Feeling unprepared for retirement? Gig work in your senior years could be the solution. At least that’s a conclusion made by a 2020 report from the Center for Retirement Research at Boston College. The study analyzes income replacement rates in retirement for different categories of workers, including those who had large income shortfalls at age 62. Among that group, those who transitioned from traditional work to gig work at 62 were able to shrink their income gap by ages 67-68. Interestingly enough, the gig workers were able to cover more of their income shortfalls vs. those who stayed in their traditional jobs.
You could experience the same result, especially if your gig income allows you to delay claiming your Social Security and/or making withdrawals from your savings. Here’s a look at three ways you can manage those income streams to close up your retirement income shortfall by your late 60s.