9 Retirement Business Ideas to Start in 2026

The sedentary life of midday cocktails and leisure sports might suit some as a reward for years of hard work, but it’s not for everyone. Retirement brings an end to work, and with it goes its built-in routine, social interaction, and physical activity (say, walking to the office).

What if retirement looked more like work and less like golf and sandy beaches? It’s not a completely absurd idea. In fact, baby boomers of retirement age account for 30% of all small business owners, and a survey found that 75% of them report being happy owning a business. 

Ahead, find a list of retirement business ideas, tips, and advice for pursuing entrepreneurship. Plus, hear from small-business owners over 50 who found happiness in working (after retiring from working).

Why start a retirement business

In 2025, a record 4.2 million Americans are forecast to turn 65, a record number to do so in a single year.

But retirement today looks different than it used to. Many older Americans are staying in or reentering the workforce, motivated by financial stability, access to benefits, and the desire to stay active and engaged. 

As work itself evolves—especially with technology reducing the strain of manual labor—many roles have become more “age friendly.” Some retirees even take a phased approach, working part-time or consulting before fully stepping away.

If you’ve asked yourself, “Should I start a business after I retire?” the answer depends on your goals, personality, and retirement income needs. There are plenty of benefits to starting a business in retirement, while still finding room for a little R&R.

Take advantage of your experience

This demographic is well-suited to entrepreneurship, due to having more life experience and fewer responsibilities. The risk may be much lower, too: For many in this age bracket, pensions can provide backup, the kids are on their own, and living expenses are typically lower.

Stay active

It’s no surprise that study after study shows staying mentally active can stave off health issues and prolong your life. Keeping physically active can also reduce the risk of dementia and Alzheimer’s.

A small business demands both physical exertion (packing orders, trips to the post office) and mental exercise (writing product page copy, planning marketing campaigns). A business run from home also allows for those with limited mobility to set their own level of activity.

Supplement your pension or income

Nearly two-thirds of savers worry they’ll run out of money in retirement, and it’s easy to see why. Depending on your situation, you may be relying on reduced income after you retire. A new business could give you more financial security. It may provide support you need for staying on top of bills, paying down debt, or tucking away for a rainy day. 

Pursue a lifelong dream

If sitting around just isn’t your thing, retirement is the perfect time to find a new kind of freedom. Starting a retirement business is the opportunity to live out the dreams you may have put on hold for “someday.” Today is someday. Entrepreneurship carries less risk than it might have in your younger years, keeps you active, and can help offset the cost of a passion project.

Fund a hobby

If the goal isn’t to make money, dig into your interests and hobbies and choose something that brings you joy. Sell handmade items online or at local fairs to help pay for materials and fund a retirement hobby. This can offset the reduced income that you may have after retirement.

Stay social

The passive life of retirement might feel stifling for some who get social interaction through their work. Removing this benefit could actually be detrimental to your health. Many studies have found that sustaining social activities during later life can enhance your well-being. 

Loneliness levels among older adults are back to pre-pandemic levels, with more than a third feeling lonely some of the time or often in the past year.

Starting a business could replace some of that missing interaction, which you could have with customers, suppliers, postal carriers, and other professionals. There are also plenty of online and IRL communities for small business owners where you can get advice and meet friends with similar interests.

How to choose the right retirement business

Choosing the right business after retirement starts with understanding what you want your next chapter to look like. Use this simple framework to find a venture that fits your lifestyle, skills, and goals.

Align with your lifestyle and values

Think about how you want to spend your time. Do you want a flexible online business you can run from anywhere, or a local venture that keeps you connected to your community? Pick something that reflects your values and how you envision your day-to-day life in retirement.

Assess your skills and experience

Tap into what you already know. Your career experience, hobbies, or industry connections can give you a strong starting point, and a competitive edge. Whether it’s consulting, teaching, or selling handmade goods, play to your strengths.

Understand time and financial commitments

Every business has different startup costs and time demands. Consider how much you’re comfortable investing, both financially and personally. Some retirees prefer low-maintenance online stores or service-based businesses, while others enjoy hands-on involvement. The right choice is one that fits your energy, budget, and goals.

Use tools and resources for senior entrepreneurs

There’s never been a better time to start a business in retirement. Today, there are countless tools designed to make entrepreneurship more accessible, and there’s no tech background required. Platforms like Shopify make it easy to set up an online store, while business planning templates and free digital skills courses can help you get started with confidence.

You can also explore retirement-focused programs like AARP’s Work for Yourself@50+ or SCORE’s Entrepreneur mentoring, which offer guidance tailored to older adults starting a business. These resources can help you validate your idea, plan your next steps, and build the confidence to launch.

9 retirement business ideas to act on today

The best retirement business ideas start from what you know. If the goal is not necessarily to make money online, dig into your interests, experience, and hobbies, and choose something that brings you joy. 

The business ideas for retirees are infinite:

• Start a consulting business
• Make products to sell
• Start a coaching business
• Sell courses
• Offer tutoring services
• Become a reseller
• Sell services
• Start a home services business
• Launch a local tour guide service

1. Start a consulting business

Retirees can tap into their years of experience in a specific field by offering consulting services. Did you work in corporate interior design? Sell consultations for smaller residential projects. Were you an investment advisor at a firm? Start your own financial consultancy and set hours that work around retirement leisure.

There are many consulting business ideas that are ideal for new retirees who want to set their own pace without stopping work altogether.

• Startup cost: Relatively low overhead. Expect to spend $5,000 to $10,000 (or equivalent in local currency) on essentials like business registration, website, marketing, and legal/insurance setup. 
• Time to income: Many consultants begin landing paying clients within three to six months, depending on your network and marketing.
• Typical earnings: Hourly consulting rates vary widely by field, from $50 to $300 or more per hour, or retainers of $1,000 to $5,000 or more per month. (In some cases, experienced consultants exceed six figures annually.)

Can consulting businesses hold up in a recession?
Consulting can hold up well in downturns. Companies still need guidance to cut costs, optimize operations, or pivot their strategies. To stay competitive, specialize in a niche (e.g., cost reduction, digital transformation) or offer value-based pricing. Build in smaller packages (e.g., “mini audits” or short-term engagements) to appeal when budgets are tight.

2. Make products to sell

If you occasionally sell jams or knitted goods at your church’s bazaar on weekends, you can ramp things up by starting a maker business. Consider expanding your sales channels into other local markets and craft fairs. If you’re less mobile, an online store is an excellent option for retirees, as it has the flexibility to be run from home.

What are you already doing in your spare time? Wooden dollhouses, prize-winning pies, and crocheted blankets are just a few things you can make and sell in retirement.

• Startup cost: Depends heavily on materials and tools. You may need $500 to $5,000 or more for supplies, packaging, photography, and online storefront setup.
• Time to income: Could begin generating small revenue within weeks, but hitting meaningful volume may take three to 12 months.
• Margins: Many handcrafted or maker businesses aim for cost-of-goods margins of 40% to 60%, though net margins may slip to 10% to 30% after marketing and overhead.

Can homemade goods hold up in a recession?
Handmade goods can be vulnerable when consumers cut discretionary spending, but niche positioning helps. Focus on unique, high-value, premium or giftable items rather than commodity crafts. Use storytelling or personalization as a differentiator. Also consider subscription or repeat-sales models (e.g., curated gift boxes) to stabilize income.

Trisha Trout didn’t start her handmade soap brand until after she was 50. She spun a weekend hobby into a retiree business after a family tragedy. “The best part of running my business is just the knowledge that I’m able to support myself,” says Trisha. “I’m not wealthy, but I make enough to enjoy life and help others here and there.”

3. Start a coaching business

Coaching is one of the best retirement business ideas for those with a background in business or psychology. You could start a successful business after retirement doing what you already do best. As a small business owner, you can now set your own hours at your own pace, and take on only projects that energize you. 

• Startup cost: Very low. You’ll mainly need a website, branding, scheduling tools, and perhaps a certification (optional).
• Time to income: Coaches often onboard initial clients within one to three months, especially via referrals or partners.
• Typical earnings: Many coaches charge $100 to $500 or more+ per hour, or package programs worth $1,000 to $10,000 or more.

Can coaching businesses hold up in a recession?
During economic downturns, people often invest in coaching to re-skill, find new purpose, or manage stress. Positioning yourself in areas like career-transition coaching, mindset coaching, or reskilling may help maintain demand. Offering flexible pricing, payment plans, and shorter, lower-cost introductory products can reduce friction when budgets are tight.

4. Sell courses

You have a wealth of life and work experience! How can you monetize what you know? Sell digital products like video or PDF instructional courses. These require more work upfront, but have excellent margins and minimal effort in the long run.

You can also run courses from your home such as art tutorials or yoga classes, inviting students to join in person or via livestream.

• Startup cost: Expect to spend on recording equipment, course platform subscription, and initial marketing.
• Time to income: There’s more upfront work (creating content, structuring lessons), but once launched, income can flow passively.
• Margins: Digital courses often enjoy 70% to 90% net margins because there are no physical goods.

Can online courses hold up in a recession?
Education and self-improvement tend to be more resilient in downturns. People look inward, develop new skills, or seek side-income ideas. However, competition is strong, so niche down to an audience you understand well. Offer tiered pricing or bundled lower-cost entry products to lower the barrier to purchase.

Chiara Nicolanti found a way to keep her grandmother busy during the COVID-19 pandemic when lockdowns forced her in-person cooking classes to shut down. Chiara took those classes online and her (now late) grandmother, Nonna Nerina, became the face of Nonna Live. The business lives on in Nonna’s memory, employing other retired women in her small Italian village. 

Small business owners of older generations have a lot to share due to their years of experiences, and people are willing to pay for it. “I share our history and let [customers] experience a part of Italy, our family, and my grandma’s culinary secrets,” says Chiara.

5. Offer tutoring services

Teachers who love sharing knowledge but want to retire from formal education environments can consider starting a tutoring business. Tutor children, college students, or adults, either in person or virtually from home through an online business. This is a great way to make money as a teacher after you retire.

• Startup cost: A website or listing in tutor directories, plus materials.
• Time to income: You can often get students in weeks if you have credentials or reputation.
• Typical earnings: Many tutors charge $25 to $100 or more per hour, depending on subject and level.

Can tutoring services hold up in a recession? 

Education is often a priority, even during tight economic periods. Parents and students may cut extracurriculars, but core learning and exam prep remain essential. Position yourself in in-demand subjects (STEM, languages, test prep) or adult learning (skills, certifications). Offer package deals or sliding scales to stay accessible.

6. Become a reseller

If you have retirement savings to invest in a new business, consider becoming a reseller. This involves less work than developing your own product. Starting an online store to sell goods from other brands is a great small business idea to make extra income. And, if you choose a dropshipping model, you won’t even need to handle inventory.

• Startup cost: Inventory-based reselling might require $1,000 to $10,000 or more for initial stock. Dropshipping models can start with very low capital.
• Time to income: Depends on how quickly you build sourcing, marketing, and traffic. It could take several months to start earning reliably.
• Margins: Resellers typically aim for gross margins between 40% and 80%, though after all costs net margins are often slimmer.

Can reseller businesses hold up in a recession?
Reselling can face erosion of margins when competition gets intense, especially during downturns. To stay resilient, select specialized niches, bundle value, and cultivate brand differentiation. Dropshipping cuts risk but often has lower margins and higher competition, so you’ll need to focus more on marketing, customer experience, or curation.

Sonja Detrinidad took a new hobby to the next level when she went viral on TikTok. The former mortgage professional was sourcing plants for her own garden and documenting her journey online. Soon others were requesting her services. Sonja started Partly Sunny Projects to bridge the gap between greenhouses and plant parents everywhere.

7. Sell services

As an older entrepreneur, you can sell services like landscaping or pet sitting. These activities can keep you physically active and social. This is a great way to stay connected to your local community and pick your own hours. 

Other services may be related to your former career. Retirees from service industries like accounting, construction trades, or wellness services may choose to downgrade from working full time to selling these services on the side.

• Startup cost: Equipment, insurance, advertising.
• Time to income: Many service-based businesses can start earning within weeks, especially locally.
• Typical earnings: This varies widely by service. For example, a bookkeeper might charge $30 per hour; a gardener or pet sitter might charge $16 to $24 or more per hour, or a fixed-per-job rate.

Can service businesses hold up in a recession?
Basic services are more resilient in downturns. People continue to need home maintenance, pet care, accounting, or wellness help. The trick is to stay efficient, build local trust, and possibly bundle services (e.g. package deals) to keep steady cash flow.

8. Start a home services business

From house cleaning and handyman repairs to organizing and downsizing help, home services are always in demand. This is especially true as more people age in place or work remotely. Retirees with experience in trades, management, or customer service can easily turn these skills into a flexible, local business. Home services businesses are great for retirees looking to be more active.

• Startup cost: Low to moderate, typically $2,000 to $10,000, depending on tools, insurance, and local licensing.
• Time to income: Most home service businesses can start generating revenue within a month or two once you begin marketing locally or through online platforms like Thumbtack or Taskrabbit.
• Typical earnings: Small home services owners often earn around $100,000 annually, depending on scope and scale.

Can home services businesses hold up in a recession?
Essential home repairs and maintenance remain steady even when the economy slows. People still need functioning plumbing, safe electrical systems, and clean homes. Focusing on recurring services (like lawn care or home cleaning subscriptions) can create predictable income. To stay competitive, highlight reliability, affordability, and trust.

9. Launch a local tour guide service

If you love where you live and enjoy meeting people, consider turning that local knowledge into a tour guide business. You could lead food walks, historical tours, or niche experiences like photography, art, or nature outings. Retirees with strong communication skills or community ties often excel here.

• Startup cost: Around $1,000 to $5,000 for permits, insurance, website, and marketing.
• Time to income: You can typically start offering tours within one to three months, especially if you promote through Airbnb Experiences, TripAdvisor, or your own site.
• Typical earnings: Successful guides can make $30,000 or more per year. 

Can local tour guide services hold up in a recession?

Local and “staycation” travel tends to rebound faster than international tourism during economic downturns. Small, authentic experiences that offer community connection and value for money often perform well. You can also diversify by offering private tours or themed experiences for small groups to keep income steady.

Retirement spotlight: Bernie Rothrock

When Bernie Rothrock retired after 30 years of teaching, he accepted his brother-in-law Tom’s offer to manage his alpaca ranch. Bernie and his wife had no specific retirement plans at that point and took a chance. “I had never worked with any animals whatsoever in my lifetime,” says Bernie.

When Tom passed away, much of the herd was sold, but the new owners allowed Bernie to keep 11 alpacas on the property. He continued to care for them as pets, with no intention to breed them for profit. “Alpacas are just really nice, neat little animals,” Bernie says. “And our grandkids love them.”

The fiber from the annual shearing of alpacas is sent to a fiber co-op and turned into products like socks, hats, and mittens. Co-op prices are lower than wholesale for ranchers like Bernie, because he’s providing the raw materials.

Bernie’s sister-in-law had a small store at the ranch. “The alpaca socks always sold really well,” he says. That’s when his son Drew suggested Bernie sell those socks online.

Bernie initially bought $1,000 worth of socks and launched them on his own website in time for Cyber Monday in 2015. The response was overwhelming. “Within a day, I’m calling my wife and saying, ’We need more socks!’” he says.

Maximus & Penelope—named for two alpacas in the herd—became a thriving Shopify store, run by a retiree with no previous business experience. The store provided Bernie and his wife a little extra money to travel and enjoy a peaceful retirement. “I really did not have that entrepreneurial bug, if you will,” he says. “It was happenstance. Things just worked out.”

5 questions to ask before starting your retirement business

Once you have an idea, the best way to get started is to just start. You can begin a free trial on Shopify and play with your new store before you go live. If the prospect of building a website is overwhelming, start with free resources to guide you through the process. Next, ask yourself a few important questions:

1. How will you finance your new business?

What if we told you that you can start a business with a $0 budget? It’s possible. If your goal in retirement is to stay active, social, or creative, there’s no need to invest heavily upfront. 

For ideas that require startup capital, there are still smart, low-risk ways to fund your business. Always plan ahead and talk to a financial professional before using personal savings or retirement funds.

Here are a few tips to get you started:

• Start small: Don’t pour your life savings into a new idea right away. Test it with a small audience, start with minimal inventory, and scale as you validate demand.
• Borrow against retirement savings: In the US, you can borrow against your 401(k) to fund your business. Check local regulations if you live outside the US, as rules differ by region.
• Explore ROBS (rollovers as business startups): A ROBS arrangement lets you use retirement funds (like a 401(k) or IRA) to finance a business without taking a loan or paying early withdrawal penalties. It’s a complex process that requires working with a qualified provider, but it can be a useful option for retirees who want to invest in themselves.
• Consider a microloan: The US Small Business Administration (SBA) and similar government programs offer small business loans and grants tailored for older entrepreneurs or first-time business owners. These can range from $500 to $50,000, depending on the program.
• Try crowdfunding: Platforms like Kickstarter, GoFundMe, or Indiegogo can help you raise capital from friends, family, and supporters who believe in your idea. Crowdfunding is especially useful for creative or product-based businesses and can double as early marketing.
• Keep it lean: Use free or low-cost tools to build momentum. Shopify’s free trial, logo makers, and budgeting spreadsheets can help you launch without a large upfront investment.

2. Can you play to your strengths (and learn the rest)?

Bernie’s 30 years as a teacher has made him quite the wordsmith. He writes all of his site’s copy, product descriptions, and blog posts. With a little help from his son, he learned the mechanics of building and maintaining a website.

It’s never too late to learn something new. Many cities, public libraries, government-run facilities, and community groups offer free courses for seniors, like basic computer skills and web design. Check listings in your area for programs catering to retirees or older folks.

3. Do you have an exit strategy?

You may retire with tons of energy and the ability to run a business on your own, but what will happen if you no longer can? What’s your plan if health issues prevent you from continuing to manage the business? Have you had discussions with your family about your wishes and who should take over? 

Succession planning doesn’t have to be complicated. It can be as simple as outlining who will manage business operations, handle customers, or sell the business if needed. Consider documenting key processes and keeping financial records organized so someone else can step in easily if the time comes.

Bernie says he watched many like him enter the alpaca business at an older age. “You’re just one health issue away from no longer being able to care for your herd,” he says. That’s why he’s keeping the business small.

4. What about a family business?

Consider starting a business that brings your family together and builds a legacy for future generations to carry on in your name. Bernie and Drew might live in different countries, but the business was the catalyst for keeping them connected regularly. Bernie’s wife has even joined the team, and between caring for her grandkids, she managed the store’s social accounts.

5. What are the tax implications?

Starting a business in retirement can affect how your income is taxed, and even how much of your Social Security benefits you keep. Business earnings are typically considered self-employment income, which means you’ll pay income tax and self-employment tax (covering Social Security and Medicare contributions).

If your total income, including business profits, exceeds certain thresholds, up to 85% of your Social Security benefits may become taxable. The exact amount depends on your filing status and overall income level.

Disclaimer: The information above is for educational purposes only and does not constitute tax, legal, or financial advice. Always seek advice from a qualified professional who can consider your situation and the current IRS/SSA rules before starting a business.

Retirees make great small business owners

Let’s face it: You’re in the prime of your life. Ideally, you have fewer responsibilities and more savings, making the prospect of acting on a business idea all the more possible. There are plenty of retiree business ideas for every type of lifestyle you hope to have in your later years. Take those decades of experience and make extra income doing something you love.