Using the Gig Economy to Fund Your Retirement
78 percent of Americans are extremely or somewhat concerned about having too little saved for retirement, and 66 percent are fairly certain they will outlive their savings. If that were to happen to you, what would you do?
Do you keep working for the same company longer, or do you figure out a way to fund your retirement differently? Many seniors are turning to what’s called the gig economy.
The gig economy is simply working in a freelance fashion and using technology to find the work.
There’s no doubt that technology has changed the world. If you’re at retirement age now, you’re living in a world that looks completely different to the one that existed when you entered the workforce.
36 percent of Americans today work in the new gig economy, and it could be an excellent answer to the problem of having to work through retirement. Seniors in the gig economy are earning 30 percent of their income from this type of work.
People aged 53 and older make up 35 percent of those doing independent or gig work. 13 percent of Airbnb’s hosts are over 60 and are their fastest-growing demographic. And 24 percent of Uber drivers are over 50.
There are also sites like Upwork, where you can find all kinds of work. Gigs are posted every day, asking for everything from web design to writers, help with marketing and sales, or even accounting. If you have years of experience in a certain field, it’s possible to land work through these services.
Another interesting development in the space is for contractors. Lots of older men find it difficult to retire when they have been working construction their whole lives. Efynch launched in Washington DC and plans to operate in ten new cities by the spring. They already provide a number of services in both Baltimore and Northern Virginia. Similar to Upwork, it targets people with construction and maintenance experience. Even having a truck could be a commodity that could make you extra money.
Since a study found that 21 percent of us have nothing at all saved, it’s a smart move to look for other ways of generating cash flow, especially into retirement. Work smarter, and the dividends will pay off. Getting into the gig economy sooner rather than later will allow you time to get used to the flexible hours and working either from home or a shared workspace.
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