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New PensionBee Survey Reveals Growing Retirement Risk In The Gig Economy
The findings underscore a stark gap between these workers and employees with access to employer-sponsored plans, at a time when gig work is on track to soon make up the majority of the U.S. workforce.
48% of self-employed Americans save for retirement, but more than half of that group do so irregularly, only putting away money when extra cash is available. Among the 52% not saving at all, 71% say they cannot afford it. Other reasons cited include retirement “not being a financial priority” (12%) and “not thinking about it yet” (12%).
“It’s common to hear people say, ‘I won’t ever retire,’ and that’s everyone’s choice. But having enough saved for retirement ensures that it truly is a choice and not a decision made out of necessity,” said Romi Savova, CEO of PensionBee.
Nearly one in four (24%) of self-employed Americans plan to never retire. That figure jumps to 31% among those not saving and falls to 12% among consistent savers, suggesting financial necessity, not personal choice, drives this decision.
Economic pressures have intensified these challenges. The recent cost of living crisis has pushed millions into "survival mode", worsening a difficult environment for saving amid rising costs and stagnant incomes. 77% of respondents cite personal living expenses as their top monthly expense, followed by personal spending (45%) and credit card debt payments (40%). Healthcare costs (31%) and emergency savings (29%) also featured prominently.
Self-employed Americans are more likely to face inconsistent income, and unlike traditional employees, lack access to employer-sponsored retirement plans, automatic enrollment, and employer matching contributions that typically boost retirement readiness. To offset lower savings, gig workers are more likely to claim Social Security early, potentially reducing lifetime retirement income.
