Older people are increasingly turning to working for themselves to boost their retirement income, according to iSIPP.
Research by the pensions provider found that people aged over 65 are putting retirement on hold and either returning to the workforce as employees or turning to self-employment to improve their retirement finances.
Over 65s can still contribute to a pension and receive tax benefits until they reach 75.
iSIPP’s analysis of the most recent Government data shows a 20% increase in the number of full-time and part-time self-employed workers aged 65-plus in just three months from nearly 435,000 to more than 523,000.
The data shows the number of over-65s working as employees or self-employed is at a record high of 1.468 million with the self-employed accounting for around 35% of the total number of those working at 65 and over. The number of over-65s in the workplace previously peaked in the first quarter of 2020 at just over 1.4 million.
iSIPP believes the rise in over-65s working for themselves is partly driven by the need to boost retirement income and continue to pay into a pension.
Working over-65s are most likely to be found in service sectors such as education, accommodation, and food services as well as the arts, entertainment, and recreation.
Hrishi Kulkarni, iSIPP managing director, said: “Working past traditional state pension age is becoming more popular and that applies just as much to self-employment as it does to employment.
“Working past 65 can make a major difference to retirement income as it enables investors to increase their future retirement income while also potentially leaving their fund invested for longer.
“They may also have built up retirement savings from previous employment and can benefit from consolidating their funds into one potentially improving returns and reducing fees while they plan for stopping work.”
