Over 55s Cash in Pensions to Access £400m Business Funding
Small businesses launched by “olderpreneurs” are more likely to be successful that those started by younger business owners
UK business owners aged over 55 are planning to cash in £400m from their pensions in order to grow their small businesses, Clifton Asset Management and Pensionledfunding.com have estimated in new research
The research stated that entrepreneurs over 55 years-old, referred to as “olderpreneurs”, have been utilising the government’s pension freedoms – introduced in April this year – to access a tax free cash lump sum to fuel their business ventures
According to the latest Global Entrepreneurship Monitor, entrepreneurial activity among over 50 year-olds has increased by over 50% since 2008 and the report suggests that over 55s are now using their pension to launch companies instead of using it to “go on cruises”.
The report also highlighted recent research by PRIME which indicated that companies launched by olderpreneurs are more likely to succeed than those started by younger business owners. 70% of businesses started by those aged over 50 are likely to survive for at least five years compared to just 28% of businesses started by younger counterparts.
Chairman of Clifton Asset Management and Pensionledfunding.com, Adam Tayener, commented:
“We have seen a marked rise in entrepreneurs aged over 50 looking to use their pensions to either start a business, or fund an established enterprise. However, the government pension changes are not a giveaway for all business owners – particularly for those that wish to mobilise tens of thousands of pounds from their pension to fund their business.
“Providing funding to these experienced individuals, who have the energy and enthusiasm to start and run a business, is vitally important to the growth of the UK economy. Research has shown that if the employment rate of 50 to 64 year-olds matched that of the 35-49 age group, the UK economy could be boosted by £88bn.”