A surprising trend is emerging across the European Union: many old-age pensioners are choosing to remain active in the labor market. This is confirmed by data from the 2023 EU Labour Force Survey (LFS), conducted by Eurostat. It more specifically reveals that a significant portion of self-employed seniors turn into self-employed pensioners. They are either continuing their work or re-entering the workforce after receiving their first old-age pension.
This phenomenon, coupled with a strong inclination toward part-time employment, sheds light on evolving retirement patterns and the unique role self-employment plays in shaping post-retirement work.
In this article we will go deeper into these trends, their variations across EU countries, and the broader implications for society, policy, and individual well-being.
Self-Employed Pensioners Redefine Retirement
Retirement is no longer a one-size-fits-all milestone. For many self-employed seniors, the transition from full-time work to retirement is not a clean break but a gradual shift. According to Eurostat’s 2023 EU Labour Force Survey, 56.4% of self-employed seniors in the EU continued working or re-entered the labor market after receiving their first pension. This figure is proof of a significant divergence from traditional retirement norms, where individuals typically cease all professional activities upon reaching pension age.
The decision to continue working after retirement is particularly pronounced among the self-employed seniors, who often have greater flexibility and autonomy compared to employees in traditional roles. For many, self-employment is not just a job but a lifestyle, built on years of personal investment, passion, and expertise. Whether it’s a small business owner, a freelance consultant, or an artisan, the self-employed often find it difficult – or undesirable – to fully step away from their work.
This trend varies significantly across EU countries. The table below, derived from the EU-LFS dataset, shows the percentage of self-employed old-age pensioners who continued working or re-entered the labor market in 2023:
| Country | % of Self-Employed Pensioners Working |
|---|---|
| Sweden | 98.4% |
| Finland | 88.0% |
| Ireland | 87.7% |
| Slovenia | 40.4% |
| Greece | 20.3% |
| Spain | 18.2% |
| EU Average | 56.4% |
Sweden leads with an astonishing 98.4% of self-employed pensioners continuing to work, followed by Finland (88.0%) and Ireland (87.7%). In contrast, Spain (18.2%) and Greece (20.3%) report significantly lower rates, with Slovenia (40.4%) also below the EU average.
These disparities likely reflect a combination of factors, such as pension system generosity, economic conditions, and cultural attitudes toward work in retirement. For instance, in countries like Sweden and Finland, robust social safety nets and high living standards may enable self-employed individuals to work out of choice rather than necessity, pursuing projects aligned with personal interests.
Conversely, in Spain and Greece, economic challenges or restrictive pension rules may discourage continued work, though these are hypothesized reasons not directly confirmed by the data.
Part-Time Work is The Preferred Choice for Pensioners
For many old-age pensioners who remain active in the labor market, part-time work is the preferred mode of employment. The 2023 EU Labour Force Survey indicates that 10.2% of old-age pensioners aged 50–74 were employed in 2023, with more than half (57.0%) working part-time, compared to just 16.2% of non-pensioners in the same age group. This preference for part-time work likely reflects a desire for flexibility, work-life balance, and a gradual transition into retirement.
The prevalence of part-time work among pensioners varies widely across EU countries. The table below summarizes part-time employment rates for old-age pensioners and non-pensioners aged 50–74 in 2023, along with the percentage point difference between the two groups:
| Country | Part-Time (Pensioners) | Part-Time (Non-Pensioners) | Percentage Point Difference |
|---|---|---|---|
| Croatia | 89.4% | 3.4% | 86.0 |
| Sweden | 79.2% | Not specified | Not specified |
| Belgium | 78.0% | Not specified | Not specified |
| Netherlands | 57.8% | 39.4% | 18.4 |
| Latvia | 23.2% | Not specified | Not specified |
| Lithuania | 19.0% | Not specified | Not specified |
| Bulgaria | 9.2% | 1.2% | 8.0 |
| EU Average | 57.0% | 16.2% | 40.8 |
Croatia stands out with the highest share of part-time employment among old-age pensioners (89.4%), with a striking 86.0 percentage point gap compared to non-pensioners (3.4%). Sweden (79.2%) and Belgium (78.0%) also report high shares of part-time work among pensioners. In contrast, Bulgaria has the lowest share (9.2%), followed by Lithuania (19.0%) and Latvia (23.2%). The Netherlands, known for its high overall rate of part-time employment, shows the smallest relative difference between pensioners (57.8%) and non-pensioners (39.4%), suggesting part-time work is already a norm across both groups.
Why Work After Retirement?
The decision to work after retirement, particularly for self-employed pensioners, is influenced by a mix of personal, financial, and societal factors. For many, work is a source of identity, purpose, and fulfillment.
Unlike employees tied to rigid schedules, self-employed individuals often have the freedom to tailor their work to their skills and interests. A retired carpenter, for example, might take on occasional projects, while a consultant might continue offering expertise part-time.
Financial considerations also play a role. While pensions (statutory, occupational, or personal) provide a safety net, they may not always suffice to maintain a desired standard of living, especially for self-employed individuals who may lack access to robust occupational pension schemes.
Part-time work offers a way to supplement income without the demands of full-time employment. Additionally, continuing work can promote mental and physical well-being, combat social isolation, and maintain professional networks, particularly for self-employed individuals with strong client relationships.
Policy Implications and Future Trends
The growing prevalence of work after retirement, particularly among self-employed pensioners, has important implications for policymakers, especially as Europe’s demographic landscape shifts. By 2050, Europe’s old-age dependency ratio is projected to reach 52%, meaning there will be 52 individuals aged 65 or older for every 100 working-age people, according to Eurofound’s Keeping Older Workers in the Labour Force report. This demographic shift underscores the economic necessity of retaining older workers, including self-employed pensioners, in the labor force to alleviate pressure on pension systems and support economic growth.
Policies must account for diverse national contexts. In countries like Sweden and Finland, where post-retirement work is common, policies could focus on supporting flexible work arrangements, such as tax incentives for part-time self-employment or streamlined regulations for small businesses. In contrast, countries like Spain and Greece may need to address barriers, such as restrictive pension rules that limit combining pensions with earned income or limited opportunities for part-time work. The variation in pension types (statutory, occupational, personal) and their rules across countries further complicates these dynamics.
The high prevalence of part-time work among pensioners suggests a need for labor market policies that prioritize flexibility. This could include promoting job-sharing models, reducing administrative burdens for self-employed individuals, or creating training programs to help older workers adapt to changing market demands. Encouraging post-retirement work, particularly in flexible roles, could help mitigate the challenges posed by an aging population while allowing older individuals to remain active contributors to the economy.
A New Vision of Retirement
The 2023 EU Labour Force Survey paints a picture of a shifting retirement landscape, where work and retirement are no longer mutually exclusive. For self-employed pensioners, continuing work – often part-time – offers a way to stay engaged, supplement income, and maintain a sense of purpose. While the extent of this trend varies across the EU, with countries like Sweden and Croatia leading the way, it reflects a broader redefinition of what it means to retire in the 21st century.
The focus must be on creating an environment that supports choice and flexibility. Whether it’s a Swedish entrepreneur mentoring the next generation, a Croatian artisan taking on occasional projects, or a Belgian consultant balancing work with leisure, the future of retirement is one of possibilities. For self-employed pensioners, work after retirement is an opportunity to redefine aging, work, and fulfillment in a rapidly changing world.
