The Reason Older Workers Are Embracing the Gig Economy

Flexibility and money. JL

Elaine Pofeldt reports in Forbes:

One-third of future retirees expect to earn one-quarter of their income by working, up 7 percentage points from 2016. And more older workers are looking at the gig economy as an option for keeping their income going. 12% of 2,000 female gig workers surveyed were ages 51-70. Their main reasons for freelancing were to earn money and stay active in retirement.
When many of us think of gig workers, we envision millennials. They have undoubtedly embraced the freelance economy, but they are increasingly working alongside Americans in midlife and beyond who are seeking creative ways to stay employed past the traditional retirement age.
Data from Hearts & Wallets, a source of retail investor data and insights, shows that one-third of future retirees expect to earn one-quarter of their income by working, up 7 percentage points from 2016. And more older workers are looking at the gig economy as an option for keeping their income going. The freelance payment platform Hyperwallet just found in new research that 12 percent of 2,000 female gig workers it surveyed were ages 51-70. Their main reasons for freelancing were to earn money and stay active in retirement. While that’s not a staggering percentage, it’s important to realize that women in this age range have not historically been well represented in entrepreneurship, when it comes to participation levels.
One reason for the percolating interest in gig work among older workers is that the barriers to entry are coming down, says Michael Ting, senior vice president at Hyperwallet. Many have found that digital platforms make it easier to tout the skills they have to offer than by using traditional routes, like word of mouth.
“The growth of online platforms is making it easier for people who might not have experience in finding freelance work to participate in the gig economy,” says Ting. “You’ve now got these tech platforms and marketplaces where you can take a more passive approach—list your profile and talk about what it is you are skilled at and they will connect you with people who will pay you for those services. That’s a very different paradigm. It lowers the barrier for anybody to be able to participate.”
There is also no cap on what people can earn, other than the time they have available. “There is unlimited ability for people to earn money in all of these different ways,” he says. I wonder if that could make gig work particularly appealing to older people who are frustrated by the age discrimination they often face when applying for traditional jobs. One advantage many older freelance workers have when they enter freelance platforms is expertise, notes Ting. “What they bring to the table is deep experience in what they do,” he says. When hiring traditional employees, firms often fear that a very seasoned worker’s salary requirements may be too high and shy away from those with decades of experience. However, I have noticed that when these same companies hire freelancers, they generally look for the most qualified person for the job. They don't want the headaches that come with managing a contractor who might mess up a project and don't mind paying a little more to find someone who is very well qualified.
For free agents who are newer to the work they are doing, freelance platforms provide a way to keep getting better at what they do, notes Ting. After a few projects, he says, “you understand what your strengths are.”
Another reason for the greater interest in gig work is changing attitudes towards the “idle capacity,” in our lives, Ting says. Ride sharing services, for instance, have encouraged many people to try to make more money from their daily commute—and that includes people of all generations. “These platforms make it easy for you to connect with someone who can benefit from your daily routine,” says Ting.
They can also make it easier to connect in general. One Uber driver I met recently told me he was a retiree who had lost his wife. He enjoyed chatting with customers while shuttling them around. He could have made new friends while volunteering, too, but given that he needed a little extra retirement income, too, his new gig work was a great fit. Based on what the trends are showing, it’s likely more people will be adopting a similar lens on work in the future.