October 11, 2018 | Article
A recent study showed that more than one in three U.S. workers are freelancers who participate in what is known as the gig economy. That number is only expected to grow. It is predicted to increase to 40% by 2020.1 In this survey, freelancers were separated into two groups:
- Full-Time Giggers – Those who solely rely on the gig economy for their income, and
- Side Hustlers – those who rely on a full-time job and gigs to supplement their income
It’s important to help these types of clients understand both the benefits and downfalls of the gig economy, and as well as what it means to rely on these “gigs” for retirement. The same study showed that a whopping 81% of those surveyed said they couldn’t afford to prioritize saving for retirement.1 It only further emphasizes the importance for the need to help those clients – especially full-time giggers – create a plan that will allow for them to have a comfortable retirement.
Lower earnings are one stumbling block to saving enough for retirement, and the lack of an employer-sponsored retirement plan is another. This allows for you, as a financial advisor, to step in and help these giggers explore options to achieve their retirement savings goals, such as a SEP-IRA, a Simple IRA and/or an Individual 401(k). It’s a great opportunity to build a relationship while helping them create a more secure financial future for themselves.
What can you do to build a financial plan for the increasing number of investors who participate in the gig economy and ultimately help them save for a better retirement?
RoboWholesaler is a technology that was created to help financial advisors looking for ways to save time and enhance their productivity. With their time spent more efficiently, they’re able to focus on developing the interpersonal component of their client relationships and grow their businesses. The RoboWholesaler app is now available for free in the App Store and Google Play. It offers you a fast, easy way to review fund performance rankings, and get up-to-date fund fact sheets for top-performing funds and at-a-glance summaries of key fund information.
1 “Betterment’s 2018 Report: Gig Economy and the Future of Retirement.”