Wednesday, January 15, 2014
The ranks of independent workers in the U.S. are growing but their retirement savings are not.
Data from TD Ameritrade Holding reveals that 28% of the nation’s entrepreneurs, freelancers, consultants and contractors aren’t saving anything at all. 40% of these self-employed workers are only saving occasionally.
Independent workers are estimated to make up 40% of the workforce by 2020. Even though America’s retirement system isn’t really designed for freelancers, they can still take responsibility and find ways to up their retirement savings. Those with big profit margins at the end of the month can use a Simplified Employee Pension IRA. Those with an erratic cash flow should consider setting up automatic withdrawals with their financial institution to fund their retirement account.
See Chris Taylor, U.S. Faces Retirement Time Bomb as Freelancers’ Ranks Swell, Daily Finance, Jan. 13, 2014.
Special thanks to Daniel B. Kelly (Associate Professor of Law, University of Notre Dame) for bringing this article to my attention.