Future retirees expect to work in retirement. Future retirees should, and do, expect to work — but in a different way. More than a third of future retirees plan to have employment income, and that may very well come from the gig economy.
Flexible work arrangements are favorable for retirees, according to research firm Hearts & Wallets , which surveyed more than 5,000 households. About 10% of pre-retiree households are currently in the gig, or flexible, economy, and 11% of retiree households are in the gig economy. Future retirees expect employment to make up a quarter of their income — the other two common sources of retirement income include Social Security and retirement account withdrawals.
“A lot of the people who are retired are working,” said Laura Varas, chief executive officer and founder of Hearts & Wallets.
Retirees are slowly beginning to dip their toes into the gig economy, such as ride-sharing and dog-sitting — a 2016 paper by Harvard University economics professor Lawrence Katz and Princeton University economics professor Alan Krueger showed the rise in gig economy jobs for people between the ages of 55 and 74 years old were the sharpest compared with their younger cohorts , with about 24% […]