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"Gig economy" becomes important source of income.

NEWARK, N.J: The "gig economy" has become an important source of income for three generations of Americans: Millennials, Gen Xers and Baby Boomers.

However, the financial wellness and retirement preparedness of these gig workers are far from assured--particularly for Gen Xers, according to a new research paper from Prudential Financial, Inc. (NYSE: PRU).

It includes everyone from rideshare drivers to freelance graphic designers. Prudential's new paper, "Gig Economy Impact by Generation," builds on findings from Prudential's prior deep dive into the gig economy by examining how and why three different generations of workers--Millennials (ages 18-35), Gen Xers (ages 36-55), and Baby Boomers (ages 56+)--exclusively take on freelance work. Prudential's researchers found that workers in these generations use gig work, in many cases, very differently.

Gen X gig workers were also likely to live in a single, relatively low-income household. They were typically mid-career, and doing mostly nonprofessional work. Millennial gig workers, for example, were found to proactively choose to do gig work, and view gig work as providing the flexibility and freedom to pursue their long-term aspirations. In contrast, Gen X gig workers and Boomers tended to start gig work due to circumstances beyond their control.

Gen X gig workers earn less than Boomers per year on average ($36,300 compared to $43,600) even though the average Gen Xer works more hours. "Gen X gig workers seem to face the most financial wellness challenges, but do not have as much time to shift their career paths and improve their financial lives," said Jamie Kalamarides, president of Prudential Group Insurance. "These findings are a call to action for advisors, employers and policymakers, who collectively have the ability to help gig workers set up retirement savings plans, acquire adequate insurance coverage, and develop budgets."

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Jul 13, 2018
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