PLANADVISER - May/June 2021 - 11

be other benefits from working with gig
participants. Establishing a rapport with
a gig employer could open the door to
provide retirement and wealth management
services to the C-suite executives,
he says.
Advisers serving individual gig workers
have a few good options to suggest for
retirement savings vehicles, including a
SEP IRA [simplified employee pension individual
retirement account] or an individual,
or owner-only, 401(k) plan, Musto says.
" A SEP IRA is a reasonably low-cost,
owner-only employer retirement plan for
independent contractors to start saving for
their own retirement, " he says. " An owneronly
401(k) plan, another alternative, is
generally quick and easy to start, and
simple to administer. If they have several
different virtual marketplace companies
to which they provide services, independent
contractors can use their earnings
from all self-employment sources to make
retirement contributions and control their
overall retirement as a result. "
Despite the DOL's wage and hour
opinion letter, DiSalvo says he thinks,
with pooled employer plans (PEPs) now
available, some gig companies-those that
broker gig assignments-might join them,
thereby enabling retirement saving for
their workforce.
DiSalvo sees the role of advisers serving
gig workers as two-fold: " The first is as
a pure investment consultant, and the
second is as a holistic adviser on employee
benefits,
such as
retirement
savings,
health savings accounts [HSAs], deferred
compensation, 529 college savings plans
and financial wellness. "
He advises those pursuing the gig
market to charge a one-time or subscription-based
fee, not an asset-based fee. " [A
JD Power survey] found that 74% of investors
under age 40 prefer a one-time fee for
full-service wealth management, " he says.
Advisers to this market will also need
to rely on technology to scale services
cost-effectively to multiple employees,
DiSalvo says. " The delivery model is key.
I believe the adviser community is in a
unique position to provide these services
and financial literacy education. "
Some technology solutions are specifically
targeted to this workforce segment.
Mercer is launching Mercer Indigo on July 1
to provide retirement, health care and other
standard benefits for the gig economy, says
Mike Bux, a principal in the company.
" We foresee great opportunities for
innovation in this space because the gig
economy is a workforce with fragmented
benefit solutions, " Bux says. " Mercer Indigo
is designed as an on-demand platform to
support and offer services for gig, freelance,
seasonal or part-time workers. Companies
can also white label the platform and use
their own brand. " -John Manganaro
Reasons People Seek 'Gig' Work
38%
Earn extra
money
33%
Learn new
skills
32% 31%
Control my
schedule
Try different
jobs/roles
28%
Spend
more time
with family
Source: ManpowerGroup Solutions, " #GigResponsibly: The Rise of NextGen Work "
25%
Try to win
a full-time
job
23%
Try
temporary
job first
21%
Feel less
stress
19%
Only work
I can find
52%
Full-time
workers
*
Few gig
workers have
assets in an
employersponsored
retirement
plan
16%
Gig
workers
planadviser.com
May-June 2021 | 11
http://www.planadviser.com
PLANADVISER - May/June 2021

Table of Contents for the Digital Edition of PLANADVISER - May/June 2021
