Starting a Business to Fund Retirement


Up until fairly recently, it was common place to stop work at 60 or 65. Statistically people are living longer. And because of this the Government is increasing the state pension age. The changes will see the state pension age rise to 65 for women between 2010 and 2018, and then to 66, 67 and 68 for both men and women [1], with the possibility of it increasing further. More changes are on the horizon.

So if you are dreading the thought of retiring and not having anything to do but gardening and doing quizzes, you could consider turning a much loved hobby into a business. There are plenty of people who have taken the plunge and done it. With the establishment of compulsory retirement ages and the flexible retirement options now available, most will at least have the option of semi-retirement.

As a nation our life expectancy is rising. When the state pension was introduced in 1909, only a quarter of the population lived until the pensionable age of 70. Today workers not only live to pension age, they spend on average around a third of their life in retirement. In 1917 only seven men and 17 women received 100th birthday greetings sent on behalf of King George V. In contrast, 2013 saw the Queen sending a total of 13,000 birthday messages [2].

The Office of National Statistics has reported that one in three babies born in 2013 will live to celebrate their 100th birthday.

Figures published last week by the Office for National Statistics revealed that around one in three babies born in 2013 is expected to celebrate a 100th birthday.

Gone are the days of working one day and not the next.  More and more people are staying in their jobs longer, staying on part-time, taking on a different part-time job, starting their own business or pursuing a hobby.

Some thoughts before taking the plunge which will help with your financial planning:

  • Assess how much income you will have in retirement – pension and other income you may have
  • Do you need additional qualifications / new qualifications for a change in career?
  • Make inquiries as to if you are entitled to funding – there are business support networks across the country
  • Can you get financial help?

A recent survey published by Scottish Widows [3] found nearly one in three workers planned to reinvent their career instead of fully retiring, either by starting a new job, launching their own business or becoming a consultant.

Some 17pc of respondents said maintaining a regular income stream would be crucial in retirement, while 12pc said they would not want to stop working.

Retirement as traditionally defined, is changing. The idea that someone is working one day and not working the next is disappearing.


Planning what you are to do in your years in retirement is crucial to ensure that you have the funds as well as the lifestyle you want. Bartholomew Hawkins are chartered financial planners with a high level of knowledge and relevant experience who will provide you with appropriate financial plans and advice. Please visit their website for further information.

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