1
The prolongation of life expectancy, concomitant with the shrinking of
the younger population, has brought about a shift in old-age dependency
ratios and placed an unprecedented level of pressure on already fragile
pension systems in many developed economies (Watkins-Mathys 2012;
OECD 2013). In the context of a rapidly ageing workforce, impending skills
shortages, a tightening labour market, upwards shifts in the minimum age
at which individuals become eligible for pensions and the gradual degra-
dation of both private and public pension schemes and in an effort to
avert the impeding “pensions crisis”, governments have adopted strategies
such as encouraging delayed retirement (Orenstein 2011; Watkins-Mathys
2012). For instance, in the United Kingdom, the Default Retirement Age
(DRA) was fully abolished in 2011 (Flynn et al. 2014), while the Japanese
government has raised the mandatory retirement age twice since the
1990s (Wood, Robertson and Wintersgill 2010). Such developments have
in turn brought about considerable debate in academic and policy circles
on ways to prolong the working life of productive older workers (Taylor
et al. 2012; Baruch, Sayce and Gregoriou 2014).
Increasingly, self-employment or entrepreneurship is being heralded
as a possible solution to this challenge. Encouraging self-employment
among the populace can prolong working life in two ways. Firstly, self-
employed individuals tend to work longer over their careers than do
waged workers (Davis 2003; Weber and Schaper 2004). In the UK, almost
42 per cent of men over the age of 65 that have remained in the labour
force are self-employed (Sappleton 2013). This tendency to work longer
may simply have to do with a love for the job – the desire to be “one’s
own boss” is perhaps the most frequently cited of the motivations to
enter self-employment (Gatewood, Shaver and Gartner 1995), while
empirical studies have repeatedly found high levels of job satisfaction
Introduction: Pre- and Post-
Retirement Self-Employment:
Broadening Existing Horizons
Natalie Sappleton and Fernando Lourenço
N. Sappleton et al. (eds.), Entrepreneurship, Self-Employment and Retirement
© Palgrave Macmillan, a division of Macmillan Publishers Limited 2015