Will I have enough money to retire comfortably?
As retirement draws near, many people ask that very question. Unfortunately, the answer is often "I'm not sure." Having savings or 401k (or an increasingly rare pension plan) can help, but relying solely on these resources can feel unnerving.
The idea of living on a fixed income that's lower than your working wages can make the idea of retirement a difficult pill to swallow. That's why many retirees seek new ways to find a stable retirement and a steady income.
The Reality of Retirement Income Planning
Planning for retirement isn’t as simple as it used to be. With traditional pensions fading and social security uncertain, today's retirees must take charge of their financial futures.
Consider the alternative: as of February 2024, the average amount of Social Security payments to retirees was $1,770 per month. That’s $21,200 a year, a far cry from the minimum income needed to pay for basic living expenses most places in the U.S. There are even concerns about the long-term viability of the Social Security program.
It's clear: for many, Social Security doesn’t seem like a reliable retirement plan. But retirement planning's complexity will likely leave many seniors in a bind. The Fed's latest data shows that only 31% of non-retirees, in 2023, thought their retirement savings plan was on track. This is down from 40% in 2021. Economic volatility, inflation, and other market forces are partly to blame, damaging our sense of security in recent years.
The good news is that most people still have time to turn their situation around. Start by taking stock of your savings, investments, and expenses. Next, figure out how much income you'll need, what your lifestyle and long-term goals are, and how you plan to fund them. You'll also want to find ways to shield it from inflation and unexpected costs. Finally, to make sure your retirement funding matches your goals, think about other sources of income.
Retirement Business Ideas
Starting a business can be a great way to boost your retirement income. Not only can it provide extra money, but it can also give you a sense of purpose and leave a lasting legacy for your loved ones.
According to a recent study, more than half of workers (59%) plan to work in retirement. Even among those who don't plan to work, it's now common to retire and then return to work, at least part-time. The nonprofit RAND Corporation found that about 40% of workers over 65 had retired, but then returned to work.
What are retirees doing for work?
Many retirees see this stage of life as an opportunity to turn a hobby or skill into a profitable business. If that's not possible, they consider options that match their expertise or passions. Many find success in industries where they can use their years of experience. For example, retirees often have a wealth of knowledge in areas like management, leadership, and customer relations - skills that are crucial for running a successful business.
Some other things to consider include:
Home Based Business Models
Home-based business ideas are often appealing to pre-retirees and current retirees. They offer two major benefits: lower overhead costs from not having to rent space, and flexibility.
Lower startup costs and overhead expenses, make them more accessible to those living on a fixed income.
Flexibility allows you to work at your own pace, which helps you balance your work, free time, and family responsibilities. In retirement, having this flexibility is crucial to maintaining a sense of purpose while still enjoying your free time.
Recession Resilient Industries
Volatility in the broader economy is cyclical and normal, but it makes financial security crucial for soon-to-be retirees and current ones. Economic downturns can wipe out savings and investments and are difficult to predict. Hence, why retirees need stable income sources to weather the inevitable fluctuations.
Home service businesses can be more resilient during downturns than other sectors, offering steady income in uncertain times. The top opportunities include home improvement, maintenance, and personal services. These sectors focus on essential services. By choosing these, retirees can create a dependable business. This not only helps the community but may also safeguard their financial future.
Best Franchises for Retirement
Given the advantages of a home service business, it can still feel daunting to start a business on your own. This is especially true if you are looking forward to spending your retirement years engaged in more family and leisure time.
One great option that can help alleviate the stress of a start-up is investing in a franchise business. In fact, investing in a franchise can be a more structured way to bring about success. Franchises come with established brands, marketing support, and proven systems, which can reduce the risks associated with launching a new business on your own as a solo entrepreneur. Home service franchises, in particular, provide several key advantages.
For example, some can even be operated from home initially, allowing you to manage your business without the need for a physical storefront.
Another great benefit of home service franchise businesses is that they generally have lower operating costs, making them an accessible option for those looking to supplement their retirement income while enjoying the freedom of entrepreneurship.
Finally, generally, you don’t need industry experience to start a home service franchise business - just the willingness to learn and the determination to succeed. In fact, franchise business owners come from all walks of life and work histories. Your diverse background may even be a strength as you enter a new industry and start up a successful franchise business of your own!
Some of the best franchises for pre or current retirees include:
Pest Control Franchise
With the potential for recurring revenue through ongoing service contracts, pest control franchises can provide that steady income stream you are looking for.
Plus, a quality franchise model will include comprehensive training and support, allowing you to leverage your existing management skills and customer relations experience. To learn more about one of the top outdoor pest control franchise opportunities, visit Explore a Mosquito Joe Pest Control Franchise.
Window Cleaning Franchise
Like pest control, a window cleaning franchise presents a variety of benefits, particularly appealing for retirees looking for a flexible and rewarding business opportunity. For example, in addition to offering standard window cleaning services, franchise owners can expand their offerings to include gutter cleaning, pressure washing, holiday lighting and other related services. This diversification can attract a broader customer base and increase revenue potential.
Offering a variety of services year-round helps with consistent revenue, while you can still capitalize on those essential seasonal needs—such as spring cleaning or post-storm cleanups. Check out an innovative window cleaning franchise opportunities by visiting Learn More about Window Genie Franchise Opportunities.
HVAC Franchise
Heating, ventilation, and air conditioning (HVAC) services are essential for both residential and commercial properties, making this franchise option recession resilient. The demand for HVAC technicians remains strong, regardless of economic conditions, as homes and businesses require reliable climate control year-round.
For retirees with a technical background or an interest in home improvement, an HVAC franchise offers a rewarding way to contribute to community well-being while securing your own financial future. But not all HVAC franchise businesses are the same. To help you start out on the best possible foot, visit Learn More About Air Serv HVAC Franchises.
Explore Retirement Business Ideas That Work
With so many options, investing in a franchise can be a smart way to plan for retirement.
Another smart move is to select a franchisor that provides the complete training and support needed to run a successful business. With a franchisor like Neighborly®, the world's largest home services company, you'll have the backing you need to succeed.
We provide comprehensive training, ongoing support, a proven business model, and step-by-step processes to help you succeed. If you're looking for retirement income, our affordable home service franchise options might be just what you need. With a modest investment, you have the ability to create a valuable asset to sell in the future or pass on to your family.
To learn about a Neighborly franchise, download our free Franchise Guide.
*The information provided is for informational purposes only and should not be considered as financial, investment, or legal advice. Always consult with a qualified professional before making any investment decisions.
