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Gig Economy and Retirement


The gig economy is a new way of working but what does this mean for your retirement? Don’t sacrifice your future while chasing flexibility and freedom now – get a plan in place so you can enjoy the best of both worlds.

This article is published by Modoras Pty Ltd ABN 86 068 034 908

The Gig Economy and You: What Does It Mean For Your Retirement?

Gig Economy Retirement

There are changes afoot in the work environment. And we’re not talking about leadership styles, lunch room dramas, or how we’re going to keep millennials engaged…we’re talking about a change to the 9 – 5 way of working.

Introducing the gig economy.

There’s a growing number of Australians turning to non-traditional ways of earning money. You could say that the gig economy is the changing face of employment. The Association of Superannuation Funds of Australia (ASFA) says that self-employed workers make up 10% of the employment population – but with the gig economy, this is sure to rise.

But the advent of the gig economy raises an important issue to consider – what does it mean for your retirement? Embracing the gig economy means you’ll be primarily responsible for building your retirement nest egg. You’ll no longer enjoy the safety net of an employer’s superannuation contribution, and the comfortable retirement you had been planning, could be at risk.

What is the Gig Economy?

Gig economy is a new buzzword, but it has existed in different forms for many years. Right now, it seems to be at the forefront of many business and employment discussions.

The gig economy describes a way of working by taking short term contracts or freelancing. Work is often undertaken for different clients at the same time and can be done in a wide range of industries.

Some people participate as a side venture in conjunction with traditional employment, and for others it may be their main source of income and employment. This style of working covers a wide range of roles including freelance and contract roles, or individual jobs on online platforms like Airtasker or Uber.

No matter the type of role or industry, It’s fast becoming a more prevalent and acceptable way to work.

Why are People Choosing to Work this Way?

Some say that working for yourself is the holy grail. And the move to flexible work options has made it even easier to do this.

There are several reasons why people choose to work for themselves in these types of arrangements:

  • Flexibility – Working the days and hours that suit your life
  • Job satisfaction – Align your work with your personal values
  • Finances – Earning money while caring for children or using it as an additional earning strategy
  • Autonomy – Get the parameters of the job and get the job done – the way you want to

For many people, their motivation for working this way is similar to what we’re all striving for in retirement – living our lifestyle potential.

However, there has been a trade-off to these benefits. Self-employed workers typically have less superannuation than their employed counterparts. ASFA says that as many as 20% of self-employed people have no super and that the majority will find it difficult to build their super to comfortable levels by retirement.

It’s vital you don’t sacrifice your future while chasing freedom and flexibility now. And that’s why planning is key to making this employment option work for you now and at retirement.

Embracing the Gig Economy: What Does This Mean for Your Retirement?

Retirement planning will be more important than ever. There’s no fall back or safety net. But there’s also no reason why you can’t plan for a retirement you’ve always dreamed of.

The benefits of retirement planning can even help you feel more confident about the career decisions you’re making and enable you to focus on what’s important now.

How retirement planning helps you:

  • Peace of mind
  • Taxation benefits
  • It’s a way of seeing how all current and future goals tie in with one another
  • Take advantage of time
  • Achieve lifestyle potential during and after your working life
  • Retire sooner

Regardless of your work situation, it’s always important to consider retirement planning as early as possible. We can help you work out how much you’ll need, and the steps you need to take to get there.

For some business owners, planning for retirement could include the sale of their business but this may not be an option for sole traders. This is why planning for and contributing to super may need to be a key part of your strategy. Professional advice can assist you in making the most of your work life and retirement.

You can be your own boss, and still be the boss of your retirement. Let us help make your employment choices work for you now and into the future. Speak to a Modoras Executive Planner today. Call us on 1300 888 803 for a complimentary consultation.

IMPORTANT INFORMATION: This blog has been prepared by Modoras Pty. Ltd. ABN 86 068 034 908 an Australian Financial Services and Credit Licences (Number 233209). The information and opinions contained in this presentation is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individual's personal circumstances have been taken into consideration for the preparation of this material. Any individual making any investment or borrowing decisions should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to borrow funds or purchase, sell or hold any particular investment. Modoras Pty Ltd recommends that no financial product or financial service be acquired or disposed of, credit contract entered into or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog may change without notice. Modoras Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication.


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