With many workers unwilling or unable to retire at age 65 and many more wanting their independence, the notion of “retiring with a gold watch and pension” will no longer be “the” goal by 2027 as more individuals pursue part-time or independent work, according to predictions by a firm that tracks self-employed workers.
MBO Partners offers 10 predictions about the state of the U.S. workforce that it believes will come true over the next decade, based on its own SOI data and related industry research.
The firm explains that traditional retirement will no longer be the goal, as workers are finding themselves unable or unwilling to retire due to economic cycles, a lack of financial planning and the fact that people are living well into their 80s.
The firm notes that as individuals grow older, many prefer flexible, part-time work instead of full-time work in order to spend time with family, care for relatives or enjoy more personal time. In addition, many Baby Boomers may be interested in taking up a second career as an independent worker, allowing them to control their schedule.
Nearly 6 in 10 Americans will work as an independent professional at some point over the next decade, MBO predicts. The firm notes that more than 40 million Americans (32% of the current private workforce) currently work as independent professionals, a number that is expected to grow.
One of the underlying themes of the list is that the independent, gig economy is here to stay. MBO suggests that companies will need to “refine policies and procedures” in order to attract top talent from the independent workforce. “The unique combination of a skills gap, talent shortage, and increasing desire among workers to have an independent career puts companies in the unique position of a war for talent not just for traditional employees, but for independents as well,” the report emphasizes.
Here’s the full list:
- By 2027, more than half of the workforce will be, or will have been, an independent worker.
- Independence will become “an episodic destination,” not “an end state.”
- The “barbell effect” will continue.
- Companies will buy results, not labor.
- Independent workers will team up for maximum results.
- Automation and artificial intelligence will affect high-skilled and less-skilled independents differently.
- Gen Z will be the most independent generation yet.
- Traditional retirement will no longer be the goal.
- Companies will compete aggressively to attract top independent talent.
- Public policy will evolve to match the changing nature of work.
