Millennials, Generation Zs and of course the global pandemic have (and still are) fundamentally changing the traditional concept of working a ‘nine to five’. We live in a gig economy; more people opt to freelance (flexible, task-based careers) instead of permanent employment. While this is a viable option for many people, what does it mean for retirement planning?
Gig economy workers are defined as anyone getting paid independently for their knowledge or services. This professional lifestyle also attracts individuals from older generations who want to embrace the benefits of a better work-life balance.
The pandemic has caused many individuals to take their services entirely online out of necessity. It could be argued it’s offered South Africans an opportunity to provide their services to a broader market. With the unemployment rate hitting the 30% mark over the last year, keeping businesses afloat through online activity is a blessing.
With independence comes responsibility
Independence brings a new type of responsibility: you no longer have the luxury of being supplied with work and being looked after through employment benefits such as a retirement annuity and/or medical aid scheme. You are responsible for acquiring your work to earn an income.
Month-to-month financial sustainability can centre around your ability to successfully develop your brand, and building – and maintaining – a sound reputation by continually producing excellent work for your clients. As a result of the responsibilities and circumstances, many gig workers have had to live in the present, putting their financial future on hold.
You oversee your financial retirement plans
Employers often help permanent employees with establishing financial security. The business may set up a retirement annuity fund, pension fund, provident fund, or umbrella fund investment that ensures a portion of employees’ salar
For the Full Article –
You can Find it Here: Planning for Retirement in a Gig Economy
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