An interesting new study highlights the significant number of self-employed individuals who are over 60.
According to the digital community Rest Less, the number of people over 60 who work for themselves reached a record of 991,432 last year.
Data extracted from the Office of National Statistics (ONS) shows that the proportion of the UK’s self-employed workforce who are ‘older’ is larger than you might expect.
In fact, 49% of the country’s self-employed people are now over 50, and 23% are over 60.
What accounts for the growth in over-60s becoming self employed?
According to the ONS data, the number of people over 60 working for themselves (as sole traders or members of a partnership) has increased from just under 750,000 to its present level (almost 1 million) over the past decade.
There are many reasons why this may be the case, according to the Bytestart team:
Longer Working Lives
People live longer and healthier lives, leading many to work beyond the traditional retirement age. Some opt for self-employment to have more control over their schedules and workloads.
Rising State Pension Age
The state pension age is increasing – it will rise to 67 by 2028, with a further increase to 68 also on the cards.
Surging Cost of Living
The cost of living crisis and rampant inflation have led many older people to postpone retirement.
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Changing Employment Models
How we work has evolved massively in recent years. Traditional employment models have given way to more flexible working methods, and self-employment is becoming more mainstream.
Desire for Flexibility
Many over-50s seek a better work-life balance, which self-employment can offer. This flexibility allows them to manage personal commitments, like caring for elderly relatives or pursuing hobbies and interests.
Career Shifts or Redundancies
As industries evolve and jobs become automated, people in their 50s may face redundancies or find fewer opportunities for full-time employment. Self-employment can be a way to continue earning and stay professionally active.
Pursuit of Passion Projects
Many older adults view self-employment as an opportunity to start businesses based on their passions or lifelong skills, such as consulting, coaching, or starting a small business.
Financial Necessity
Some (perhaps many) individuals over 50 may not have saved enough for retirement or have financial obligations, prompting them to remain in the workforce and turn to self-employment as a viable option.
Technological Advancements
Technology has made it easier for people to start businesses from home or work remotely, empowering older adults to pursue self-employment without needing significant funds or infrastructure.
‘Self employment is a great option’ for the over-50s
Stuart Lewis, Chief Executive of Rest Less, said:
For many, self-employment is a great option as it allows people to remain active and engaged in the community and workforce whilst also providing greater flexibility – leveraging their skills, experience and network to make an impact.
The cost of living crisis of recent years has made it particularly challenging for those relying solely on their state pension and we’ve seen an increase in the number of people turning to self-employment to provide an additional income source and top up pensions whilst they still can.
The total number of self-employed people in the UK is approximately 4.3 million.
