Over 1m over 65s serving as UK company directors
Procorre notes that there are 3.5 million company directors in the UK.
There are 582,000 UK businesses with a director aged over the traditional retirement age – 16% of all businesses in the UK and almost twice as many as employ directors under 30 (296,000).
Procorre explains that a key driver of the trend is the UK’s aging population 17%, or 11.1 million, are aged 65 or older, a 17% increase since 2003. Additionally, compulsory retirement was largely outlawed in 2011, making it easier for older staff to continue working if they choose to.
Wiktor Podgorski, Relationship Manager at Procorre, explains: “The number of older directors in businesses of all sizes emphasises the important role their experience, networks and expertise play in the success of their businesses.”
“Increasing numbers of workers are making the decision to prolong their careers. As the UK’s population ages, and the standard of health for older people continues to improve, it is unlocking the potential for older people to extend their professional lives.”
“Technological advances and more flexible working practices are also playing a part. Older directors have the opportunity to work from home more frequently and Skype meetings mean they can cut down on physically demanding travel schedules.”
“We may also be seeing many women who took a career break while their children were young, now fully devoting themselves to their careers at a later stage. These senior women have gained a & lsquo;second wind’ and want to fulfil their potential after a career break by reaching the very top.”
Changes to pensions and rock bottom annuities lead to many postponing retirement
Procorre adds that low annuity rates (which fell by 5.7% during 2014, to their lowest point since June 2013) mean that even those with substantial pension savings are choosing to defer drawing them and are continuing to work on a part-time or consultant basis.
Procorre adds that there are currently 428,000 self-employed workers over the age of 65, 9% of the total self-employed workforce**.
Reforms to the state pension age mean it is expected that the majority of people will now have to work beyond the traditional age of 65 in order to fund their retirement.
Wiktor Podgorski continues: “Workers at all points of the pay scale are choosing to extend their careers into later life, enabling them to reap greater financial rewards when they eventually retire.”
“Older workers frequently wind down their careers slightly, picking and choosing individual projects. Working as a self-employed consultant with contacts from their previous career is a particularly common model.”