Free for 90 days: Sign up now and get 90 days managed free after your first deposit. See offer details

<title>Dismiss</title>
Investing in Your 20s and 30s

Survey: Future Retirees May Rely More on the Gig Economy

Almost 40 percent of respondents feel unprepared to save enough to maintain their lifestyle during retirement.

Articles by Jamie Cartwright

By Jamie Cartwright
Content Marketing Manager, Betterment  |  Published: May 18, 2018

The so-called gig economy is celebrated for fostering creativity, but has its downsides. Today, more than one in three U.S. workers are freelancers — and this figure is expected to grow to 40 percent by 2020. Increasingly, workers are eschewing or supplementing the traditional “nine-to-five” career with independent or temporary work, but these gig workers face daunting challenges preparing for retirement. Since freelancers don’t have access to employer benefits, such as a 401(k), their savings rate for retirement plan can sometimes be lower.

Analyzing the Financial Effects of the Gig Economy

Recently, Betterment compiled a new report on the impact of the gig economy on the future of retirement in the United States. The report highlights data from a survey of 1,000 U.S. respondents, 25 years and older and working in the gig economy. 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:

Why survey this segment of the population?

From the results, the rise of a modern gig economy may be affecting some Americans’ retirement futures in both direct and indirect ways.

Gigging is the New Retirement Plan

For many respondents, the gig economy is replacing their retirement plan:

  • 16 percent plan to depend on gig economy jobs to supplement their retirement
  • 12 percent of side-hustlers will keep a side gig job as their main source of income after retiring from their traditional nine-to-five
  • 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”

The Gig Economy is a Debt Economy

Betterment’s survey found that 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. While retirement catch-up is part of the equation, debt plays a big role in why 81 percent of gig economy workers say they can’t afford to prioritize saving for retirement.

Being Tech-Savvy Doesn’t Translate to Finances

Giggers are tech-savvy by nature, but there’s a major disconnect when it comes to the way they’re approaching personal finances. Fifty-nine percent of respondents use a digital platform for their job, but only 19 percent use a digital platform for saving and 28 percent use one for online investing.

The full report showcases these themes and other details. Download and read, Gig Economy Workers and the Future of Retirement to get the full scoop.

Recommended Content

View All Resources
Survey: Future Retirees May Rely More on the Gig Economy

Survey: Future Retirees May Rely More on the Gig Economy

Almost 40 percent of respondents feel unprepared to save enough to maintain their lifestyle during retirement.

Redesigning How You Manage Your Finances at Betterment

Redesigning How You Manage Your Finances at Betterment

Our new design represents a synthesis of a large body of customer feedback. We hope it meets your expectations.

3 Tips for Managing Money Effectively as a Cohabiting Couple

3 Tips for Managing Money Effectively as a Cohabiting Couple

Unmarried couples living together likely have just as much joint financial responsibility as married couples. Here are three practical tips to help couples manage and invest money together, even if they’re not legally bound to do so.

How would you like to get started?

Your first step toward a smarter investing future starts here.

Create a Betterment account

Go ahead and join the smart, modern way to invest.

See what we can do for you

Tell us a bit about yourself, and we'll show you the benefits of investing with us.

Get a free investing checkup

Help us get a sense of your investing approach and see how you could improve.

Transfer a 401(k) or an IRA

Move an existing retirement account into a Betterment IRA.

Download the mobile app

Enjoy the Betterment experience anywhere on the go.

<title>Close</title>

Search our site

For more information and disclosures about the Betterment Resource Center, click here. | See our contributors.