LGGNF - Part 6 of Legal & General’s U.S. Gig Economy Study finds 77% of gig workers would rely on personal savings to fund retirement
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- 67% say not having access to retirement plans & otherbenefits is a key drawback to gig work
- 53% say gigwork has a negative impact on their access to retirement and savingsplans
- 45% of gig workers don’t expect to retirebefore 65; 30% never expect to retire
- 29% feel gig workhas negatively affected their ability to save in case of an emergency
A sixthsegment of a broad new study sponsored by Legal & GeneralGroup ( LGEN , LGNNY ), U.S.Gig Economy, Part 6: Gig Workers come up short on their futurefinancial and retirement planning , was released today. Itfollows a SpecialReport for International Women’s Day, U.S.Gig Economy Special Report: Tasked With Both Childcare and Earning,Women Fall Behind Their Male Counterparts , which lookedinto the gender pay gap, lowered retirement expectations, and otherinequities experienced by female gig workers. This latest report looksinto the financial challenges people working in the U.S. Gig Economyface as they contemplate a post-retirement life.
This sixth report in the data-richstudy explores the challenges many gig workers face, from beingunable to cover an unexpected $1,000 expense to lacking the ability toplan for retirement. The study found that more than half (53 percent)of the freelancers surveyed thought that gig work negatively impactedtheir access to savings and retirement plans, while 29 percent feltthat choosing to work this way negatively affected their ability tosave.
Though theyhave higher levels of financial literacy than the average American,independent workers find that retirement planning poses a particularlydifficult challenge, according to Legal & General’s U.S. GigEconomy research. While the survey elicited a complex array ofresponses to a question about which financial security benefits theyhold, more than three-quarters (77 percent) of those surveyed saidtheir own personal savings will provide the largest contribution totheir retirement income—while 30 percent of gig workers never expectto retire at all.
“As a company concerned with the financial aswell as physical health of millions of our own customers, whileputting in place initiatives that improve the lives of a broader swathof the population, the situation with American freelance workers is acall to action for the financial services industry. By harnessingfinancial technology, we should be able to do a better job ofdelivering a user-friendly suite of products and services that make iteasy for gig workers to put a retirement plan in place. The tools andintelligence are there—this is more a problem of communication thaninnovation.”
Sir Nigel Wilson, Chief Executive, Legal &General Group
Gig workers haveto double as their own CFO
Legal & General’s study looks at themultifaceted societal factors leading to gig workers’ long-termfinancial insecurity, including the added stress of managing their ownlong-term financial matters far more conscientiously thantraditionally employed W2 workers do.
“Our research points to some key differencesbetween gig workers in the U.S. and those in the UK, notably thedifferent mindset the two groups have toward saving. Parsing the issuefor U.S. freelancers has allowed a view into some potential solutionsto freelancers’ financial anxiety, particularly around unmetinsurance and retirement needs. We hope some of the ideas presented inthis report will lead to innovation that can create better financialhabits and, in the end, improved long-term financial security for gigworkers.”
John Godfrey, Director of Levelling-Up, Legal & GeneralGroup
Futuresegments of this research will look in depth at the pandemic falloutfor gig workers; and what it would take to get gig workers to go backto the traditional workplace. To receive a pdf of any of thesereports, please email Meir Kahtan/MKPR at mkahtan@rcn.com.
Notes to Editors
The information contained in this press release isintended solely for journalists and should not be relied upon byprivate investors or any other persons to make financialdecisions
Aboutthe Study
Legal &General undertook proprietary research into the attitudes andchanges U.S. gig workers are experiencing in relation to their worksituations and financial outlook. The U.S. Gig Economy researchwas compiled using original survey data from 1044 U.S.-based workersaged 18 to 60 who are neither students nor retired, and who earn atleast 60% of their income from gig work. The data was collected viaonline survey fielded to individuals sample sourced from YouGov’s USpanel. The Legal & General-designed survey was scripted and hostedon Gryphon, YouGov’s proprietary survey scripting platform, and thefield work took place between August 19 and 31, 2022. Keydemographics such as age, gender and region were allowed to fall outnaturally. 20 questions were designed to understand facts aboutearnings, drivers of and barriers to gig working, financial productownership & financial capacity when coming across adversesituations, and future expectations of being involved in the gigeconomy. Verbatim comments were captured by Legal & General inresearch carried out in June 2022.
About Legal & GeneralGroup
Established in 1836, Legal & General is one ofthe UK's leading financial services groups and a major globalinvestor, with over £1.2 trillion ($1.4 trillion) in total assetsunder management* of which a third is international. We also providepowerful asset origination capabilities. Together, these underpin ourleading retirement and protection solutions: we are a leadinginternational player in pension risk transfer, in UK and US lifeinsurance, and in UK workplace pensions and retirement income. Throughinclusive capitalism, we aim to build a better society by investing inlong-term assets that benefit everyone.
*as of December 31,2021
The information contained in this press release is intendedsolely for journalists and should not be relied upon by privateinvestors or any other persons to make financialdecisions.
Contact Details
Meir Kahtan
+1917-864-0800
CompanyWebsite
https://www.legalandgeneralgroup.com/
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