Extra cash straight to your pocket

21 Apr 2016

Retirement doesn’t necessarily mean golf and knitting. Increasingly, retirees are turning to startups to generate some extra cash for their hobbies. 

Recent research has shown that the 55 to 64 years age bracket is the fastest-growing group of entrepreneurs in Australia. Why? Because, despite being retired, many are looking to earn just a little bit of extra cash on the side. 

Along with the extra skills and maturity they have developed over the years, older Australians also have more capital to support their projects, which a lot of younger entrepreneurs don’t have access to. And of course, they also have the time to contribute to a growing business, while still being able to step back and leave it in the hands of fellow workers. 

For many seniors, the entrepreneurship is attractive due to the work-life balance. They’re retired, so they don’t want to go back to work, full-time or even part-time, they just want to invest in businesses and hopefully come out of the experience in a stronger financial position. 

But there are barriers

While the idea sounds novel, there are barriers in Australia for, what they're being coined, seniorpreneurs. The major one, of course, seems to be age discrimination and lack of government support. 

The other major barrier seems to be the amount of time seniors are prepared to invest in their startup and subsequently, the amount of years. While seniorpreneurs are happy to leave a lot of the business dealings to fellow employees, it’s important to also discuss an exit strategy. Of course, if you’re only there on a part-time basis, you’re already setting the startup up to function without you. 

Finally, the financial side also seems to be an obstacle. Being retired, there is no incoming cash to support the business so it is a risk. Always speak to accountants about whether it’s a good idea for you to be earning a bit of extra cash on the side, and consider taking on a mentor. They’re generally an invaluable tool. 

Remember, you’re meant to be retired

When looking to earn some extra cash, it’s important to remember why you retired in the first place and why you’re actually even thinking of starting to work again. There is always a reason someone moves into retirement so having this in the back of your mind will help you make decisions about starting up a new venture, and of course, the type of venture.

If you want to earn a bit of money by cashing in on your hobbies, great. You’ll be enjoying what you’re doing while bringing in some cash. If it’s a major business you’re looking to start, you may be barking up the wrong tree. 

Remember, you left the workforce for a reason. If you want to fill your days with something, make sure it’s something fun that you enjoy doing. Otherwise, why did you retire in the first place?