As it turns out, self-employed hustlers—on average—plan on hustling a bit longer than the average worker.
New research from the Aegon Center for Longevity and Retirement found that more than half of self-employed Americans plan to work past age 70. What’s more, 9 percent of independent workers don’t ever plan to stop working.
While the motivations for each worker will vary, when the reason is not “for the love of the game,” the Aegon Center suggests that a main factor is the fact that retirement savings is simply not a priority for freelancers.
“The self-employed face unique challenges in terms of saving and planning for retirement, such as irregular incomes and a lack of access to employer-sponsored retirement benefits,” said Catherine Collinson, executive director of the Aegon Center. “For the self-employed, preparing for retirement requires a long-term, do-it-yourself approach which many are not undertaking.”
Being your own boss means maintaining a more independent and flexible lifestyle, but it also necessitates extreme responsibility when it comes to running the operations of your freelance business (invoicing, expense-tracking and so on) and managing your own personal finances, especially when it comes to retirement savings.
And, as Morningstar’s head of retirement research recently told CNBC, “Freelancers need to be smarter savers than the average American.” No pressure!
Looking for some simple ways to get started? To help make saving a habit, sign up for Acorns (one of our favorite Silicon Beach startups here at AND CO). Acorns will auto-save small amounts of money based on daily transactions and invest them on your behalf.
If you’re getting more serious about savings, “The Bogleheads’ Guide to Investing” is a straight-shooting guide for everyday investors, written by the founder of Vanguard. It will teach you the fundamentals of investing and importance of concepts like compounding interest.
What are some of your challenges and best practices when it comes to retirement savings? Tell us by sending us a tweet (@andco) or commenting below.