Older American Workers Worried About Jobs, Taking on Additional Gigs for ‘Extra Money’

A 'Now Hiring' sign at a Home Depot store in San Rafael, Calif., on Aug. 5, 2022. (Justin Sullivan/Getty Images)

Older U.S. employees are troubled about the security of their jobs, worried about getting laid off over the next year, and concerned they might not be able to find a similar job within a meaningful period of time, even as many are turning to gig work for extra income.

Many older workers were found to be worried about job security, with 44 percent admitting to having experienced workforce disruption in the past five years, an AARP survey released this month shows. In addition, 30 percent believe they are very likely to lose their job within a year. The top reason cited for anticipating a job loss is a weak economy.

Other factors include employers who do not wish to pay the desired salary, jobs being replaced by technology, discrimination due to age, skills becoming obsolete, and there being no longer a need for the type of job they do.

Among the general population (aged 40 and above), 16 percent are supplementing their income by taking on more than one job. Among those aged 40–49, this number was at 20 percent.

Twenty-five percent of respondents also admitted that they do not have the confidence to find a new, similar job within three months if they find themselves getting fired. Among respondents who are retired or looking for work, this stood at 49 percent.

Thirty-two percent of workers aged 40–49 were doing gig work compared to 27 percent among the general population. The top reason cited for working independently was “to make extra money,” with 89 percent agreeing with the reason.

Retirement Plans

The AARP survey also found that 60 percent of the general population had reevaluated their plan for retirement or post-work life during the pandemic. This number stood at 64 percent among the 40- to 49-year-old demographic.

Retirement savings plan was cited as the third important factor before accepting a job. Among 40- to 49-year-olds, saving for retirement was a major factor driving them to work, with 85 percent saying they wanted to work to become eligible for payment from a retirement plan.

A BlackRock study from July last year found that 37 percent of Americans felt unprepared or unsure about whether they are on track for retirement, with women reporting the highest lack of confidence.

Inflation was found to be the key factor for the confidence decline, with 87 percent of respondents saying that they were worried about how inflation would impact their retirement. Sixty-four percent are also concerned whether their nest egg would last their lifetime.

“As we experience new market headwinds that could impact the retirement security of millions of Americans, it’s a critical time for our industry to ensure people are planning for retirement with confidence and clarity,” said Anne Ackerley, head of retirement at BlackRock, according to a press release on July 19, 2022.

Inflation and Wages, Returning Back to Work From Retirement

Inflation has had a deeply negative impact on both current workers and retirees. A FinanceBuzz survey from December showed that only 37 percent of people felt that their salaries kept up with inflation, while 41 percent thought they were being underpaid.

The survey of 1,250 people also found that 15 percent quit their jobs because they were making less money compared to their coworkers.

A ResumeBuilder survey this month found that one in five retirees plan to potentially return back to work this year.

Among those who have such plans, 69 percent said their decision was motivated due to the rising cost of living, while 12.5 percent wanted to help pay off the medical debt accumulated during the pandemic.

Forty-four percent of those planning to come out of retirement are “somewhat concerned” about the state of their finances, while 39 percent admitted to being “highly concerned.”