Increasing numbers of over-50s are turning to self-employment to help boost their retirement savings, according to new figures.

The number of self-employed business owners aged 50 and over surged to 1.1 million in 2023 (89,000 more than in 2020).

This was despite the total solo self-employed population falling by 154,000 in the same period, according to data published today by the Association of Independent Professionals and the Self-Employed (IPSE)

Of those aged 50 and over in self-employment, as many as one in six (15%) launched their businesses within the past three years.

Separate analysis of Government data by pension provider iSIPP showed a 20% increase in the number of full-time and part-time self-employed workers over the age of 65 to over 523,000.

The data shows the number of over-65s working as employees or self-employed is at a record high of 1.47m, with the self-employed accounting for around 35% of the total number working at age 65 and over.

The number of over-65s in the workplace previously peaked in the first quarter of 2020 at just over 1.4m.

Self-employed over-65s account for around 12% of self-employed workers as a whole, iSIPP said. The provider said it believes the rise in over-65s working for themselves is partly driven by the need to boost retirement income.

Hrishi Kulkarni, managing director at iSIPP, 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 funds 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.”