New research revealed that over 740,000 “side hustling pensioners” will need to work to supplement their retirement income.
The research from Direct Line business insurance revealed that 14% of small business owners and sole traders will continue running their business as a “side hustle” as they draw their pension because they can’t afford to retire.
A total of 18% small business owners and sole traders in Greater London said they will need to work to supplement their pension when they reach retirement age.
It found that 20% of small business owners and sole traders are still undecided on what to do with their company when they retire. A total of 22% plan to fold their business upon retirement and 21% plan to sell the firm to either a third party, employees or a friend. A further 17% say they hope to hand their business over to a family member to run when they retire.
Alison Traboulsi, SME product manager at Direct Line business insurance, said: “Being a sole trader or running a business is hard graft. Business owners need to juggle numerous responsibilities day-to-day, but it’s also important to plan for the future. Working beyond the state pension age can of course have several financial benefits.
“If you are fit and enjoy your work it can help keep you mentally stimulated and give you a sense of purpose in retirement. However, that’s not always the case and if the work is physically and mentally demanding, the need to work post-retirement age could easily become a challenge.”