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Part 6 of Legal & General’s U.S. Gig Economy Study finds 77% of gig workers would rely on personal savings to fund retirement

  • 67% say not having access to retirement plans & other benefits is a key drawback to gig work
  • 53% say gig work has a negative impact on their access to retirement and savings plans
  • 45% of gig workers don’t expect to retire before 65; 30% never expect to retire
  • 29% feel gig work has negatively affected their ability to save in case of an emergency

A sixth segment of a broad new study sponsored by Legal & General Group (LGEN, LGNNY), U.S. Gig Economy, Part 6: Gig Workers come up short on their future financial and retirement planning, was released today. It follows a Special Report for International Women’s Day, U.S. Gig Economy Special Report: Tasked With Both Childcare and Earning, Women Fall Behind Their Male Counterparts, which looked into the gender pay gap, lowered retirement expectations, and other inequities experienced by female gig workers. This latest report looks into the financial challenges people working in the U.S. Gig Economy face as they contemplate a post-retirement life.

This sixth report in the data-rich study explores the challenges many gig workers face, from being unable to cover an unexpected $1,000 expense to lacking the ability to plan for retirement. The study found that more than half (53 percent) of the freelancers surveyed thought that gig work negatively impacted their access to savings and retirement plans, while 29 percent felt that choosing to work this way negatively affected their ability to save.

Though they have higher levels of financial literacy than the average American, independent workers find that retirement planning poses a particularly difficult challenge, according to Legal & General’s U.S. Gig Economy research. While the survey elicited a complex array of responses to a question about which financial security benefits they hold, more than three-quarters (77 percent) of those surveyed said their own personal savings will provide the largest contribution to their retirement income—while 30 percent of gig workers never expect to retire at all.

“As a company concerned with the financial as well as physical health of millions of our own customers, while putting in place initiatives that improve the lives of a broader swath of the population, the situation with American freelance workers is a call to action for the financial services industry. By harnessing financial technology, we should be able to do a better job of delivering a user-friendly suite of products and services that make it easy for gig workers to put a retirement plan in place. The tools and intelligence are there—this is more a problem of communication than innovation.”

Sir Nigel Wilson, Chief Executive, Legal & General Group

Gig workers have to double as their own CFO

Legal & General’s study looks at the multifaceted societal factors leading to gig workers’ long-term financial insecurity, including the added stress of managing their own long-term financial matters far more conscientiously than traditionally employed W2 workers do.

“Our research points to some key differences between gig workers in the U.S. and those in the UK, notably the different mindset the two groups have toward saving. Parsing the issue for U.S. freelancers has allowed a view into some potential solutions to freelancers’ financial anxiety, particularly around unmet insurance and retirement needs. We hope some of the ideas presented in this report will lead to innovation that can create better financial habits and, in the end, improved long-term financial security for gig workers.”

John Godfrey, Director of Levelling-Up, Legal & General Group

Future segments of this research will look in depth at the pandemic fallout for gig workers; and what it would take to get gig workers to go back to the traditional workplace. To receive a pdf of any of these reports, please email Meir Kahtan/MKPR at mkahtan@rcn.com.

Notes to Editors

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions

About the Study

Legal & General undertook proprietary research into the attitudes and changes U.S. gig workers are experiencing in relation to their work situations and financial outlook. The U.S. Gig Economy research was compiled using original survey data from 1044 U.S.-based workers aged 18 to 60 who are neither students nor retired, and who earn at least 60% of their income from gig work. The data was collected via online survey fielded to individuals sample sourced from YouGov’s US panel. The Legal & General-designed survey was scripted and hosted on Gryphon, YouGov’s proprietary survey scripting platform, and the field work took place between August 19 and 31, 2022. Key demographics such as age, gender and region were allowed to fall out naturally. 20 questions were designed to understand facts about earnings, drivers of and barriers to gig working, financial product ownership & financial capacity when coming across adverse situations, and future expectations of being involved in the gig economy. Verbatim comments were captured by Legal & General in research carried out in June 2022.

About Legal & General Group

Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion ($1.4 trillion) in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.

*as of December 31, 2021

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

Contact Details

Meir Kahtan

+1 917-864-0800

mkahtan@rcn.com

Company Website

https://www.legalandgeneralgroup.com/

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