Jimmy Sheehan of Contracting PLUS (pictured) looks at the growing phenomenon of people working beyond their official retirement date.

With talk of full-employment and businesses finding it impossible to source experienced talent, thoughts turn to a valuable cohort of potential workers, who are, in general, financially secure, largely independent, and who have much to offer in terms of experience. And yet,many of these people are often not readily ‘employable’.

There can be both a perception problem and practical issues for employers, when it comes to employing ‘an OAP’, regardless of their skills or knowledge. However, many employers are happy to tap into that resource on a needs basis, with contractors.

At Contracting PLUS, we see many skilled employees in sectors like finance, IT, logistics and project management transition seamlessly into professional contracting.  In fact, individuals with long proven expertise in industry are being snapped up for project work in major companies, for start-up support for new entrants to the market, and part-time roles where a full-time resource isn’t justified.

Incentives for employers to open their eyes to the resource represented by our ‘pensioners’ are surely merited; along with positive messaging around the many role models, well into their 60s and 70s, that are active as both captains of industry and part-time crew?

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Ireland will have one of the highest State pension ages in the world by 2028, when the State retirement age will be 68.  If someone ‘must retire’ at the age of 60 or 65, then there is a wait of between three and eight years before the State pension kicks in.

Even trickier for the people granted mortgages calculated up until the age of 70; retiring at 65 means there are still five years of mortgage payments left.

The growth in consulting and contracting towards the end of a career is not all motivated by finances, however.  Some people that have been in full-time employment all their lives may find setting up as a contractor daunting.

Apart from the choice and freedom that contracting affords all independent professionals, there are other reasons an over 55 would opt to contract. For a business owner, there are tax advantages to selling their business between the ages of 55 and 60, and yet it can be important for the new owner to retain their skills and intrinsic link to the business or brand identity.

Retirees can start to build a business that they might want to get their children involved in at some point.  Contracting is a great means to test the market and build contacts and a client base; and having a limited company structure can be a smart way for a contractor to start.

Job satisfaction is also a powerful motivation.  For many people their career has been a major part of their life, and most have progressed to a role they enjoy.

The constraints of a set workplace or lengthy commute no longer necessarily apply.  A contracted project or support role doesn’t need to happen on the client premises.  Many contractors work from home at self-appointed hours. There isn’t the stress of a full-time job, and working on an ad-hoc consultancy basis is an ideal transition to eventually downing tools at a later stage.

It may be a generalisation, but not everyone likes gardening, and retired people may just prefer to have a hobby in business, as opposed to in the front garden.

•  Jimmy Sheehan is Commercial Director at Contracting PLUS , which supplies accounting, tax and financial advisory services to independent professional contractors.