Over 50s account for nearly half of UK’s self-employed people

Almost half of all self-employed working people (48%) in the UK are aged 50 and over, according to ONS data analysed by over-50s digital community, Rest Less.

The analysis of bespoke ONS data found the proportion of over 50s becoming self-employed has grown year on year for the last decade, despite the Covid-19 pandemic and changes to the off-payroll working rules and tax allowances for self-employed workers. The proportion of workers under 50 has also been in steady decline over the same period, falling from almost 60% in 2021, to 52% in 2022.

Stuart Lewis, Chief Executive of Rest Less, commented:

“The long term rise in self-employment amongst the over 50s is a significant trend that reflects changing attitudes towards work and retirement amongst this generation. As people are living longer, they are increasingly looking for ways to remain engaged and active in the workforce for longer too.

“Self-employment provides a way for older workers to use their skills and experience in a flexible and autonomous way whilst also generating income and maintaining their sense of purpose. Technological advancements means setting up a business in your 50s or 60s has never been easier and armed with rich life experience and a valuable business network behind them, the appeal of building something of their own or pursuing a passion project can be a powerful draw.”

In 2022, 2,055,843 of the 4,300,509 self employed workforce in the UK were aged over 50. The number of self-employed people aged 50+ has increased by 18% in the last 10 years. In 2012, there were 1,741,996 self-employed people who were aged over 50. In 2022, one in five (19%) of all working over 50s were self-employed compared with one in 10 (10%) under 50s.

Despite the benefits for many older people in choosing self-employment, Rest Less also believes that declining opportunities for older workers in traditional employment has also contributed to the rise in self-employment among over 50s. Stuart Lewis added:

“There is a more sinister side to the rise in self-employment amongst this age group too. Shut out of the mainstream workforce due to a lack of flexible working opportunities and rampant age discrimination in the workplace means many older workers have no choice but to set up on their own. Stuck between a rock and a hard place with a rising cost of living and the state pension age soon to be extended to 67, self-employment can feel like the only option for many who have been denied access to traditional employment.”