More people are juggling side gigs these days, and it’s easy to see why. Driving for rideshares, picking up freelance projects, or piecing together contract work has become part of everyday life. But this shift is having more of an impact than just boosting today’s income; it’s also reshaping what the future of retirement could look like.
Fewer Traditional Retirement Plans
One of the biggest challenges with gig work is the lack of employer benefits. Traditional jobs often come with 401(k) plans or pensions, but gig workers are usually on their own. That makes it harder to save consistently.
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A report from Brookings found that fewer than half of gig drivers have any kind of retirement account — and most of those savings came from jobs they had before joining the gig economy.
Delayed Retirement for Many
Without steady contributions and employer matches, retirement savings often fall short. Many gig workers expect to retire later than traditional employees. According to RFI Global, the average gig worker now plans to retire around age 67, compared to about 64 for traditional workers. That’s three extra years of work — often not by choice but by necessity.
Flexibility Can Help Extend Work Life
On the positive side, gig work can be easier to continue into later years. Driving for a rideshare app, tutoring online, or freelancing gives you the ability to set your own schedule. This flexibility allows older adults to work part-time without the pressure of a full-time job.
MarketWatch recently reported that more than 11 million Americans over 65 are still working, many choosing gig or freelance jobs to stay active while earning extra income.
Self-Reliance Is Key
Since there’s no company pension or guaranteed match, gig workers need to take the lead on retirement planning. Options like Roth IRAs, SEP IRAs, or solo 401(k)s can help fill the gap, but you have to be disciplined about making contributions.
For many, the irregular income of gig work makes it even harder to stick with a plan. Still, creating your own system is better than relying solely on Social Security down the road.
A New Picture of Retirement
Gig work isn’t going away, and retirement will keep evolving because of it. For some, it means working longer than expected. For others, it offers a way to stay active and earn extra money on their own terms. The key is preparing now so you’re not caught off guard later.
Planning Ahead Pays Off
Retirement for gig workers looks different than it used to, but it doesn’t have to be out of reach. By building savings strategies early, exploring flexible account options, and planning for a longer work life, you can create more security for your future. Gig work may not provide the same safety nets as traditional jobs, but with a plan in place, you can still shape the retirement you want.
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The article 5 Ways the Rise of Gig Work Is Shaping Retirement first appeared on Cents + Purpose.