Over-50s a growing force in UK economy

The data suggests that an increasing number of 50-64-year-olds choose not to retire and instead stay active in the labour market, with the rate of employment rising significantly between 2012 and 2016 from around 65% to 71%.

CEBR projections show that the number of employed 50-64-year-olds will surpass 9 million before the end of 2018, and by 2021 there will be 10 million people from that age category in work.

Notably, if the over-50s maintain their growth in business activity, they will represent the majority of the self-employed workforce in the UK by 2024.

Businesses owned by over-50s employed more people than those run by younger individuals for the first time in 2016 and this gap is only set to widen in the coming years, according to the study, indicating this could be a potential growth market for asset finance.

Robert Gordon, CEO of Hitachi Capital UK, said: “With low productivity continuing to affect many areas of the economy, the message from our research is clear: rather than being a drain on the economy, the over-50’s are becoming increasingly important drivers of the UK’s economic growth.

“This age group is setting up and running their own businesses at a faster rate than any other age group, directly employing nearly 10 million people, 2 million more than the under-50’s and this gap is only set to widen.

“With the valuable experience, skills and networks that over-50s accrue over the course of their professional careers, this segment of society is a source of growth and prosperity and it is essential that we find more ways to support their economic ambitions if we are to rebalance our economy.”

Kay Daniel Neufeld, senior economist at CEBR and author of the report, said: “Self-employment among the over-50s has risen much more quickly than it has for younger cohorts, driven by demographic factors such as the rising average age of UK workers, as well as structural changes in the labour market.

“Interestingly, the data suggests that nowadays older workers more often end their careers in self-employment instead of retiring directly. This sometimes involves a change in occupation, but quite often people decide to stick with their industry following a preference to work more autonomously.”