The rising gig economy certainly comes with benefits such as job satisfaction which a regular desk job may not offer. However, the gig-workers are finding it harder to save compared to full-time employees, finds a new study by Manulife.
Singaporeans, according to the Manulife Investor Sentiment Index, expect to need an average of $1 million in savings to retire – with close to 40% of the 500 respondents, comprising both gig workers and regular employees, indicating a savings gap of over $0.5 million.
The gig workers surveyed have a much broader average savings gap of $893,000 compared to their regular counterparts ($576,000). Nevertheless, Singaporeans are generally positive about the prospects that gig economy offers with one in three surveyed being engaged in a gig economy job and almost half (49%) of those currently not in one having indicated interest to be part of the gig workforce. Sixty-eight percent feel that freelancing jobs would give them the prospect to be business owners, apparently due to the flexibility that the gig business model offers.
61% of these gig workers raised concerns about the uneven wage and the lack of protections, specifically in the areas of retirement (74), medical (71%) and income (71%). Further, 65% of respondents working gig jobs indicated the need to save more, as income is less certain.
“We recognize the impact the gig economy has on employment and retirement planning, and remain committed to developing solutions that support our customers every step of the way, regardless of their vocation,” said Kwek-Perroy Li Choo, chief customer officer and chief transformation officer of Manulife Singapore.