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Being your own boss when you?re over 50

There has been a marked increase in the number of people still in employment after reaching state pension age here in the UK; in fact, this figure has almost doubled over the last twenty years, rising from 753,000 in 1993 to hit the 1.4 million mark in 2011. According to the latest data from the Office for National Statistics, this represents around nine per cent of the total number of people over state pension age in the UK today. To put this into context, the number of people in employment above state pension age has grown at a faster rate than the UK’s population.

Now that employers can no longer force retirement (after legislation that came into effect on October 5 2012), the decision to keep working is well and truly in the hands of the individual, so needs to be considered carefully.

It seems that the more mature working population accounts for more than just a substantial proportion of employees. Research carried out in 2011 by Nominet Trust found that entrepreneurs are more likely to be over 55 rather than being aged 25 to 34, so this more experienced demographic is out doing it for themselves. In fact, 32 per cent of older workers are self-employed, compared to 13 per cent of workers at a younger age. These figures giverise to questions about why people over 50 would wish to keep working, and why they would choose to start out on their own.

Staying in employment past 50: regional factors

For those considering working beyond state pension age, figures from the Office for National Statistics show that employment prospects for the older population as a whole are better than they are for the younger demographic - but there are regional variations.

For example, the prospects for 50+ workers in London are good - the capital ranks eighth outof the 12 UK regions in terms of the percentage of young people in employment, but sits second from the top when it comes to employment of those above state pension age, just behind the South East. At the other end of the scale, the North East has the lowest number ofpeople above state pension age still in employment.

While it may seem location can play a role in determining a person’s likelihood of staying on in a job past state pension age, many experts believe being 50+ could make a person particularly suited to one aspect of work: being their own boss.

Becoming a 50+ entrepreneur

Author Barrie Hopson notes in his blog, The Pluses of Being 50 Plus, that 48 per cent of over-50s are more likely to succeed in creating their own business than any other age group. He credits this in part to the personality traits that often come with age, describing those aged 50+ as “more mature, less stressed, usually [with] better interpersonal skills withcustomers [and] more reliable. They are also fit and healthy,” Mr Hopson notes, “25-year-olds 50 years ago were not as fit as 50-year-olds today.”

Mr Hopson’s experience suggests that older people do have the motivation needed to seek alternative routes of employment. He notes: “Rather than give up, [people aged 50+] are experimenting with new ventures, portfolio careers, part-time work and volunteering.”

The Prince’s Initiative for Mature Enterprise (Prime) also believes that people aged over 50 are great candidates to become entrepreneurs as they can utilise the skills and work experiences they have built up over a lifetime of employment. While more mature individualsmay bring an abundance of skills to a new business, becoming self-employed could also grant older people financial, social and personal fulfilment, Prime explains.

With the aim to help people in the 50+ age group set up their own business, Prime offers information, workshops and the chance to network in order to grow a business. The organisation also offers a gateway to free business advice and mentoring, so help is out there.

Despite the increase in the number of older people in employment, research is revealing the benefits of becoming your own boss aged 50+. A study conducted in 2007 by KingstonUniversity’s Small Business Research Centre showed that the greatest motivation for older entrepreneurs - dubbed ‘olderpreneurs’ - was the desire to do something pleasurable (39 percent), followed by achieving a better work-life balance (29 per cent) and not wanting to work for someone else (24 per cent). The study also found that, despite the fact that 79 per cent ofthem work alone, almost half of all 50+ entrepreneurs are happier than they have everbeen.

For those who are concerned about unemployment after the age of 50, or who wish to keep ahold of the financial security and personal benefits of having a job but with more freedom, starting a business may be the right step. Best of all, far from being a barrier, their age could be the very thing that aids their success.

For more information on Insurance for the Over 50’s visit Castle Cover.

This was posted in Bdaily's Members' News section by Castle Cover .