Monday, June 04, 2018

Survey of U.S. Workers in Gig Economy Looks to Effect on Retirement

A Betterment survey report has been issued on the impact of the gig economy on the future of retirement in the United States. "Gig Economy Workers and the Future of Retirement" highlights data from a survey of 1,000 U.S. respondents, 25 years and older and working in the gig economy. According to the report, several themes emerged regarding two categories of workers: "full-time giggers"--workers who rely primarily on the gig economy for their income, and "side-hustlers"--individuals who rely on a traditional full-time job as their main source of income but supplement with a side gig economy job.

Most significantly, Betterment reports that for many of those surveyed, the gig economy is replacing their retirement plan:
  • 16% plan to depend on gig economy jobs to supplement their retirement;
  • 12% of side-hustlers will keep a side gig job as their main source of income after retiring from their traditional nine-to-five; and
  • 1 in 5 full-time giggers say they’ll continue to pick up incremental work in the gig economy as their main source of income following “retirement”
In addition, Betterment reports that 81% of gig economy workers say they can’t afford to prioritize saving for retirement. In fact, more than half of gig economy workers "turn to this new way of working for financial reasons, not just for the freedom and flexibility it provides." Source: Betterment "Survey: Future Retirees May Rely More on the Gig Economy" (May 18, 2018)

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