The “gig economy”—which includes everyone from rideshare drivers to freelance graphic designers—has become an important source of income for three generations of Americans: Millennials, Gen Xers and Baby Boomers. However, the financial wellness and retirement preparedness of these gig workers are far from assured—particularly for Gen Xers, according to a new research paper from Prudential Financial, Inc. (NYSE: PRU).
Prudential’s new paper, “Gig Economy Impact by Generation,” builds on findings from Prudential’s prior deep dive into the gig economy by examining how and why three different generations of workers—Millennials (ages 18-35), Gen Xers (ages 36-55), and Baby Boomers (ages 56+)—exclusively take on freelance work. Prudential’s researchers found that workers in these generations use gig work, in many cases, very differently.
Millennial gig workers, for example, were found to proactively choose to do gig work, and view gig work as providing the flexibility and freedom to pursue their long-term aspirations. In contrast, Gen X gig workers and Boomers tended to start gig work due to circumstances beyond their control.
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