Creating a New Retirement System in the Gig Economy

As an increasing number of workers continue to join the gig economy, it is increasingly imperative for lawmakers and regulators to create a new retirement system that allows for freelancers and individuals working for multiple businesses to easily save for retirement. Although the American workforce is changing, the traditional retirement system does not yet present an option for the changing workforce. Gig workers are currently not entitled to enjoy a traditional employer-based retirement plan because such plan are only permitted to cover employees and not independent contractors.

The gig economy may not be able to reach its full potential without a private retirement system to address the needs of gig workers and ensure there are viable options available to allow workers to save for a secure retirement. And this is not a problem that appears likely to go away anytime soon. Intuit estimates that, while gig workers represent 34 percent of the current workforce, this number will grow to 43 percent by 2020.

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