Tens of thousands of Brits aged over 50 have started running their own businesses in the past three years, bucking an overall downward trend in self-employment.
New research, conducted by the Association of Independent Professionals and the Self-Employed (IPSE), has found that more than one million over-50s now work for themselves, representing a significant rise in this age group at a time when there has been an overall decline in self-employment since 2020.
The analysis has found that the number of self-employed business owners aged 50 and over rose to 1.1 million in 2023 - 89,000 more than in 2020 - despite the total solo self-employed population falling by 154,000 in the same period.
Furthermore, of those aged 50 and over in self-employment, as many as one in six (15%) launched their businesses within the past three years.
Released annually, the IPSE Self-Employed Landscape report provides a snapshot of how the freelance sector's size, demographics and economic impact have changed in the past year.
UK self-employment sector
The report has also found that the sector's economic contribution soared by more than £50bn in 2023, to a total of £331bn, after declining in 2022.
The sector continues to be predominantly male, with the gender distribution of the sector standing at 61% male to 39% female, with a one percentage point swing towards female in 2023. This continues a long-term trend towards more women in self-employment, which has grown by 63% since 2008.
IPSE's director of policy, Andy Chamberlain, said: "It's clear that self-employment's offer of independence and autonomy in work are particularly attractive to experienced professionals, especially if they have lost an employed role or have become disillusioned with the 9-to-5.
"Many harbour dreams of starting their own business, whether it's to pursue a lifelong dream, increase their income or find a better work-life balance. But the over-50s, now in the prime of their careers and with decades of experience under their belt, likely have even more confidence in their ability to make a success of it.
"The UK is fortunate to have a vibrant self-employed sector that offers a fresh shot at success to people at any stage in their careers, and we should celebrate the fact that tens of thousands more people - especially those over 50 - are doing just that."
New data on retirement suggests that most Brits are likely to work until late into their 60s. Research by Flagstone, published in January 2024, shows that 58% of people expect to retire between 65-69 and 12% say they won't retire until they are in their 70s. Just 1% say they plan to retire before the age of 55, 5% say they'll retire between the ages of 55 and 59, while 20% will retire aged 60 to 64.
Written by Rachel Miller.