Millions of people plan to start a new business in retirement

How do you plan to spend your retirement? Enjoy long holidays, take it easy, or carry on working and earning?

Millions of people approaching retirement are planning to reinvent themselves and start their own business, according to new research from Charter Savings Bank.

The bank found that there are 3.5 million so-called 'pension-preneurs' across the UK who have already started their own business, are planning to do so or want to invest in another business during their retirement. And while almost half (45%) plan to start their new venture in the same industry they've worked in during their working life, over a third (37%) want to start a business in a completely different industry.

Overall, one in seven (14%) over-50s have entrepreneurial plans for the years ahead and they expect to spend around £6,300 on their enterprise. Across the country, that works out as nearly £22bn invested in new businesses for the over-50s. One in seven (15%) are planning to invest over £20,000 in their new enterprise.

The majority (76%) plan to use their own personal savings to finance their new business in retirement, but one in 10 (11%) plan to use a lump sum from their pension. Other sources of funds are expected to include loans from family and friends (8%) and business loans (7%).

In fact, very few people approaching retirement are planning to take it easy. The survey of 2,005 adults revealed that the most popular plan is for retirees to volunteer with an organisation or start a charity (33%), while a fifth (22%) plan to start a new job working part-time. Setting up as a freelancer or consultant during retirement is another popular option (12%).

Commenting on the findings, Paul Whitlock, group managing director at Charter Savings Bank, said: "It appears there are millions of people heading towards retirement who don't want to just stop working and put their feet up. They want to continue doing something productive with their time, whether that be working for a charity or starting a business.

"The fact that so many people over the age of 50 want to create a new business or invest in one is inspiring and shows such an entrepreneurial spirit. However, starting a business takes funds and the fact that so many people plan to use their own personal savings to do so highlights how important saving is. Whether spending retirement travelling the world or starting a business, saving as much as possible from as early as possible is absolutely vital."

Whatever you want to do in retirement, Fidelius can help you plan and prepare. We'll get to know your life and finances so that we can give you really informed and tailored advice to help you achieve your goals and secure your future. Get in touch today to find out more!