How the Gig Economy Fails Senior Workers Facing Retirement

A research brief from the Boston College Center for Retirement Research found the gig economy is ill-serving older workers faced with retirement, reports Reverse Mortgage Daily . The analysts determined fewer older employees are in "traditional" jobs with benefits, and prolonged periods in such jobs can weaken the strength of their retirement. In terms of improving retirement security, only 26 percent of U.S. employees are directly benefiting from a nontraditional work environment. "Many retire early or have brief bouts of not working or nontraditional work and, worse, many have a weak attachment to the labor force or are in nontraditional jobs consistently," according to the brief. Employment patterns of older Americans can significantly impact their financial security, even if only engaged in nontraditional work for a short while. "Having only a brief period of nontraditional work decreases retirement income by 6 percent, but doing that work consistently decreases income by a full 26 percent," the brief notes. Moreover, most older workers who wind up in nontraditional jobs often frequently use such jobs, resulting in visibly lower retirement incomes at age 62, versus those consistently in more traditional positions.