Many of the baby boomers, either out of a desire to be active longer or out of necessity, plan to work beyond the usual retirement age of 65. After 20 years or more in large companies, corporate jobs, and careers, many veteran retirees are reflecting, or taking early retirement from their previous companies and jobs, and branching out. A large and growing number of baby boomers are happily leaving traditional post-retirement employment to become self-employed. This growing generation of proactive baby boomers believe they are too young to fully retire, have started their own businesses, and bravely veered off into new fields of work. And all this, a moment in life in which other workers for others begin to think, with enough longing, about retirement.
Workers in the age group 55 and older now represent one of the fastest growing groups of self-employed workers in the US The total number of Americans age 55 and older who choose to be self-employed has increased 28 percent since 2000. Compared to this, the statistics for most other age groups show that the numbers are stagnant or actually declining when it comes to self-employment. , according to government data. Baby boomers and seniors now account for a combined 56 percent of the self-employed in the United States. Clearly, many baby boomers are using self-employment as an easy transition move, a bridge to retirement.
Many boomers also feel younger and more productive than previous generations at this age. With increased life expectancy and better overall health, baby boomers intend to work much longer than most previous generations. But, for the most part, they want to work on their own terms. That is why they are creating jobs that give them much more control over their own lives and much more personal fulfillment. This is precisely the reason why many of them choose to become their own boss. In their mid-50s, they’d rather work their own hours, perhaps from their own home, than work 15-hour days at corporate giants where work takes over their lives.
Large-scale company downsizing in recent years has also provided additional impetus for older workers to consider entrepreneurship. There’s a financial angle to that, too. Older workers may have to accept buyouts from their former employers, but without traditional pensions or retired health benefits, they can’t afford to retire. The biggest surprise, for shrinking baby boomers, is the high cost of health insurance. Without employer-subsidized group coverage from their corporate jobs, many are surprised by the prices when they start shopping for health insurance for themselves.
Whatever the reason for choosing this path, the good news is that most companies now have a new openness to outsourcing processes and hiring independent contractors or consultants to perform certain tasks. This helps create great business opportunities for people with experience in various fields, who choose to be self-employed.
Anyone starting a business should have a good business plan that explains exactly what and how they intend to do. People also tend to underestimate the money needed to get started. Estimate appropriately, remembering that lenders will expect you to pay 20 to 30 percent of the cost.