- April 27, 2017
- Posted by: matt
- Category: Blog
In today’s America, if you want to be a freelancer or gig economy worker, you need to make a basic trade-off. Â You get freedom, independence, and (hopefully) more money in exchange for zero benefits and lots of risk in terms of paying for health care and retirement. Â Investing for retirement is particularly challenging, as daily pressures often trump far-sighted financial planning. Â Moreover, affordable retirement savings options aren’t widely available. A new Small Business Majority poll took a look at these issues and asked free lancers about their retirement plans. Â The poll surveyed freelancers from around the US, and found a paradox. Â This surveyed group reported that they were thriving, with 53% reporting that they were “doing well.” Â Meanwhile, 40% of respondents had no retirement plan at all. Â Surveyed freelancers pointed to cash flow as a major impediment; they lacked needed savings to plow into IRAs and other existing retirement vehicles. Â They expressed strong support for more flexible and portable retirement savings plans that allow for easier movement between freelancing and full-time employment, and which provide more automatic procedures for enrollment and investment. Â Â These desires don’t seem like a big lift as such retirement plan features are already commonplace for full-time employees. It’s time to offer similar flexibility and savings options for the independent workforce.