54% of Freelancers Feel Pressured to Save for Retirement

Freelance based work, also known as gig work, has introduced a new way for people to earn money that allows them to avoid corporate jobs and all of their bureaucracy. In spite of the fact that this is the case, there are some downsides to working in the freelance space such as the lack of perks which include retirement savings accounts and pensions that they can get if they had gone for standard jobs with all things having been considered and taken into account.

With all of that having been said and now out of the way, it is important to note that the majority of freelancers, or 75% to be precise, feel like they can save an adequate sum to fund their retirements if they persist with their current gig work. 54% of them are definitely feeling a lot of pressure though, and that might be due to the uncertain nature of freelance work which can come with its fair share of dry spells as well as periods where work might feel overwhelming.

There has also been a marked shift with respect to what freelancers are saving up for after the pandemic. 74% have changed their saving behavior, with 42% saving up enough that they can take mental health days without having to take a financial hit.

37% are also trying to save up for life insurance because of the fact that this is the sort of thing that could potentially end up keeping their loved ones financially secure in the event of their untimely demise. Also, car purchasing and travel is less of a priority now than might have been the case otherwise, with only 27% saving up for the former and just 25% saving up for the latter.

As for why people prefer the freelancer lifestyle, a myriad of reasons came to the fore. 43% like being able to choose what projects they can work on, 41% enjoy being able to set their own hours, and 40% prefer not having to answer to anyone but rather acting as their own bosses.

There are some annoyances that freelancers have to deal with as well that some say come with the territory. 42% say that they have a hard time planning for vacations, since taking any time off will result in them losing out on the money they would have earned on top of the huge spending that this would entail. 40% also took issue with their clients sometimes not paying them in a timely fashion, and 38% also cited paying for health benefits out of their own pocket as a major inconvenience.

64% of freelancers are saying that they have cut back on any and all unnecessary spending as they have grown older. 25% use the savings to pay for the aforementioned health benefits, 25% also said that they use it to build a professional looking website, and 27% pay for a gym membership which is necessary given the sedentary nature of their jobs. On average, they expect to retire by 58 and they say that around $350,000 is the sweet spot that will make them retire in comfort without having to work again or take on any further freelance gigs.

H/T: Everlylife.

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by Zia Muhammad via Digital Information World