With a rise in non-standard work (NSW) – such as independent contracting, freelancing, temporary, on-call, and “gig work”– research has focused on its implications for economic security while working. NSW tends to be more precarious than traditional employment and lacks employer-sponsored benefits and labor protections, contributing to greater economic insecurity for workers (Kalleberg 2011; Garin, Jackson, and Koustas 2022). The non-standard workforce includes both individuals who earn low wages (e.g., service sector) and those who are highly paid (e.g., professionals). Some groups (e.g., by gender or race/ethnicity) may be more likely to engage in NSW, exacerbating inequities (Katz and Krueger 2016; Abraham and Houseman 2019). Yet few studies focus on the retirement implications of NSW (Nutsubidze 2019).
This study examines differences in retirement income security between traditional and NSWs. In the U.S., retirement income security derives from Social Security benefits and private retirement savings, including employer-sponsored retirement benefits. Previous research suggests that between 40 and 60 percent of the U.S. population is insufficiently prepared for retirement, based on the annual amount of income needed to maintain one’s standard of living in retirement, or a target of 70 to 75 percent of pre-retirement annual income (Chen, Munnell, and Sanzenbacher 2018). Non-standard workers, who do not have access to employer-sponsored benefits, may have fewer opportunities to save for retirement than their counterparts in traditional jobs.
As more adults engage in NSW without employer-sponsored benefits, the U.S. may see a corresponding increase in economic insecurity at retirement among current and future generations of workers. Differences in retirement income security across worker categories would suggest that some future retirees may have greater economic needs. However, the relationship between NSW and economic security at older ages could be different. First, when NSW enables older adults to remain in the workforce beyond the retirement age, it can alleviate potential income shortfalls and hardship (Giandrea, Cahill, and Quinn 2008). Second, if traditional employees supplement their income with NSW, they could have more resources to draw on in retirement than their counterparts who have a single job.