The traditional vision of retirement—golden years spent relaxing, traveling, and living off of a well-funded nest egg—is becoming less common for many Americans. Rising costs of living, healthcare expenses, and an uncertain economy have shifted how people approach their retirement years. According to Bankrate, over half of U.S. adults say they are behind on saving for retirement, and 1 in 4 have no retirement savings at all
As the landscape of retirement evolves, many are exploring new ways to build financial stability—including launching businesses later in life. Dive into the current retirement trends and what they mean for those considering a business as part of their long-term financial plan.
Changing Retirement Trends in America
1. People Are Retiring Later
Gone are the days when age 65 marked the average age for retirement. According to Pew Research Center, the number of Americans aged 65+ who are still in the workforce has tripled since 1987. Some continue working for financial reasons, while others find purpose and fulfillment in remaining professionally active.
The future of retirement will likely include some form of continued work—whether full-time, part-time, or entrepreneurial.
2. Social Security Is Under Pressure
According to the Social Security Administration’s 2024 Trustees Report, the Social Security program’s trust funds will be depleted by 2033 unless changes are made. That could result in a reduction in benefits by as much as 20% for future retirees. Relying solely on Social Security benefits is becoming less realistic, especially as life expectancy increases and healthcare costs rise. This projection shakes financial security for future retirees.
3. Retirement Savings Gaps Are Widening
Recent surveys show the median retirement savings for Americans aged 55–64 is just $185,000. That’s far below the estimated $1 million many financial advisors recommend for a comfortable retirement. Meeting with a financial advisor can help you determine how much you really need for retirement.
This shortfall is causing many pre-retirees to look for additional revenue streams to supplement their income—making business ownership a more attractive option than ever.
4. Women & Retirement
More women are working and saving for retirement than in previous generations, but they still face unique challenges. On average, women earn less over their lifetime, are more likely to take career breaks for caregiving, and often live longer than men. This makes it especially important for women to be proactive about securing their retirement through savings, investments, and alternate income sources.
5. The Senior Population Is Booming
According to the U.S. Census Bureau, the number of Americans aged 65 and older will grow to over 80 million by 2040. This surge creates pressure on government programs. However, it also opens opportunities for those who want to serve this population—particularly through home care services, wellness programs, and senior-focused businesses.
What Can You Do to Prepare for Retirement?
While the future of retirement might be uncertain, there are many things you can still do to prepare.
- Start Saving Now: If you haven’t already, it’s time to prioritize retirement savings. Utilize employer-sponsored plans, contribute to IRAs, and explore health savings accounts (HSAs). Set clear financial goals and track your progress regularly. Even small contributions can add up over time thanks to compound interest.
- Reduce or Eliminate Debt: High-interest debt can derail retirement plans. Focus on paying off credit cards, student loans, car notes, or mortgage balances wherever possible. The fewer monthly obligations you have, the more flexibility you’ll have in retirement.
- Understand Your Future Expenses: Estimate your future monthly expenses and account for inflation. Think beyond daily living—factor in healthcare, travel, family support, and emergency savings. The more accurate your projections, the better you can prepare.
- Diversify Your Income Sources: Don’t rely solely on retirement accounts or Social Security. Consider rental income, dividends, consulting work—or even owning a business that generates income well into your later years.
Why a Franchise May Be the Right Fit for Retirement-Age Entrepreneurs
Starting a business in your 50s or 60s isn’t just possible—it’s increasingly common. According to the Kauffman Foundation, adults aged 55–64 consistently make up over 25% of new entrepreneurs in the U.S. Many bring decades of experience, strong professional networks, and a desire to control their schedules and financial future.
Here’s why a franchise is an ideal business model for those nearing or in retirement:
1. Built-In Support & Proven Systems
Unlike starting a business from scratch, a franchise gives you access to an established brand, marketing systems, training, and operational support. This significantly reduces the trial-and-error phase and speeds up your path to profitability.
2. Lower Risk, Higher Reward
Franchises typically have higher success rates than independent businesses due to their repeatable models and comprehensive support. This can make franchise ownership a safer bet for those who can’t afford major financial setbacks close to retirement.
3. Flexibility & Lifestyle Balance
Many franchise models allow you to build a business that works for your schedule—especially service-based businesses like home care, tutoring, or consulting. You can scale operations over time or hire a team to help manage daily tasks, giving you more control over your time.
4. A Business With Purpose
Franchise ownership can provide more than just income. For many, it’s about making an impact. At Caring Senior Service, for example, our franchisees often come from healthcare or corporate backgrounds and are looking to do meaningful work while building a legacy.
As David Burgess, a Caring Senior Service franchise owner in Columbus, OH, shared:
“I realized that using my gifts in this way was the best thing to do, and I could really make a difference.”
Final Thoughts
The future of retirement in America is changing. But instead of fearing the unknown, you can take control of your financial future by exploring alternative paths to security and fulfillment. Franchise ownership—especially in a growing industry like home care—can provide the income, independence, and purpose that many pre-retirees are looking for.
- High Demand: The aging population is rapidly increasing, creating a greater need for in-home care services.
- Recession-Resistant: Health-related services tend to remain in demand, even in economic downturns.
- Personal Fulfillment: Helping seniors stay safe, healthy, and independent offers a rewarding mission.
- Scalability: You can grow your business by hiring a team and expanding into neighboring territories.
At Caring Senior Service, our franchise model is designed to help you succeed—even if you have no prior experience in the healthcare industry. We offer comprehensive training, a 16-week core development program, and ongoing support to guide you every step of the way.
Ready to take the next step toward building your retirement plan? Contact our team today to learn how you can become a Caring Senior Service franchise owner.