The retirement transition from self-employment: comparing the solo self-employed and company owners in Finland

Retirement from self-employment is receiving increasing attention due to population ageing. It is a critical event for the self-employed, influencing their identity and well-being. It also is a critical event for their businesses, influencing the national economy. This study explores differences in the retirement transition between the solo self-employed and company owners. A multichannel sequence analysis and cluster analysis are carried out with Finnish register data, tracing the ages 50 to 69. Findings show that the solo self-employed form a homogenous group, retiring at age 65 with an old-age pension. They follow state pension regulations. In contrast, company owners form a heterogeneous group, displaying agency. Some retire with an old-age pension at 65. Others work until 56 and receive a pension from 65 on. Others switch to employment and then retire with a pension at 65. A non-employment or employment spell before retirement means that businesses have untapped potentials.