RESEARCH published by AXA Wealth shows many over 55s are considering starting their own businesses in the wake of the pension reforms.

Findings carried out on behalf of the Basingstoke headquartered pension investment specialists, which questioned 1,500 people, indicate that one in ten of the UK’s over 55s, who are due to retire in the next 18 months would consider drawing down on their pension pots to start a small business or go into consultancy.

This ‘later-life entrepreneurs’ trend could see over half a million over 55-year-olds shun retirement in favour of starting up their own business venture.

The average value of a pension pot of those asked was found to be £550,000, and of those considering withdrawing money to invest in a new business, almost half (47 per cent) intend to use their 25 per cent tax-free lump sum to fund their start-up.

The top three reasons for starting a business with released pensions funds was realising a lifelong dream to be a business owner, cited by 35 per cent, while monetising a hobby was revealed as the investment incentive for a quarter.

Nineteen per cent said they are driven by the urge to utilise the experience and skills gained throughout their professional career in order to supplement their pension income.

Adrian Lowcock, head of investing at AXA Wealth said: “We’re seeing a revolution when it comes to retirement spending.

“The widespread concern that pensioners will blow their whole pension on a supercar feels exaggerated.

“Instead we are seeing a diverse approach, with the over 55s taking to the freedom and opportunities created by the pension reforms – in this case fuelling a whole new generation of later-life entrepreneurs.”