When you think about retirement, you would think that it’s time for you to enjoy your life free from work and other things that disabled you from pursuing what you love. However, for some people, retirement is nothing but a milestone and it should be a stepping stone to trying out something new while still earning from the side.

If you are considering starting a post-retirement business, you may be wondering where to get the funds to finance it. Since you are now retired, you don’t have a regular paying job to help you support your new sideline.

Fortunately, there are several ways to finance your post-retirement business and here they are below:


If the business you are pursuing after retirement is something you have done for a while now, you can consider bootstrapping for your business. In bootstrapping, you will be using your own capital to build your business and grow it. This is ideal if you don’t want to go into debt as you work on your business and reduce the risks as well.

The only problem with bootstrapping is the fact you may not have enough funds or capital to use to get new staff or advertise.

Personal loans

If you need to purchase a property, equipment and all the other business essentials for your business, it may be ideal to get a personal loan. If you have a good credit score, you can enjoy affordable payment terms with low interest rates.

However, do your research to find out which banks provide you with the best interest rates.

Government Funding

The government may also be able to help you finance your post-retirement business through their business startup programs.

There are certain schemes which can be used by seniors to open small businesses with the help of government-sponsored or partnered lenders. Check with your government if they do support small business startup ideas like yours.

Read More: What Governments are Doing to Help Out Freelancers and Self-employed Impacted by COVID-19

Venture Capital

If you don’t want to use lenders to fund your business, you may want to consider a venture capitalist. Some governments can help you find these investors that can invest funds in your business through loans or equity while others may rely on angel investors.

Angel investors are entrepreneurs who see potential in your ideas and will invest money in exchange of stocks in your company. It is just like the reality program called Shark Tank.


Want people to know your business and get funds at the same time? Crowdfunding is the perfect finance strategy to use.

In crowdfunding, you can propose your business to people who may be interested in seeing your business start and provide you with the funds necessary to make it happen.

To show your appreciation, you can give them gifts or rewards they can use when they check out your business.

Read More: How To Start Your Business Without Funding

Retirement Account

You can also use your retirement account to fund your business, but this must be the last resort and I generally will advice against using your nest egg,

If you do plan to use your retirement account, you should speak to the agency handling your retirement account and see how you can withdraw from it and use it for your business. While it does reduce the risks of you being in debt and paying penalties, it will deplete the money you can use for other important things like medical care.


Don’t let your age (it’s just a number!) stop you from pursuing something that you want to try but were unable to do so because of your other responsibilities before you retired. Check what funding options you have available and plan accordingly.

Remember, there will always be risks in building a business, especially at your age. But, if you really love what you are doing, you can grow your business and set you up financially for a long time.

For more on retirement, here are some interesting articles you need to catch up with:
10 Jobs for Retirees Working from Home
A Word Of Advice: I Hate Retirement

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58 replies on “How to Finance Your Post-retirement Business

  1. This is interesting and good advice. My dream is having a bed and breakfast when I am retired so I can still meet people from everywhere and enjoy hospitality work, which I always loved. I am thinking of retiring next year . We just need to find the right place to do it.

    Liked by 3 people

  2. Thanks for all the good advice, Kally! As you know, there are two positive trends in society, namely, people are living much longer, and are staying healthier and more vital much later in life.

    Consequently, though, that means retirement planning is much more crucial now than it was even forty years ago.

    When our generation’s time comes, retirement age likely will be 75 or even 80. Even so, most of us will have a couple decades ahead of us at that point. Not bragging or tempting Fate; just a realistic assessment.

    With your advice in hand, though, we’ll make those decades good ones.

    Liked by 1 person

      1. Exactly, Kally! When I retire, I almost certainly will do more than just look for reasons to complain about things not being the way they used to be (though there probably will be some of that, truth be told).

        Even if no financial need makes it necessary, I still will be involved in some kind of enterprise, as I don’t think I’ll be able to deal with having no interaction. Especially not after partaking of workplace vitality for sixty years by that point.

        Liked by 1 person

        1. Same here. One of the comments here by Ute is that she looks forward to set up her own Bed & Breakfast when she retires. I think that is a grand idea. For me, if I were to set up businesses, it will probably be a bookshop or a dive centre, neither will make much profits. I think I better off volunteering at animal shelters.

          Liked by 1 person

          1. It’s funny, Kally, how retirement turns things upside-down.

            Now, when we’re young, if we have to choose, Lucrative usually beats out Enjoyable. Sometimes it’s neither, sometimes it’s both, but if we must make a decision…

            However, part of planning for retirement means Lucrative no longer is a factor. If something’s enjoyable, who cares if it pays only peanuts? Plan things well, and Lucrative suddenly becomes the biggest non-factor of all. Now that’s freedom.

            By the way, I love your idea of a bookshop. Who cares if nothing sells? I’m having far too much fun stocking the shelves and doing a little reading. OK, a lot of reading.

            Liked by 1 person

  3. Best 9 Money Management Apps for Easy Financial Planning

    Do you want to keep a budget, but aren’t sure where to start? Or maybe you have your money in a few different places and want an easy way to keep an eye on it all? We scoured the web and app stores to find the best money management apps so you can dive in, start saving money, and live more financially secure!

    Liked by 1 person

  4. This is a great article!

    Touching on your note about SBA/Government loans, Senior entrepreneurs are more likely to be approved for their loan applications as well according to an article on SBA.gov.

    There is no substitute for life experience, so loan officers often look more favorably on applicants as a result.

    Liked by 1 person

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