How Business Owners Can Plan for Retirement Without Selling Their Business

For many business owners — especially women who have poured years of energy, vision, and resilience into building something of their own — the idea of retirement doesn’t always follow a traditional path.

You may not plan to sell your business, at least not right away. Maybe it’s part of your identity, a source of community, or something you want to pass down. Still, that doesn’t mean you shouldn’t prepare for retirement with intention.

A holistic retirement plan goes beyond just succession or exit strategy. It includes income planning, investment diversification, risk management, tax efficiency, and lifestyle design — all while aligning with your values and long-term vision.

Here’s how women business owners can start planning for retirement, even if selling the business isn’t on the horizon.

Clarify What Retirement Means to You

Retirement looks different for entrepreneurs. It could mean scaling back, transitioning to a board or advisory role, or stepping away gradually. Before diving into the numbers, get clear on:

• When you want to stop working full-time

• How much income you’ll need to maintain your lifestyle

• What role, if any, your business will play in that income

• What legacy you want to leave behind — financially and personally

Understanding your vision allows your financial plan to support the kind of retirement you actually want — not someone else’s version of it.

Build Wealth Outside the Business

Many business owners make the mistake of reinvesting everything back into their company. While that can fuel growth, it also creates a concentration risk. If your business is your only major asset, your financial future is tied to its ongoing success — or marketability.

Start diversifying by:

• Setting up a retirement plan, such as a SEP IRA, Solo 401(k), or defined benefit plan

• Investing in brokerage accounts for long-term flexibility

• Building an emergency fund or liquidity reserve not tied to business cash flow

• Establishing other income-producing assets like real estate or passive investments

This approach ensures that you have financial independence even if the business changes or ceases operations down the road.

Create a Retirement Income Strategy Without a Sale

Even without selling your business, there are several ways it can continue to support you in retirement:

1. Draw Income as an Owner or Advisor

You might continue to receive a salary, consulting fees, or distributions — even after stepping back from day-to-day operations.

2. Lease Business Assets Back to the Company

If you own property, equipment, or intellectual property personally, you can lease them to the business. This can provide consistent retirement income while preserving ownership.

3. Set Up a Family Transition or Internal Succession

Passing the business to children, a co-owner, or a trusted employee can allow you to stay connected while gradually shifting income and control.

4. Establish a Buy-Sell Agreement with Flexible Terms

If you do plan to sell eventually, a phased buyout or structured agreement can provide retirement income over time rather than all at once.

Work with a financial advisor and attorney to ensure these strategies are legally and financially sound — especially when family or key employees are involved.

Take Advantage of Tax-Advantaged Retirement Plans

Small business owners have powerful options when it comes to retirement savings. Even if you’re starting late, you can still build substantial tax-deferred or tax-free savings with the right plan.

Options include:

• Solo 401(k): Ideal for solopreneurs or business owners with a spouse on payroll. Allows both employee and employer contributions — up to $69,000 in 2024 if over age 50.

• SEP IRA: Simpler to administer and great for businesses with few or no employees. Employer contributions only.

• Defined Benefit Plan: Works best for high-income owners close to retirement who want to make large contributions (often over $100,000/year).

• Roth IRA or Roth 401(k): For tax-free withdrawals later in retirement, especially helpful if you expect your business income to continue into retirement years.

Choosing the right plan depends on your income, number of employees, and retirement timeline. The earlier you start, the more flexibility you have.

Don’t Overlook Insurance and Risk Management

Business owners often carry hidden risks that can disrupt long-term plans. Your retirement strategy should also include:

• Buy-sell insurance to fund partner transitions

• Disability insurance to protect income if you can’t work

• Key person insurance to protect the business if something happens to a key employee or partner

• Liability coverage to shield personal assets from business-related claims

Additionally, consider your personal long-term care needs. Women are more likely to live longer and require care, and business wealth alone may not be enough to cover it.

Integrate Business Planning with Personal Financial Planning

Your business plan and financial plan should be working in tandem. That means:

• Coordinating tax strategies between business and personal income

• Understanding how business equity impacts your net worth and cash flow

• Ensuring personal goals like retirement, education funding, and estate planning aren’t left behind

Women often take a holistic view of wealth — looking not just at numbers, but at impact. Your plan should reflect your desire for security, independence, family legacy, and values-driven work.

Final Thoughts

You don’t need to sell your business to retire — but you do need a plan that supports your vision, balances your risks, and builds wealth beyond the business.

Whether retirement is five years away or still evolving in your mind, it’s never too early to start asking the right questions and designing a strategy that gives you options.

For more tips like these, download my free ebook series that covers debt management, growing your income to save more, investing wisely and retirement planning. To learn what it's like to work with a financial advisor, you can book a free call with Life Story Financial.