Personal finance expert Dan Roccato looks at some of the key contributors to Americans’ 401(k) balances plummeting 23% by 2022 in ‘Cavuto: Coast to Coast.’
Rising prices are affecting Americans’ budgets and market volatility is affecting their portfolios, leading many to reassess their retirement plans.
Most now plan to stay in the workforce longer than they originally planned or have given up on leaving it altogether. But with the added threat of more layoffs, older Americans are increasingly looking for temporary jobs to make ends meet, according to new data from AARP.
New data from AARP shows gig work is on the rise among older Americans. (iStock/iStock)
“With inflation and cost of living weighing heavily on people’s minds, many older adults are choosing to delay retirement,” says Carly Roszkowski, AARP’s vice president of financial resiliency programming. A recent survey by the organization shows that of the adults who are still working, more than Half expect to work, retire, or never retire.
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The latest organizing study of workers aged 40 and over found that more than a quarter (27%) are now self-employed or contract workers. Of those, 89% said their main motivation for taking up freelance work was to earn extra money. But almost as many, 87%, said flexible working hours were another important reason for their decision.
According to AARP, freelance and gig work is on the rise among older Americans. (iStock/iStock)
“For those who have retired during the pandemic and have returned or are considering returning to the workforce, temporary or freelance jobs are often attractive because they give people the opportunity to set their own hours and be their own boss.” Roszkowski explained.
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Contract work is also considered a backup plan in a shaky job market. In the same survey, older workers expressed concern about job security. Thirty percent of those surveyed said they believe they are likely to lose their job within a year, primarily due to a weak economy.
“The world of work has changed with the pandemic,” Roszkowski said. fox business. “Many older workers have been laid off or had to quit their jobs to care for family members, and when they return they want more work-life balance.”
Recent AARP data shows that the majority of American workers have delayed their retirement plans or say they will never retire. (iStock/iStock)
That makes commissioned work an attractive option.
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“While self-employment and self-employment gives older workers the opportunity to earn extra money, it’s also a way to make ends meet while having flexibility to care for parents, partner or children.” added Roszkowski.