One in ten company directors in the UK now working past state retirement age of 67

Unsplash - 25/06/2025

620,000 company directors in the UK are now aged 67, the state retirement age, or older, shows research by Bowmore Financial Planning.

Bowmore’s research, based on Companies House filings, also shows there are 445,000 company directors over the age of 70, as well as 105,000 company directors working past the age 80.

Bowmore says that the large number of directors working past the state retirement age shows many have not saved enough for their retirement. Higher retirement costs and longer life expectancy are forcing some business owners to work much longer, to fund their retirement, than they had initially planned.  

Bowmore adds it is common for entrepreneurs to defer saving into their own pensions, opting instead to invest almost all their spare funds back into their business. This means owners could potentially be tied down working long after they reach the state retirement age if they struggle to sell their businesses. 

Many directors are struggling to sell their businesses due a drop in overall M&A activity in the UK, brought on by higher interest rates and slow economic growth. This leaves owners with fewer opportunities to exit their businesses and using the profits to fund their retirement.

Charles Incledon, Client Director at Bowmore Financial Planning: “Many company directors haven’t yet saved enough for a comfortable retirement. It’s forcing many of them to work longer than they’d ideally like.”

“Centring your retirement strategy around selling your business can be a very high-risk approach. If it doesn’t pan out as expected, you can easily find yourself working into your seventies – or even beyond.”

Business owners are now facing higher Capital Gains tax from selling their businesses. For additional rate taxpayers, this increased to 14% in April 2025 and will rise further to 18% in 2026. This leaves owners selling their businesses with fewer funds to rely on in retirement.   

Adds Charles Incledon: “Tax rates may increase further before you decide – or are able – to sell your business. Business owners should plan for their personal retirement independently of their plans for their company.”

“Working past retirement age can be a very fulfilling thing to do for some – so long as it’s done by choice. For those who are forced to do so because of their financial circumstances, it’s often stressful and demoralising.”

Based on 6.6 million company directors whose age is known

Source: Companies House

CGT rate applies to sales of companies that qualify for Business Assets Disposal Relief (BADR). BADR reduces the CGT rate for individuals making certain disposals e.g. sales of shares of trading companies

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