As you near what once might have been called retirement age, what are your options in the world of work? While many might reduce their workload with their current employer or decide to move into a consultancy role, a growing number of people are choosing to start a business in their 50s, 60s or beyond.

Doing so is often a lifestyle choice, as it offers the opportunity to work flexibly in an area that you feel passionate about. It can also provide an outlet for those who have spent decades in corporate life and want to earn some money doing something different before giving up working for good.

The idea of starting a business later in life is becoming more popular. According to the Office for National Statistics, almost a quarter of the nearly five million self-employed people in Britain were 55 or over in 2019, the most recent figures available.¹

Entrepreneurs are not put off by reaching 65, either: the number of self-employed people this age and over has more than doubled in the past five years, says the charity Age UK.²

There are, of course, some downsides to starting a business at this stage of life. As with any new venture, there is no guarantee of success and the stress levels can be much higher than expected, especially if you have come from a comfortable corporate life. Yet mature founders have the advantage of many years of experience, which can often translate into a successful start-up.

What is behind this growth in older business founders? One reason is that pension freedoms have provided late-blooming entrepreneurs with a cash lump sum that some are using to fund a small business. Another is the wave of corporate restructurings through the pandemic that has left a significant number of older people looking for work after many years as an employee for the same company.

When making these decisions, particularly if drawing down on your pension, it’s always wise to seek financial advice about how it can fit in with your retirement plans. The government website also offers support for older workers who might be looking to go into business for themselves.³

Tony Clark, Senior Propositions Manager at St. James’s Place, says: “One key thing to consider is that even if you’re dipping into your pension at 55, it’s still money that is probably going to be needed during your retirement.

“If you take money from your pension to start a business, you’re robbing Peter to pay Paul. It could be the best thing you ever do, but it could derail your retirement. There is definitely some benefit to keeping your business and your individual pension separate where possible.

“A lot of people like the idea of setting up a business and working for themselves, but not every business is a success and an adviser can point out where the risks lie. If you take money out of your pension and plough it into your business, that’s your pension gone.”

For most of her adult life, Sue was a frustrated balcony gardener based in London, juggling a busy career as a consultant and university lecturer in marketing, innovation, design and business development.

In 2009, she left the city and moved to a Cotswolds cottage with a large, overgrown and neglected garden, where at last she could unleash her true passion and create the kind of outdoor space she’d always dreamed of.

Sue’s eureka moment came as she was gardening and decided she was fed up with poor-quality trousers ripping at the knees, muddy and scratched wrists due to too-short sleeves, and impractical designs with nowhere to safely store hand tools or a mobile phone.

So in 2013, Sue started Genus, a company selling specially designed gardening clothing made from bespoke performance fabrics for rain, sunshine or cold. The garments’ features include padded knees, stab-proof pockets for secateurs and higher waistbands for back protection.

“Launching a new-to-the-world product is a challenge for any business, but especially for a micro-enterprise entirely funded and run by a 60-year-old,” says Sue.

The business struggled to grow in the early days, but interest really took off in 2020, when sales doubled year-on-year as people turned to gardening as a lockdown activity. In 2021, sales increased by 162%. Sue is now looking for funding to grow the business even more and establish it as a truly global brand.

Sue, now 70, advises other older entrepreneurs thinking about starting their own business to work on their idea and then go for it. “Have no fear,” she says. “Your age is just a number. You need to think positively and remember that your ideas are just as innovative as any young entrepreneur’s, your energy levels are high, and you have plenty of time ahead of you to do what you need to do.”

For help with your finances as you establish your business, speak to us today.