The gig economy is booming these days. But when we think about people husting with a second job, let's be real -- we tend to picture Gen Zers or millennials who need the extra cash to do things like cover their student loans or build emergency savings.
But it's really not just younger folks who are embracing the gig economy. A good 23% of older workers have found a side job for additional income to help protect their retirement investments, according to a recent Nationwide survey of Americans aged 60 to 65. And if you're on the cusp of retirement, you may want to consider a side gig, too -- whether you're worried about your investment portfolio or not.
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A world of good
It's certainly not an easy thing to take on a second job when you're older. After all, at that point, you may be looking to wind down your career -- not pile on with extra working hours. But if you're willing to embrace the idea of a second job, you may find that it actually does a lot of good for your finances.
For one thing, many people inevitably enter retirement lacking confidence in the amount of money they've saved. If you pick up a side job a year or two before your career wraps up, that second gig might be your ticket to maxing out your 401(k) or IRA at the last minute. And the more money you're able to sneak into your retirement plan, the better.
Just as importantly, a second job during the tail end of your career could set you up with a nice additional income stream during retirement. Many retirees are forced to seek out work once they realize their finances need a boost. But if you begin working a side job ahead of retirement, once that stage of life begins, you may be a pro at it. And at that point, you may be in a great position to supplement your income and enjoy retirement more fully.
Furthermore, a lot of people who are used to full-time work wind up bored and unhappy in retirement. If you take on a second job now, that's something you can carry into retirement and use to fill your days. You may even decide to ramp up your hours significantly to avoid feeling restless -- even if you end up in a better place financially than expected.
Give the gig economy a chance
The idea of becoming a gig worker may seem silly or undesirable to you at this stage of life. But before you write off the idea of a side job, give it a go. Try a few different gigs and see if anything clicks. You may find that you're able to earn a nice amount of money in a refreshing new way.
And remember, if you're unhappy and stressed in your main career and your side job ends up working out nicely, you could always try to transition that gig to more of a full-time role during your final years in the workforce. That way, you can end your stint in the labor force on a more positive note rather than from a place of feeling completely and utterly burned out.
