Millennials worried about financial risk in gig economy: survey

For millennials, working gig jobs can provide flexibility and work-life balance, but the downside is a higher financial risk due to income volatility and lack of benefits, says a survey.

The survey by TD Insurance found that 73% of millennials have had or anticipate having some kind of gig job. However, 87% of those surveyed were concerned about the lack of health and dental benefits. They were also concerned about lack of job security, income volatility, no paid vacation time and no pension in the gig economy.

“Gig jobs may not offer the protections and benefits that full-time employment does, and because of this gig workers may assume higher levels of financial risk,” said Mark Hardy, AVP, direct life and health at TD Insurance, in a release.

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Having an unpredictable monthly income causes financial challenges, stress and lack of confidence in one’s financial future, said TD in its 2017 report Pervasive and Profound: The Impact of Income Volatility on Canadians. The report also found millennials, particularly women and those aged 18-24, are more likely to experience income volatility.

TD offers the following tips for those with gig jobs:

Start developing your financial literacy skills, including budgeting, saving and investing.
Start building your emergency fund with enough money to cover rent and major expenses for a few months.
Contribute what you can to retirement savings.

The full TD income volatility report can be read here.

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