How will evolving employment models impact retirement savings: The case of Singapore
Freedom, flexibility, being your own boss—the proposition of the gig economy certainly caters to these stereotypical desires of millennials, as well as enabling individuals to supplement their income.
Technology has led to the rise of the gig economy, with the likes of Foodpanda, Grab, and Airbnb among others ostensibly providing a win-win situation for both service providers and consumers.
For individuals, the gig economy enables easy access to paid work, freedom to schedule working hours, and helps avoid the misery of working for a horrible boss.
For businesses, the ability to engage contingent workers on demand allows them to avoid the risk of being overstaffed, as well as the responsibility and costs of providing employee benefits.
Specifically, as individuals in the gig workforce are considered self-employed, they typically do not receive employer-paid pension contributions and thus face having insufficient funds on retirement. In addition, the gig workforce typically does not receive health benefits such as medical insurance, commonly provided by “traditional” employers.
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