Retirement often means stepping back from the active work life you've known, sometimes, even when you may not want to, as with 9-5 employees. However, while you're retiring, your bills and expenses don’t retire with you. If you have a pension, you may be covered in retirement but what if you don't have sufficient pension funds? How do you manage financially during retirement?
Thankfully, there are several businesses that retirees can take up whether they are former employees or entrepreneurs. Retirees can also turn their hobbies and passions into money-fetching businesses. In this article, we explore five profitable business ideas for retirees in Nigeria to help you cushion the effects of potential financial problems as you retire.
Top 5 Business Ideas for Retirees in Nigeria
Agriculture
Nigeria’s agricultural sector holds immense potential for profit-making even as you prepare for a peaceful retirement. There are numerous branches in this sector that you could venture into including crop farming, poultry farming, fish farming, or animal husbandry. You may leverage your experience to manage the farm effectively if you have some experience, start small with backyard farming, or invest in hiring people to build larger-scale operations.
Consulting Services
Upon retirement, you can share the experience and expertise you have garnered in your professional career throughout your active work years in exchange for money. Consulting is a stress-free way to make money in retirement allowing you to work on flexible schedules while imparting knowledge to businesses and individuals who need it. For instance, a retired teacher can offer educational consulting services, help schools develop curriculums, or even train teachers.
Rental Services
Rental businesses involve buying in-demand equipment and leasing or renting them out to people who need them for a fee. This can be highly lucrative if you understand the market. Instead of being a general-purpose rental store, you may consider niching down to categories such as vehicles, cooking equipment, machines, or property, as the case may be. Each category has unique demands and may therefore require a certain level of technical know-how to succeed.
Real Estate
Investing in property to rent or sell is one of the most profitable business ideas for retirees in Nigeria. This is because the industry's market value is on the rise. The residential real estate market, for example, is projected to become more valuable, with a tendency to appreciate at a compound annual growth rate (CAGR) of 7.32%.
You can therefore take advantage of this trend to purchase residential or commercial properties, renovate them, and rent them out. You can also offer property management services to other property owners, ensuring properties are well-maintained and tenants are satisfied.
Mentorship
Your wealth of knowledge can empower the next generation when you become a mentor guiding young professionals or entrepreneurs in your field. Doing this not only provides financial benefits but also offers personal fulfillment.
If you’re a retired business executive, you can mentor young entrepreneurs, and provide insights into business strategy, management, and growth. This helps the next generation of workers and allows you to stay engaged by contributing significantly to your field.
Conclusion
All of the above businesses are a great start if you're looking to get extra cash to support your needs in retirement. However, factors like capital, interests, market, risk factors, experience, passion, and agility would often influence your decisions.
For example, the rental business is more capital-intensive than the mentorship or consultation business. Similarly, agriculture is more labor-intensive compared to rental and real estate.
Therefore, it is important that you conduct some research, and weigh the pros and cons of any business before advancing. Remember, you're not alone and Oakpensions is here to hold your hands as you prepare for the future.
If you need insight and help with planning for retirement, contact the Oakpensions team of retirement professionals at info@oakpensions.com.
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