Nearly two thirds (64%) of self-employed workers between 60 and 65 have zero private pension savings, according to a new think tank report.

The lack of pension savings is particularly concerning at a time when the over-60s are the fastest growing group of self-employed workers.

In 1994, around three in four (73%) 65-year-olds were retired, compared to just one in three (39%) in 2024, with a surge of self-employment among over-50s also reported, according to the report from Phoenix Insights.

According to the analysis, one in five workers aged 60-64 are currently self-employed, increasing to one in three for workers over-65.

Patrick Thomson, head of research analysis and policy at Phoenix Insights, said the surge in self-employment among older workers may partially be due to older people struggling to find work.

He said: “Women now make up a much bigger part of the workforce and greater workplace flexibility means more people now transition to retirement gradually, staying in work for longer on reduced hours. There has also been a trend towards self-employment among the over-50s. This can give people more choice and control over their working life, but may also be due to being unable to find work with an employer.”

The average age of retirement for women in the UK has increased by seven years in the last 30 years, with both men and women now retiring on average at age 64. 

In 1994 there were two distinct peaks in when people chose to retire, driven almost entirely by gender differences; women retired on average at age 56 and 10 months and men at 61 and four months. In 2024 the gender differences have largely disappeared with both men and women retiring on average at 64 – a seven-year increase for women and three-year increase for men.

Phoenix Insights is the longevity think tank from retirement and insurance product provider Phoenix Group.

• Ipsos UK surveyed 4,137 UK adults not currently retired on behalf of Phoenix Insights in August.