Intelligence

Why Gig Workers May Never Retire

The gig economy is growing but when it comes to retirement, gig workers and freelancers may be at a huge disadvantage for two reasons: lack of access to an employer’s plan and irregular income, which may make investing consistently more difficult. 1. Many gig workers plan to delay retirement and work longer. How can that strategy backfire and why should gig workers be taking saving for their retirement more seriously? 2. Irregular income can be a barrier to saving for many gig workers. How can gig workers shape an investment plan that accounts for fluctuations in income while still allowing them to grow wealth consistently? 3. Do gig workers need to approach their investment strategy differently, in terms of asset allocation? For instance, if they’re investing smaller amounts or planning to work longer, how does that affect their risk tolerance? 4. Investing cost- and tax-efficiently may become even more important for gig workers who don’t have a consistent income stream. Which investments may be better suited to gig workers than someone who’s investing in an employer’s retirement plan? Or is there any difference? 5. Gig workers aren’t just 20- and 30-somethings. More Baby Boomers are joining the gig economy. How can these older workers in particular adjust their retirement strategy to ensure that they’re on track to meet their goals?