How I Learned to Plan for Retirement as a Woman Running a Small Business

How I Learned to Plan for Retirement as a Woman Running a Small Business

The scent of fresh coffee filled the air as I sat in the corner of a cozy home office, papers strewn across a wooden desk, sunlight streaming through the window. I was in my early 30s, visiting a woman who'd built a small business from nothing—a dream she'd nurtured with grit and heart. Her workspace was a reflection of her: organized chaos, with sticky notes in every color and a laptop humming softly. But that morning, her usual spark was dimmed. She stared at a spreadsheet, her fingers tracing numbers that told a story of years spent pouring everything into her business. "I've been so focused on keeping this going," she said, her voice quiet but heavy, "I forgot to plan for me." At 50, she was facing a truth that hit me hard: running a small business is all-consuming, but planning for retirement as a woman is a non-negotiable act of self-care.

I'd always admired her—her ability to turn an idea into a thriving business, her knack for solving problems with a smile. But that day, I saw the weight of being your own boss in a new light. Unlike employees with company-sponsored 401(k)s or pensions, small business owners are 100% in charge of their financial future. It's empowering, but it's also daunting. She hadn't thought much about retirement until recently, and the realization that it was closer than she'd imagined sent a shiver down my spine. It made me think: what does it take to plan for retirement when you're running a small business? And how can a woman, at any age, take control of her financial story?

If you're a small business owner, whether you're 30 or 50, you might feel that same mix of pride and pressure. Your business is your baby, but it can't be your only plan for the future. I learned from her that starting early—even if "early" means right now—can make all the difference. The beauty of being in your 50s is that you still have time, maybe a decade or more, to shape a retirement that feels secure and fulfilling. It's not about regretting what you didn't do in your 20s or 30s. It's about writing the next chapter with courage and clarity.

One of the first things she did was face the numbers head-on. How much would she need to retire comfortably? Financial experts often say you'll need about 70% of your current income to maintain your lifestyle after you stop working. A portion of that—maybe 30% to 40%—might come from social security benefits. She pulled up her benefits statement online, her eyes scanning the estimate. It was a starting point, but not something to lean on too heavily. If you haven't checked yours, it's worth a few minutes. It's like a glimpse into what might be waiting, though it's wise to treat it as just one piece of the puzzle.

Building my business and my future, one thoughtful step at a time.

One mistake she almost made was assuming she could rely on selling her business. It's tempting to think that years of hard work will translate into a big payout, but the reality is trickier. She learned that even profitable businesses don't always find buyers. Some entrepreneurs want to start from scratch, and others may not have the funds to buy a well-established company. Instead of banking on a sale, she started thinking about legacy. She had a small team, and one of her employees showed promise. Could she train them to take over her role? It wasn't easy, but she began mentoring them, slowly stepping back while still collecting a share of the profits. It was a way to retire without letting go of what she'd built. If you have employees, could someone step into your shoes? It's worth considering.

But she didn't stop there. Relying solely on her business felt too risky, so she explored retirement savings options designed for small business owners. One game-changer was the Solo 401(k), sometimes called a Single Participant 401(k). I'd never heard of it before, and neither had she, but it's perfect for business owners without employees. It allows higher contributions than a traditional 401(k), which means more money tucked away for the future. Setting it up wasn't a walk in the park—there was paperwork, and she needed a financial advisor's help to navigate it—but it was worth it. If you're a small business owner, have you looked into a Solo 401(k)? It's like giving your future self a high-five.

She also opened a SEP-IRA, another option for small business owners. It's simpler than a 401(k) and offers tax benefits that made her smile for the first time in weeks. Unlike a regular savings account, where it's easy to dip in for a new piece of equipment or a business expense, a SEP-IRA keeps your money locked away for retirement. The rules get even more flexible when you hit 50, allowing you to contribute more each year. If you haven't explored IRAs yet, it's a smart move. It's not just about saving money—it's about building peace of mind.

What struck me most was how she diversified her approach. She didn't put all her eggs in one basket. Beyond her Solo 401(k) and SEP-IRA, she started dabbling in low-risk investments like bonds. She wasn't trying to get rich quick; she just wanted a safety net. I remember her saying, "If one thing doesn't work out, I'll have others to fall back on." That mindset stuck with me. Social security, business profits, retirement accounts, investments—none of them should be your only plan. Have you thought about spreading your savings across different options? It's like planting multiple seeds for your future.

Another lesson came from how she adjusted her lifestyle. She started practicing living on a fixed income, even though her business was doing well. It was like a test run for retirement. She cut back on small luxuries—fewer client dinners, a simpler phone plan—and redirected that money into her retirement accounts. It wasn't about deprivation; it was about priorities. She even took on a side hustle, freelancing on weekends for a few months. The extra cash went straight into her SEP-IRA. At 50, it wasn't her dream to work extra hours, but she saw it as an investment in her future self—the one who'd be free to travel or spend mornings reading by a window.

Watching her journey taught me that planning for retirement as a woman running a small business is about more than money. It's about claiming your future. She'd spent years building a business that reflected her heart and hustle, but now she was building something just as important: a life where she could rest, dream, and thrive without worry. If you're a small business owner, you know the grind. But you also know the power of taking charge. Whether you're 30, 40, or 50, every step you take now is a gift to the woman you'll become.

What's one small step you can take today to plan for your retirement? Maybe it's checking your social security benefits, exploring a Solo 401(k), or talking to a financial advisor. I'd love to hear your thoughts in the comments. Let's inspire each other to keep building our businesses—and our futures—with confidence.