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The traditional idea of retirement is evolving. What was once considered a ‘winding down’ phase of working life is increasingly becoming an opportunity to embrace professional challenges and fulfil personal ambitions.
Our experience and attitude to ageing has changed, but unfortunately, employers have been slow to adapt. Many organisations are accused of holding outdated views, often overlooking the value and experience that older employees bring.
Faced with fewer development opportunities, a higher risk of redundancy and in some cases insufficient savings, more people aged 50-plus are redefining the next phase of their career by going self-employed.
We spoke to experienced freelancers, including one couple running a business in their 70s, to explore how self-employment combines flexibility with financial security.
Improve your financial outlook
According to the think tank Centre for Ageing Better, millions struggle financially when they reach state pension age. For many, the greatest difficulties tend to come just before age 66, because workers in their 50s and 60s find it harder to stay in employment.
Around 18% of pensioners were recorded as living in poverty between 2019 and 2020, a figure that has increased steadily since 2012. People aged 60 to 64 are more likely to live in poverty than adults of any other age and insufficient pension savings to cover rising costs have forced some retirees back to work, effectively ‘unretiring’ because they need the money.
As the financial implications of leaving work loom, people as young as 40 may experience ‘retirement anxiety’, according to financial planning advice company Abrdn.
NerdWallet spoke to Dr Eliza Filby, a writer and researcher on generations, ageing and families who said that Generation X (those aged 44 to 59 in 2024) experience greater financial pressure in their 50s because they are “not as rich as the baby boomers and their kids are more expensive”. Many young people continue living with their parents well into their 20s and rely on the bank of mum and dad to get onto the housing ladder.
How self-employment could help
Whether you need to top up your pension or have a family to support, going self-employed could enable you to maintain an income without the ties of working for someone else.
If you have reached retirement age but still want, or need, to work, access to regular pension income could make self-employment feel less risky.
“Accessing my teacher’s pension was a crucial factor in my decision to leave full-time teaching,” said Gill White. She and her husband Peter run a pottery business which they started in their 60s. “Knowing I had sufficient funds each month gave me the confidence to pursue my dream of working for myself,” explained Gill.
Don’t let ageism stifle your ambitions
Many workers over 50 are far from ready to wind down, with one-fifth of those aged over 55 delaying their retirement plans.
“I don’t feel like my career is grinding to a halt at all. I feel quite charged up and excited,” said 62-year-old Marina Gask, who was made redundant from her role at a magazine and has been self-employed for sixteen years.
However, people aged 50-plus typically experience higher redundancy rates compared to younger age groups and companies often undervalue older workers. Recruitment firm Robert Walters found almost three-quarters (73%) of over-50s believe they have been overlooked for a promotion.
Finding employment after redundancy can be extremely difficult due to ageism in recruitment. One in seven applicants (in the over-50s category) has been turned down for jobs because of their age, according to research by Total Jobs.
“You’ve got people who are super qualified and very experienced applying for hundreds of jobs and just not even getting an interview because of their age,” said Marina, describing ageism as “the last great prejudice”.
“It’s a tragedy because there’s a real skills shortage in the UK, and many of those over 50 could be plugging the gap,” she said.
How self-employment could help
If you’ve been made redundant and struggle to land a new job, working for yourself could be a way to monetise your skills.
Working as a freelancer or consultant in the industry where you were previously employed can be “a good way to achieve the balance of income and flexibility,” said Marina.
Put your health first
As we get older, our health can’t always be taken for granted, but demanding jobs can make it difficult to prioritise.
Research by the Centre for Ageing Better found that the over 50s are 60% more likely to fall out of employment due to long-term health conditions, compared with other younger adults.
Health scares can be a key driver for people to rethink their approach to work. Peter found running his engineering business full time was “stressful and incredibly time-consuming,” leaving him with little time to spend with my family. “The tipping point came when I suffered a heart attack on Christmas Eve. That experience made me reevaluate my life choices,” he explained.
How self-employment could help
The physical demands of face-to-face work can take their toll, but self-employment – particularly remote work – can enable people to keep working for longer.
“Technology has facilitated this hugely…you don’t have to be running around commuting,” said Eliza.
Peter now benefits from the freedom to structure his working days according to how he feels. “Sometimes I start early and finish by lunchtime, or begin in the afternoon and work into the evening,” he said.
As well as looking after their own well-being, many people over 50 have caring responsibilities which are easier to manage when self-employed. “I’m at a point in my life where I’ve got elderly parents. I like knowing that if I need to drop everything, I can,” said Marina.
Do more of what makes you happy
Working for yourself typically means missing out on paid time off, but it can enable you to spend more time doing things you enjoy.
“We can take holidays whenever we want, even on short notice, without the need for long-term planning,” Peter explained.
Being business partners also means the couple can spend time together, being creative. “We love spending mornings together at the pottery wheels, throwing pots while listening to music,” Gill says.
While stepping away from a stable career to follow your dreams can be daunting, it can be incredibly rewarding and could transform how you feel about work.
“I’ve never really considered myself retired, I simply transitioned from one career to another,” said Peter, who was 69 when he left his job as a teacher to pursue his passion for pottery.
“I enjoy every moment of it and can’t imagine retiring in the traditional sense—I’ll keep going as long as I can.”
Image source: Getty Images
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