Workers aged 55 and over are increasingly opting for the flexibility of working in the gig economy as they transition into retirement, according to research.
Analysing a survey by YouGov of over 4,200 adults, Zurich UK found that 36% of gig workers aged 55 and over chose this type of work to help them ease into retirement.
The same percentage cited flexibility and being able to choose the work they take on as the main attraction.
In fact, many plan to continue this style of work beyond state pension age, with more than 10% of all gig workers expecting to keep working up to the age of 75.
However, the insecure nature of gig work means that it comes with its drawbacks.
The main disadvantage, according to 44% of survey respondents, was a lack of workplace benefits such as income protection, holiday and sick pay.
Meanwhile, 34% said their biggest problem with gig work was not knowing where their next paycheque would come from, and 27% said it was not having a workplace pension.
Data from the Office of National Statistics (ONS) has revealed that 45% of self-employed workers aged between 35 and 55 have no private pension savings.
Over the years, the number of self-employed workers has soared to 4.8 million as the ‘gig economy’ becomes more and more popular.
Despite this, pension saving among the self-employed is rapidly decreasing, from 40% in 2008 to just 25% in 2020.
Coronavirus plays a part
The amount being contributed is also set to go down, with 11% of self-employed workers no longer contributing and total contribution sizes going down by 30%.
This is a result of the financial strain many are suffering due to a lack of work during lockdown as well as uncertainty for the future.
Chris Atkinson, head of direct at Zurich UK, said:
“Gig work is clearly a popular choice for near-retirees, allowing them to keep a form of money coming in without the traditional 9 to 5.
“However, as the world of work continues to change at a rapid rate, it shouldn’t come at the expense of financial protection.”
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