Magazine

UpFront | Published in June 2017

Does Gigging Work?

An increase in the desire to stop work reflects people’s greater control of their ability to work

By PLANSPONSOR staff | June 2017

More households than ever (35%) in the past seven years “want to stop working/retire at a certain age,” according to analyses by Hearts & Wallets. After a several-year trend of the majority wanting to work as long as health permits, that group shrank to a minority (45%) this past year.
 
Hearts & Wallets speculates that the increase in the desire to stop work reflects people’s greater control of their ability to work, thanks to the “gig” economy.
 
While participation in an employer-sponsored retirement plan is one way to prepare to stop work, the analyses find that the portion of savings going into these plans continues to decline. The analyses find the average rate of savings was 39% in 2014 and has declined to 35% in 2016. The savings rate is not impacted as much by age, as the average household participating in an ESRP devotes about one-third of savings to the plan, a figure steady across life stages.

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