10.3.18 - Going It Solo: The Complicated Financial Lives Of Freelancers
'Working on your own can have its rewards, such as being able to set your own hours. But being self-employed also brings with it the headache of handling taxes — something a traditional employer normally does.'
'"No one really explains to you taxes and contracts and how to chase a client for that bill that they owe you — like, the nitty-gritty," says Bui, who lives in Los Angeles with her husband, who also works freelance, as a graphic designer.'
'They are among the rapidly expanding population of contingent workers that make up, by some estimates, a third of the U.S. workforce. They, like others, enjoy the flexibility of that work arrangement. On the other hand, neither of them has an employer contributing toward Social Security, health insurance, retirement, or paid vacations.'
'As the independent workforce grows and employers create fewer full-time positions, financial security is likely to become a bigger concern.'
'An unpredictable income and a lack of benefits make it hard for solo workers to save, says Caitlin Pearce, executive director of the Freelancers Union.'
'"Two-thirds of them are dipping into their savings every month to make ends meet. We see that freelancers as a result are really lagging behind employees when it comes to saving for retirement," Pearce says.'