Outside of a significant dip during the Covid pandemic, average life expectancy has consistently risen in the United States, from 47.2 years old in 1918 to 77.5 years in 2022, according to the U.
S. Department of Health & Human Services . Consequently, while the age of retirement has barely moved since Social Security was established in 1935, the time people spend in retirement continues to increase.
The latest Gallup numbers show most Americans are retired for between 13 and 21 years . The longer you spend in retirement, obviously, the more money you’ll need. 58% of retirees say Social Security is a major source of income.
Plus, with prices rising faster than income levels, AARP reports more than two-thirds of adults over 50 worry about their post-retirement finances . As their golden years approach, only 40 percent of Gen X workers believe they’ll be able to save enough to retire comfortably. And one-third of retirees in the U.
S. may take on part time or temporary jobs to make ends meet. 20% already have.
And there are no more Walmart greeters . Generational Trends in Side Hustles While you may think millennials and Generation Z have cornered the market on side hustles, they’re far from the only ones. Granted, more than half of the younger generations do take on side jobs and gig assignments, to the tune of around $1200 a month in supplemental income.
But the number of independent contractors in the U.S. rises every year .
In 2023, it’s estimated 64 million people were starting or operating their own freelancing businesses, many of them Gen X and baby boomers. While the younger generations embrace the ease of working flexible side hustle schedules around their full-time work, retirees see it as a way to still enjoy their golden years without pinching pennies . Spend the morning at the golf course, work a few hours in the afternoon and then relax with your significant other in the evening.
Not to mention, the ability to disappear for days or weeks if they want to travel. Plus, the life and work experience of boomers and Gen X provide a valuable and often well-compensated asset to companies who may struggle with some of the younger generations less than stellar work ethic, attitude and reliability. It’s a win-win.
“Temporary employment can serve as a sustainable and long-term source of extra income,” says Novo Constare, CEO and Co-founder of Indeed Flex . “Everyone has their own reasons for choosing to temp, however seniors will benefit from the flexibility that temping offers and the freedom to tailor their work schedule around their lifestyle. The face of the temporary worker continues to evolve as a more diverse mix of people [take on] temporary work.
” The Impact of Inflation on Retirees’ Savings Unfortunately, a mixture of inflation, struggling economy, and a lack of savings means freelancing just isn’t enough for some former retirees. Remember, nearly 60% rely heavily on Social Security, something the system was never designed to accomodate. Indeed Flex reports a 70% jump in their active user base of members over the age 62 in May.
As much as seniors may plan for retirement, unexpected expenses before and after leaving work can drain their 401K and other savings accounts. Even pensions can be lower than expected for employees who retire too early. Planning for retirement isn’t just about ensuring there’s enough money for day-to-day expenses.
Experts say prospective retirees should aim for a retirement income equal to at least 70% of their pre-retirement income . If Social Security benefits, your 401(k), or pensions don’t cover that, it may be time to consider a side hustle or staying in your career longer to save more or build a heftier pension. While the latter may cut into the time retirees expect to enjoy freedom from the daily 9 to 5, gig work can be unstable and doesn’t guarantee a steady income.
The Side Hustle Solution Having to “un-retire” to work a side hustle isn’t the best-case scenario, but there’s at least no commitment and, in many instances, no manager or boss to worry about. You have some freedom, and as a reelancer, you can always increase your production if needed to meet daily needs or combat the effects of inflation. Ideally, you can find a side hustle that aligns with your experience, passion, personality and skills.
It might take a little creativity, but checking out sites like Fiverr, TaskRabbit, FlexJobs, GigSmart and UpWork is a great place to start. This article was produced by Media Decision and syndicated by Wealth of Geeks ..
