It’s hard to believe that members of Generation X are getting close to retirement. But, it’s true! The oldest members of this cohort are nearing their 60s. Unfortunately, many Gen Xers are feeling financially insecure and unready to leave the workforce.
It’s an understandably anxious situation.
A person in their mid-sixties might live another 20 or 30 years, and they’ll need to be able to fund not only their day-to-day expenses but also plan for unexpected costs. At the same time, many older workers aren’t enthusiastic about the idea of sticking with their day jobs into their 70s.
Encore Entrepreneurs
Enter the “encore entrepreneurs,” those looking to start businesses later in life as part of their retirement strategy.
A recent survey by ZenBusiness provides some insights into Gen X and their plans for retirement, as well as the emerging trend of encore entrepreneurs. The survey found that nearly half (49%) of Gen Xers are unsure if they’ll be able to retire by age 65. As one might expect, higher-income workers are more likely than middle-income workers (those earning between $50,000 and $100,000 per year) to retire earlier.
Coincidentally—or not—the same proportion of Gen Xers (49%) are also considering some form of entrepreneurship to help shore up their finances during retirement.
Is Business Ownership a Good Option?
Ironically, business ownership isn’t necessarily less stressful than holding down a full-time job. Retiring Gen Xers may be in for a rude awakening if they haven’t adequately prepared for a venture into entrepreneurship.
While some—30%—feel that artificial intelligence (AI), could be a useful tool to help them streamline many aspects of running a business, it remains to be seen whether these expectations will really pan out.
Still, as Gen X approaches retirement, financial insecurity is pushing many to consider encore entrepreneurship as a viable strategy. While entrepreneurship offers potential financial stability, it also demands time and effort, which may complicate the traditional idea of retirement.
Tools like AI may offer promise to help these new entrepreneurs manage their burgeoning businesses efficiently while they maintain a degree of work-life balance as they transition from their previous careers into the next chapter of their lives.
Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.