Over-65s self employment is rising as retirement goes on hold

Over-65s self employment is rising as retirement goes on hold

Our latest analysis suggests that over-65s are increasingly turning to self-employment to help boost retirement saving.

The analysis of the most recent Government data shows a 20% increase in the number of full-time and part-time self-employed workers aged 65-plus in just three months from nearly 435,000 to more than 523,000.

The data shows the number of over-65s working as employees or self-employed is at a record high of 1.468 million with the self-employed accounting for around 35% of the total number of those working at 65 and over. The number of over-65s in the workplace previously peaked in the first quarter of 2020 at just over 1.4 million.

Self-employed over-65s account for around 12% of the total 4.24 million self-employed workers in the UK as a whole. We believe the rise in over-65s working for themselves is partly driven by the need to boost retirement income.

Working over-65s are most likely to be found in service sectors including education, accommodation, and food services as well as the arts, entertainment, and recreation,

SIPP Managing Director Hrishi Kulkarni said: “Working past traditional State Pension Age is becoming more popular and that applies just as much to self-employment as it does to employment.

“Working past 65 can make a major difference to retirement income as it enables investors to increase their future retirement income while also potentially leaving their fund invested for longer.

“They may also have built up retirement savings from previous employment and can benefit from consolidating their funds into one potentially improving returns and reducing fees while they plan for stopping work.”

UK residents aged under 75 can continue to pay into a pension up to the age of 75 and receive tax relief. It is even possible to join a company scheme at 65-plus.

Our digital pension consolidation service is available to all customers with UK pension funds who are working or have worked in the UK. Built around flexibility, we provide access to over 100 funds under our ‘Create’ option, allowing users to build their own portfolio. Our ‘Choice’ range include Ready-Made Portfolios from world-leading fund managers BlackRock and Schroders. BlackRock’s multi-asset, risk-managed MyMap range of funds are available which include an ESG fund and we also provide access to the Schroders’s Shariah compliant fund. Focusing on transparency, the annual trust fee is £200 plus a 0.25% platform services fee. Funds with OCF (Ongoing Charges Figure) start at as low as 0.17%.




The content of this article is for general information purposes only and should not be construed as legal, financial or taxation advice. You should not rely on the information contained in this article as legal, financial or taxation advice. The content of this article is based on information currently available to us, and the current laws in force in the UK. The content does not take account of individual circumstances and may not reflect recent changes in the law since the date it was created. It is essential that detailed financial and tax advice should be sought in both jurisdictions and any legal advice, if required.

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