The Impact of Irregular Income on Retirement Planning Strategy

Planning for retirement despite income volatility is possible. Shutterstock

How can individuals plan for retirement when they don’t know when they will see their next paycheck? Many conventional budgeting tips and savings goals don’t apply to them. Understanding whether earning an irregular income affects your future is vital. More importantly, you should know how to achieve financial stability before retirement.

Here are some things people with unconventional incomes should keep in mind when planning an effective retirement strategy.

What It Means to Have an Irregular Income

Thousands of nontraditional jobs exist. Entrepreneurs, seasonal workers, freelancers, contractors, salespeople, and servers are some of the most common. Whether they earn money from overtime, interest, bonuses, tips, or commission, they all deal with the same issue—the number on their paycheck constantly changes.