The non-retirement retirement

NEW YORK (CNNMoney.com) -- Instead of settling into a retirement lifestyle, some would-be retirees are opting to use their capital to continue working - but this time, on their terms.

Of the 78 million baby boomers in the U.S., 76 percent intend to keep working in their retirement years, according to Merrill Lynch's new retirement study.

And more than half of those surveyed plan to change their line of work or have already taken steps to start a new career.

In fact, many baby boomers near retirement age are deciding to start their own business.

"It's a trend we're seeing lately," said Maria Coyne, the executive vice president for KeyBank and head of Key4Women, Key's women-owned business banking program.

While some baby boomers near retirement age are realizing that they don't have enough savings to retire comfortably, others are choosing to venture on their own because they want to translate the success from their corporate job into a position that offers more independence and control, Coyne said.

And retirees are using what they acquired in the corporate world - such as management experience, a strong work ethic, business contacts and capital - to launch their own startup.

Throughout her 25 years with Hewlett-Packard (Charts), Susan Evans dreamed of venturing on her own. Finally, in 2005, the 48-year-old Evans left the company and launched Social Essence, an etiquette and leadership school based in Eagle, Idaho, that's dedicated to building self-esteem in children and young adults.

The idea occurred to her one afternoon over tea with her daughter, Audra. "It hit me like a ton of bricks," she said. "In order to be successful adults, our children must learn etiquette and social skills."

Evans used her business background to get her company off the ground - and although Social Essence has yet to turn a profit, Evans is focused on future success.

"The challenge is focusing on long-term goals, doing my homework and making the right decisions on how to grow," she said.

Phyllis Keith, another former executive with HP, jumped at the chance to walk away with a severance package from the computer maker. But she didn't intend to put her money toward a condo in Florida.

Instead, she cashed in her 401(k) and started a business called Wear Ease, which makes bras for women with physical limitations due to illness or injury.

"When a woman can't dress herself, she doesn't leave the house," Keith, 57, explained. "She doesn't want to go to therapy,"

"It's about quality of life and increased independence, about being comfortable and feeling attractive," she added.

But without much of a market for her product, Keith knew that using her retirement fund was a big risk.

"I was and am worried about it because it took a lot of money," she said. "There were a lot of sleepless nights. On the other hand, I just thought, I'm not looking back."

But Coyne vehemently cautions against would-be retirees cashing in their nest eggs to follow a business dream.

"Exhaust other avenues first," she said, including drawing on personal credit, grants, loans and asking family and friends for financial support.

"Personal savings should be fallback," she said. "That is the danger zone of this trend."

Keith continues to put all of her resources into the business and has yet to draw a salary for herself or divert any portion of Wear Ease profits into a retirement fund.

"I certainly hope to retire before my mid-60s," she said. "But I don't know if I'll ever retire, retire."

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