Freelancers will need to be more intentional in their retirement planning.
Do you work "on demand"?
If yes, the you are not alone.
And freelancers can make good money.
They can often charge more for their services than those who work for a wage.
More and more people are entering the freelancing or “on demand” field.
In fact, about 43 percent of the individuals will hold these jobs by 2021.
According to a recent The New York Post article titled “How to save for retirement if you work in the gig economy,” about 27 percent of those in this type of work have nothing saved for retirement.
About 70 percent of those working full-time believe they will not be able to maintain their lifestyle in retirement.
In fact, roughly 20 percent believe they will continue to work when they have reached retirement age.
For those who take on freelance "gigs" as side work to their day job, about 12 percent believe they will continue to gig even when they retire from their full-time jobs in order to make ends meet.
Interestingly, some 61 percent report that they are freelancing to help pay debts.
Because paying debts is the goal, they are not focusing on retirement.
Retirement planning may go overlooked because they have no employer sponsored account.
While many freelancers are very tech-savvy, they do not leverage available technology to their financial advantage.
Many are letting their money sit around without even earning compound interest.
If you freelance, make retirement planning a priority.
You should begin allocating money and investing for retirement.
Do not make excuses.
Do not wait.
I highly recommend working with an experienced financial advisor who knows how to make money work as hard as you do.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: New York Post (May 18, 2018) “How to save for retirement if you work in the gig economy”