D.A. Davidson & Co. today announced survey results revealing that two in five retired Americans (41%) feel like they currently cannot support their ideal retirement. And while 92% of retired Americans say they do not have a side gig to supplement their retirement savings, 60% wish they did.
“The definition of—and classic timeline for—retirement is changing,” said Andrew Crowell, Financial Advisor and Vice Chairman of Wealth Management at D.A. Davidson. “While many retirees might picture never working again, a side gig in retirement can be a fun and meaningful way to stay engaged in the community while supporting a more ideal retirement overall.”
The case for the side gig
Working a little in retirement doesn’t have to be a pain—of those surveyed with a side gig, 93% say they enjoy their job. Additionally, more than half (55%) of those with a retirement side gig said that they took it on in order to participate in an activity that they find mentally or socially stimulating.
“Having commitments outside of the house is crucial in retirement—they can keep the mind sharp and energized,” Crowell said.
The next most common reasons for a retirement side gig were more financially motivated: 20% of respondents wanted to pay off existing debts, and 17% wanted to financially support their more ideal retirement lifestyle.
Common side gigs Crowell has seen among his clientele include working a part-time job, selling a craft that was created as a hobby, and freelance writing.
Thinking about the future
Further, for Americans aged 50 and older who have not yet retired, 63% have considered pursuing a side gig once they do.
“Throughout our careers and especially as we near retirement, it’s important to constantly evaluate what we want our retirement to look like, as this can—and probably will—change over time,” Crowell said. “Some may find it helpful to stick to a schedule or have an extrinsically motivated goal to work toward, both of which side gigs can support, while bringing in some additional income.”
Methodology
This survey was conducted online by Big Village. The survey was fielded on March 20-25 among a nationally representative sample of 1,008 U.S. adults 50 years of age and older.
About D.A. Davidson Companies
D.A. Davidson Companies is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions and municipalities nationwide. Founded in 1935 with corporate headquarters in Great Falls, Montana, and regional headquarters in Denver, Greater Los Angeles, New York, Omaha and Seattle, the company has approximately 1,600 employees and offices in 30 states.
Subsidiaries include: D.A. Davidson & Co., a full-service investment firm providing wealth management, investment banking, equity and fixed income capital markets services, and advice; Davidson Investment Advisors, a professional asset management firm; and D.A. Davidson Trust Company, a trust and wealth management company.