Americans are increasingly falling behind on their retirement savings, and it could be even worse for the millions working in the gig economy.
Despite the overall gig economy booming with companies like Lyft (LYFT) and Uber (UBER) going public, the companies’ staunch resistance to meet drivers’ demands for full-time employment and benefits “has the potential” to worsen the retirement crisis, Chad Parks, Founder and CEO of Ubiquity Retirement + Savings told Yahoo Finance.
“To the best of our knowledge, ride-share companies have not formalized retirement savings options for their drivers,” Parks explained. And “in today’s world where most companies have abandoned pension plans and Social Security provides a very small portion of your retirement income, it puts the onus squarely on you to save for your future. It’s unfortunate, but this is the reality.”