The issue of irregular or varied income is highlighted in a new report which highlights the challenges of the ‘gig economy’.
The rise of temporary or contracted employment means that an increasing share of workers do not receive a regular pay cheque and don’t benefit from wages when sick or on vacation.
The poll for BMO Wealth Management in the US shows that while many workers take on ‘gigs’ for additional income (55%), for some older workers these transient roles may be the only option.
Millennials are more likely to do gig work alongside their regular employment, perhaps to save money for retirement or a down payment for their first home.
Boomers face challenges in finding employment, with 34 percent reporting that gig work was the only way to make an income, while just 20 percent of millennials expressed the same.
Tania Slade, National Head of Wealth Planning, BMO Wealth Management (US) says taking on these flexible roles may be more convenient for some but it does require careful financial planning.
"There are obviously tremendous advantages for gig workers of all ages, from flexibility, personal growth and providing supplemental income, but giving up a steady paycheck and employer-based retirement plans for less consistent income requires additional time and planning in order to achieve financial health."
