Holding nontraditional jobs after age 62 can build retirement security, study finds

Holding nontraditional jobs after age 62 can build retirement security, study finds
The Center for Retirement Research finds value in such jobs even if workers receive no benefits
NOV 11, 2020

Workers who are underprepared financially for retirement and hold jobs without health or retirement benefits after age 62 are able to close much of the gap in their retirement security by the time they're 67 or 68, according to a study by the Center for Retirement Research at Boston College.

The study, which looks at the use of nontraditional work as a means to extend one’s career, also found no evidence that those who approach retirement relatively underprepared are more likely to switch from traditional to nontraditional work late in their careers.

“The novel finding is that even jobs that do not offer health and retirement benefits can help substantially in closing the retirement security gap,” the study concluded. “Workers who do not feel capable of maintaining their career job, or who desire more flexibility and autonomy, can take heart that even a nontraditional job can bring them closer to their retirement goals.”

Most definitions of nontraditional jobs — which often are described as gig economy jobs, on-call work, temporary positions, part-time jobs, or self-employment — focus on the worker’s relationship to the employer, the Center for Retirement Research noted.

Instead, the Center said, it defined nontraditional jobs simply as those with neither employer-provided health insurance nor a retirement savings plan.

Latest News

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

Could 401(k) plan participants gain from guided personalization?
Could 401(k) plan participants gain from guided personalization?

Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.