Retirement Plans for Contingent Workers: Issues and Options
Journal of Pension Economics and Finance 2018: 1-13. December 2018.
13 Pages Posted: 1 Jun 2019
Date Written: September 2016
This paper examines retirement saving policy for independent – or contingent – workers, a growing segment of the workforce. Because few of these workers are covered by employer-sponsored retirement plans, they often do not benefit from payroll deduction, employer matching contributions, automatic enrollment, and other provisions that encourage retirement saving. Better use of fintech, judicious changes to tax policy, and expanded Automatic IRAs would help independent workers save for retirement. In addition, we propose the creation of retirement saving accounts that attach to the worker as a supplement to, and possible replacement for, the current system of employer-sponsored accounts.
Keywords: contingent workforce; employer-facilitated accounts; gig workers; independent workers; retirement saving
JEL Classification: J26; J32; J46
Suggested Citation: Suggested Citation