In a stunning report released by the U.S. Government Accountability Office it appears that most seniors will simply not have enough savings to enjoy the lifestyle that they enjoyed prior to their retirement. Even those who have a defined benefit plan (otherwise commonly known as a pension) will simply not have enough funds to enjoy a superior quality of life – and is some cases will not have enough to cover their day to day expenses.
This means that these retirees must look elsewhere for methods to supplement their incomes. Fortunately, their options are today much less limited than they were only a generation ago. There is a growing realization that the Internet provides people of all ages with new opportunities that might not have been present a decade ago – and that even those with skills that might be regarded as ‘traditional’ can do much to help them achieve that all-important peace of mind as they navigate the waters of their retirement years.
The key to leveraging these opportunities is to find that niche that will provide these retirees with the opportunity to not only supplement their savings – but also balance those supplemental earning opportunities with an enjoyment of their retirement years. For many people who are reaching (or have reached) retirement age an advisor is necessary to point out the potential of earning that supplementary income – but also to shed some light on the pitfalls of supplementing their savings Make no mistake – that peace of mind can be difficult to attain in a global environment where more and more people are choosing to become entrepreneurs, rather than going the route of traditional employment.
The layoffs that have been caused by the current Coronavirus epidemic have brought home to many the fact that permanent employment (at least in the traditional sense) does not offer peace of mind – far from it. These people have realized that plotting their own course, be it by offering strategic advice or launching a startup may be the key to financial freedom. Seniors need be no different. In fact, although for generations youth has been valued in the business environment retirees may have several advantages over the younger generation, not least of which is the fact that their vast store of accumulated knowledge may provide them with an edge over their younger and less experienced competition.
However, there is still the need for access to those professionals who have experience in this environment – even with their knowledge, seniors are still exposed to the rough and tumble of a highly competitive environment. Sound advice is absolutely essential. However, the knowledge economy has supplied those who want to supplement their retirement savings with access to advice through online entrepreneurial education.
Retirees need not fear that they are out of the running when it comes to taking entrepreneurial action. A recent study by no less an authority than MIT has shown that seniors have a significantly higher chance of prospering in an entrepreneurial environment. Other research has indicated that seniors exhibit higher levels of productivity than younger entrepreneurs and that, contrary to popular (i.e. misinformed) opinion, those of retirement age have higher levels of cognitive functioning. They are also more likely to thrive under pressure and deal with adversity better. Each of these factors should encourage seniors to dip their toes into the waters of entrepreneurship.
For many savvy seniors’ options such as online marketing and consulting are attractive options. They allow them to explore new opportunities, while leveraging their existing skillsets. For others it may be launching products or becoming involved in other forms of e-Commerce.
However, the new digital economy may require both new skills – and taking ownership of business functions that were once the responsibility of a department in a large enterprise (such as payroll and even human resources). For those who wish to leverage the power of the Internet there are aspects of marketing for instance that require in-depth knowledge (such as how to effectively leverage social media for marketing purposes). Without this knowledge the senior who is in search of peace of mind and a supplementary income will find themselves at a distinct competitive disadvantage. Developing a website and listing products online is another challenge. There are also the traditional hurdles to starting up any entrepreneurial venture such as raising capital. Online entrepreneurship courses can help bridge this knowledge gap. There are also issues regarding legal compliance and taxation that may fall outside the experience of those who are venturing into the entrepreneurial environment for the first time, once again an experienced mentor or the provider of online entrepreneurial education can be an invaluable resource.
Of course, it is almost impossible to survive in an entrepreneurial environment without some sort of support structure. Those who simply jump into the experience without a business plan (or identifying an opportunity that plays to their strengths), for instance will very shortly find themselves floundering. The Internet provides seniors with an enormous opportunity to supplement their income, however the cold, hard truth of the matter is that it is also a tremendously unforgiving environment. Even if the retiree has a unique service or product to offer, without an in-depth knowledge of the online environment – both its opportunities and threats, they are extremely unlikely to succeed.
It must also be said that for many retirees the years after they exit the formal job market are a reward for the long hours that they have spent building a career. It should be a time when they get to enjoy the finer things in life. That is not to say a lavish lifestyle, but rather one that does offer the opportunity to engage in a business that rewards them in ways that are not only monetary. They should be able do something that they really enjoy – and take some time off to simply enjoy themselves. Online entrepreneurial education is growing in popularity – and it offers those of retirement age the knowledge that they require to supplement their income and enjoy life to its fullest. That is what retirement should be all about.