Key Takeaways:
A growing number of older Americans are launching businesses after retiring, blurring the line between their working years and retirement while supplementing Social Security income with entrepreneurial ventures.
The number of entrepreneurs between 55 and 64 years old who incorporated new businesses increased 22 percent over the past decade, compared with a 0.6 percent increase in total population, according to Kenan Fikri, a senior fellow at the Economic Innovation Group, a public-policy research organization.
"It is a myth that entrepreneurship is for the young," said Jane Veron, chief executive and co-founder of The Acceleration Project, a nonprofit that supports small businesses. "Later-in-life business owners are blurring the line between their working years and retirement."
The trend spans income levels and industries. Margo Clayson, 68, of Inkom, Idaho, launched The Mighty Microgreen in her late 50s after taking an online class that required her to write a business plan. Her company sells kits for growing broccoli, buckwheat, alfalfa and speckled peas in small plastic trays. The business generates about $800 a month after taxes — a sum that has become more important since her husband Ron, 72, retired from his job as an insurance agent in January. The couple now lives on $3,043 a month in Social Security, with a $60,000 401(k) and $5,000 bank account reserved for emergencies. They have no debt but plan to sell their home because of the maintenance it requires.
Rob Perry, 68, of Warren, Vermont, took a different path. After retiring at 63 from a career as a software marketing executive, he and his girlfriend bought a screen-printing and embroidery shop for $115,000, splitting the cost and securing $50,000 in loans. Renamed Shirt Happens, the business now generates $50,000 to $60,000 in free cash flow annually. Perry, who has roughly $1.5 million in retirement savings and collects more than $3,600 monthly in Social Security, said the shop operates on tight margins because of rising rent and equipment upgrades. Still, the flexibility allows him to close early on good ski days or take extended trips to Europe.
Roger Smith, 58, of Keller, Texas, invested $430,000 — less than 10 percent of his net worth — into Back Nine Golf, an indoor golf-simulator franchise, after retiring from a 35-year career as a vice president at a large engineering and construction company. With a net worth of about $5.5 million, including $4 million in investment accounts, Smith said the business already exceeds expenses including his $2,000 monthly salary. He hopes to raise his income to about $10,000 a month to recoup his investment over the next couple of years. "I wanted to prove to myself that I could run my own business," he said.
Mike Gibbs, 78, and Peggy Gibbs, 76, of Pacific Grove, California, launched Pacific Grove Cares, a 501(c)(3) nonprofit focused on community beautification, in 2024 after winding down a youth entrepreneurship camp they had run for nearly two decades. The couple draws no salary from the organization. They own their 1,200-square-foot home outright and have about $2.2 million in retirement savings, with roughly 60 percent in stocks. Their monthly expenses run about $9,200, with 65 percent allocated to taxes, insurance and charitable giving through a donor-advised fund.
The risks of starting a business later in life are significant. Entrepreneurs may invest some or all of their savings into their enterprise, potentially putting retirement security at risk, Veron said. Small-business owners also need an exit plan — a task especially critical for older entrepreneurs with shorter timelines. "You want to make sure you get paid for the asset you've built," she said.
Perry, who is approaching 70, said finding a successor for Shirt Happens has been tougher than expected. Clayson is looking for a buyer for The Mighty Microgreen, though inflation and tariffs have raised the cost of supplies she imports, including plastic trays. Smith said he isn't sure whether to call himself retired because the term is a strange fit for someone who works 15 to 30 hours a week. "I guess I'm semiretired," he said.
This article is for informational purposes only and does not constitute investment advice.
