Rising prices are taking a bite out of Americans' budgets and market volatility is hammering their portfolios, leading many to reassess their plans for retirement.
A majority of the workforce are planning to stay in the workforce longer than originally planned or have abandoned the idea of leaving it altogether. Older Americans are increasingly looking to gig work to make ends meet, with the added threat of further layoffs, according to new data from AARP.
Carly Roszkowski, vice president of financial resilience programming at the AARP, said with inflation and the cost of living weighing on people's minds that many older adults are choosing to delay retirement. According to a recent survey by the organization, more than half of adults who are still working will expect to work in retirement or never retire.
More than a quarter of the workers age 40 and older are doing freelance or gig work, according to the latest study by the organization. Of those, 89% said their primary motivation for taking on independent work was to make extra money. Nearly as many, 87%, said flexible work hours were a major factor in their decision.
For those who retired during the pandemic and are considering returning to the workforce, gig or freelance jobs are often appealing because they give people the opportunity to set their own hours and be their own boss, according to Roszkowski.
Gig work is seen as a backup plan in an unstable labor market. In the same survey, older workers expressed concerns about job security. Thirty percent of respondents said they think it is possible that they could lose their job within a year because of a weak economy.
Roszkowski told FOX Business that the world of work changed with the Pandemic. Many older workers were laid off or had to leave their jobs to take care of their family members, and as they return they want more work-life balance. While gig and freelance work allows older workers to earn extra money, it is also a way to make ends meet while having the flexibility to care for their parents, a partner or children, according to Roszkowski.