A survey of gig workers aged 55 or over has shown that 36% take on freelance 'gig' jobs as a way to ease themselves into retirement. These jobs allow them to choose their own hours, while still staying active in work and earning an income.
Zurich UK's report further found that 36% of all gig workers said flexibility and being able to choose what work they take on are the main attractions of this type of work. However, such freedoms can come at a cost.
A lack of workplace benefits such as holiday and sick pay was the main drawback for 44% of gig workers older than 54. Meanwhile, 34% felt it was not knowing where their next paycheque would come from and 27% pointed at not having access to a workplace pension as the biggest drawback.
The lack of these benefits can mean that freelancers will have to work for longer, with one in 10 of all gig workers saying that they won't expect to stop working until the age of 75 at least. Yet, it could also be not wanting to stop working that causes people to work 10 years longer than the State Pension age.
Whatever the reason for taking on gig work and postponing retirement, it's important to be pragmatic about it. Did you know, for instance, that freelancers can take out critical illness and income protection?
Those worried about retirement funds may want to get a personal pension or even just an additional savings pot, and there's also equity release to consider if you've got a larger hole to fill in your retirement savings (and are at least 55). Once you do decide to stop working, consider an annuity to fix your retirement income for the rest of your life.
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