A recent survey by Everly Life highlights the financial struggles freelancers face, despite the growing appeal of gig work. While 75% of freelancers feel confident their work will help them meet retirement goals, 54% report heightened pressure to save before they retire. The findings underscore the financial uncertainty that comes with self-employment, despite the autonomy it offers.
Financial Challenges for Freelancers
The survey of 2,000 gig workers identified income instability, lack of paid time off, and high health insurance costs as the biggest financial challenges.
- No Paid Vacation (42%) – Many freelancers struggle to take time off, as they lack employer-sponsored benefits.
- Delayed Payments (40%) – Income insecurity is a major concern, with inconsistent payments making budgeting difficult. Only 26% feel confident their families would be financially secure if they lost their income.
- High Health Insurance Costs (38%) – Nearly half of uninsured freelancers neglect medical care due to cost concerns.
- Complex Taxes (36%) – Many struggle with tax planning without employer-provided assistance.
- Retirement Planning Pressures – The average freelancer aims to retire at 58 years old, expecting to need $353,063 in savings.
“Our research shows that financial security is a major concern for freelancers,” said Meredith Bell, Director of Marketing at Everly Life. “Without employer benefits like paid vacation time and life insurance, many struggle to take time off or protect their family’s financial future. This is why having the right financial planning tools and insurance coverage is essential for freelancers.”
Why Freelancers Stick With It
Despite financial risks, freelancers continue to value their independence. The survey found that the top perks of freelancing include:
- Choosing Projects (43%) – Many freelancers prefer selecting work they are passionate about.
- Flexible Hours (41%) – The ability to set their own schedule supports better work-life balance.
- Being Their Own Boss (40%) – Many enjoy the autonomy of managing their own business.
- Remote Work (39%) – The ability to work from anywhere is a major draw.
- More Creativity (38%) – Many freelancers value the freedom to express their creativity.
“The flexibility freelancing offers is what draws people in,” Bell said. “Being able to choose projects and set your own schedule is incredibly appealing. However, the key to sustaining this lifestyle is having a solid financial plan in place.”
Financial Planning Becomes a Priority
The study also found that 74% of freelancers have adjusted their savings habits due to economic changes. Many are prioritizing mental health days (42%) and life insurance (37%) over discretionary spending like travel (25%).
“Freelancing offers an incredible level of freedom and flexibility, but our survey highlights the financial uncertainties that come with it,” Bell added. “Financial planning—whether through savings, life insurance, or structured retirement strategies—can help freelancers achieve security and peace of mind.”
Image: Envato
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