, 82% of people in their sixties are planning to work past 65, or are already doing so.² Although not without risks, one method of trying to make sure your retirement doesn’t outlast your money is to start a retirement business. In fact, people aged 55-64 started 25% of new businesses last year.³

If you’re considering starting a business in retirement, here are a few suggestions:

• Having a business plan, and take your time frame into account. Writing a plan will help to define whether your business idea seems viable while analyzing the potential marketplace. If you're planning to borrow money-note that this may run counter to the concept of making extra income in the short term-count on it that potential banks and lenders will ask to see that plan. Also, remember that you have only so many years to go before you will either have to pass the business on, sell it, or close it. That could impact your succession planning (e.g. who will take the business over), taxation, leases, licenses and many other practical matters. 
• Consider partners who can complement your skills. Instead of doing it all on your own, consider working with other people to help jumpstart your retirement business. This will help ensure that the business can be successful after you're not around to run it. If forming a partnership, use a business lawyer-it will be well worth it in the event that one person wants to sell, or gets sick, or passes away. 
• Consider focusing on a hobby and using new technology. In your next working life you may want to start a business doing something you've always enjoyed, like dog-walking, antique dealing, crafting, or home baking for example. Also consider how internet startups can open up commercial avenues that may not have been available to you previously. Consider renting out room or a spare weekend house, cleaning, renting out your car, or becoming a delivery driver. These options could be a good way to make money with out dedicating all of your time to the success of a business. 
• Look at low investment enterprises. The American Association of Retired People offers some advice. You could try, "Consulting, starting an errand-running service for seniors, writing family biographies, reviewing building plans for clients, planning parties, acting as a personal secretary for small businesses that don't have assistants, setting up a computer help service-these are a few of the businesses you can start for less than $5,000." 
• Make sure you're protected. Protecting your new business with insurance for liability in case you get sued, and disability insurance in case you or your partners get sick. Illness is greater likelihood in your senior years, so insurance is important. you can find more information on starting a retirement business and protection here. 

Above all, make your experience into an advantage. It’s very possible that, with everything you’ve learned in your previous careers, you’ll make a great boss and a highly skilled entrepreneur. Figure out how much you really need to earn in your retirement to be better financially prepared. Consider consulting a financial professional before starting your own business to make sure you have the right protection in place. Make that plan, find those customers, and get started on a new path that has the potential to fulfill your retirement in multiple ways.

^{1 Steven Miller, “Generations View Different Retirement Paths,” Society for Human Resource Management (SHRM.org), May 3, 2014.}

^{2 Teresa Mears, “11 Tips for Starting a Business in Retirement,” US News & World Report, Jun 11, 2015.}

^{3 Abby Hayes, “How to Decide If Your Should Run a Business in Retirement, US News & World Report, Apr 13, 2016.}

^{4 Jane Bryant Quinn, “Need Extra Cash? Start our Own Business," AARP Bulletin, Jan. 18, 2013.}