More and more people aged 60 and over in the UK are choosing self‑employment, driven by financial needs, flexibility, and a desire to stay engaged and purposeful. Official statistics show that the employment rate for those aged 65 and above has hit 11.9% in 2024 (up from 11.4% in 2023), marking a long-term upward trend.
Across two decades, in-work growth in the 50+ bracket has surged by 4.2 million additional workers. This shift isn’t just about numbers, it’s about changing perspectives on ageing and the labour market. Older adults are carving new paths through consultancy, creative enterprises, gig work and more, often re-entering the workforce or launching micro-businesses late in life.
A Changing Retirement Landscape
Retirement is no longer a single-phase exit from work. In 2000, only 457,000 people aged 65+ were employed; by 2023 that number had risen to 1.4 million, a threefold jump.
The employment rate for 65‑year‑olds climbed from 26.9% in 2014 to 40.4% in 2024. Meanwhile, the state pension age continues to rise, overlapping with the self‑employment surge.
Self‑Employment: A Popular Option for Older Workers
Self‑employment is notably more common in older age groups. The Centre for Ageing Better found that 17% of 50‑64-year-olds were self-employed in 2021, compared to just 13% of 35‑49-year-old.
According to IFS, around 20% of workers aged 60 are self‑employed; this share jumps to nearly 40% for 69-year-olds. Furthermore, self‑employment in the 65+ group increased by 28.7% between Q2 2022, from 264,761 to 340,779 people
Financial Reasons & Pension Shortfalls
Rising living costs and potential pension shortfalls compel many to continue earning. Among self-employed over-55s, 30% have no private pension savings, versus 14% of employed peers. Working post‑65 helps close the gap, but splitting time between self‑employment and state pension can complicate finances.
Purpose, Wellbeing and Social Connection
Retaining a sense of purpose and social engagement is a major motivator. Newcastle University notes that self‑employment affords autonomy and health benefits for older individuals. Personal stories in The Guardian highlight retiree entrepreneurs, like former nurse Kari Johnston or biodiversity tech founder Geoff Carss, who find joy, independence, and fulfilment in their late‑life ventures
Ageism and Barriers
Despite benefits, age-related hurdles persist. According to The Guardian, over 60s launching businesses face discrimination and limited support. Similarly, The Guardian also reports nearly half of recruiters see a 57-year-old as “too old”. Centre for Ageing Better warns that employers must evolve to welcome older talent
Implications for Policy and Employers
Policymakers and business leaders should focus on:
- Providing financial guidance tailored to older self-employed individuals.
- Offering anti-ageism training and inclusive recruitment practices.
- Supporting digital upskilling for late-life entrepreneurs.
- Advising employers on the economic advantage of tapping into experienced older workers.
Conclusion
The increase in self‑employed over‑60s reflects a broader redefinition of retirement, where flexibility and purpose merge with necessity. While financial pressures and pension shortfalls play a role, well-being and autonomy are crucial drivers.
However, ageism and technical barriers remain. Forward-thinking policy and inclusive workplace cultures can help older self-employed workers thrive. Encouraging older entrepreneurship, through tailored financial advice, support networks, and digital training, can benefit individuals and the wider economy.
Frequently Asked Questions
Can self‑employed over‑60s receive their State Pension at the same time?
Yes. You can continue to claim your State Pension while working; any earnings over the personal allowance may be taxed.
How common is self‑employment at older ages?
Around 17% of 50–64‑year‑olds and nearly 40% of 69‑year‑olds are self‑employed in the UK .
Why are pensions insufficient for many?
Rising living costs and limited private pension savings (circa 30%) push many to supplement income through work.
What challenges do older entrepreneurs face?
Ageism and low digital literacy are common barriers, highlighting the need for targeted support.
What can support older self‑employed individuals?
Mentoring, digital training, inclusive hiring, and financial advice tailored to later‑life work can make a significant difference.
