Data & Research April 28, 2025

A Side Gig Retirement Plan

Two-thirds of retired Americans wish they had a side gig to support their ideal retirement lifestyle, and 93% of those retired that have gig jobs, work because they enjoy it.

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Americans will be living longer in coming years, but they may not necessarily be working longer to earn income for those additional years of living. That’s one of the takeaways from a financial resilience and longevity report from John Hancock Retirement that draws on its U.S. retirement plan participants and a separate panel of retirees.

According to the study, 62% of retirees surveyed left the workforce sooner than expected, both shortening their time to save in a workplace plan and extending their financial needs in retirement.

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Many retired Americans find themselves struggling to support the retirement lifestyle they once envisioned. According to a survey by financial services firm D.A. Davidson & Co., 41% of retirees say they currently cannot afford their ideal retirement.

Of those who work side jobs because of financial reasons, 20% turned to part-time work or side gigs to pay off existing debts, and 17% wanted to financially support their ideal retirement lifestyle.

Their financial shortfall can be attributed to factors such as inadequate planning for the financial realities of retirement. As a result, many are rethinking what retirement looks like, with some turning to side gigs to fill the financial gap.

Yet, the number one reason D.A. Davidson survey respondents said they took on a side gig in retirement is that staying lightly employed doesn’t have to be a burden. Ninety-three percent of retirees with a side gig say they enjoy it.

Beyond enjoyment, more than half (55%) say they chose their gig to stay mentally or socially engaged, showing that for many, it’s about more than just extra income—it’s about fulfillment.

“The definition of—and classic timeline for—retirement is changing,” said Andrew Crowell, financial advisor and vice chairman of wealth management at D.A. Davidson. “While many retirees might picture never working again, a side gig in retirement can be a fun and meaningful way to stay engaged in the community while supporting a more ideal retirement overall.”

The Markets April 28, 2025

Nasdaq-100 Underrepresented in 401(k) Plans

A survey by Shelton Capital Management showed that allocations to Nasdaq-100 Index mutual funds make up fewer than 1% of all 401(k) assets.

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Although a majority of 401(k) plan participants express that they would like access to a Nasdaq-100 product as an investment option, very few 401(k) plans actually offer it.

In the Annual Nasdaq-100 Retirement Plan Survey, conducted by Shelton Capital Management, nearly 80% of 401(k) participants surveyed recognized the importance of investing in a Nasdaq-100 product within their retirement plan. The Nasdaq-100 Index includes 100 of the largest domestic and international non-financial companies listed on the Nasdaq stock exchange, based on market capitalization.

However, based on figures from more than 7,000 401(k) plans, allocations to Nasdaq-100 Index mutual funds make up fewer than 1% of all 401(k) assets—a significant underrepresentation compared with the S&P 500 Index and other large-cap growth indexes, according to BrightScope Beacon.

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The Annual Nasdaq-100 Retirement Plan Survey included responses from 1,000 401(k) participants, reflecting the 2023 U.S. Census data for gender, age range and region. The survey was fielded between February 10 and February 14, 2025.

According to Morningstar, the Nasdaq-100 Index has given investors access to tech-driven brands, “transforming industries and the global economy,” for 40 years and has amassed more than $300 billion in assets tied to the index.

The Investment Company Institute also reported on March 25 that Americans held $12.4 trillion in employer-sponsored defined contribution plans, as of December 31, 2024, of which $8.9 trillion was held in 401(k) plans.

In the Shelton Capital Management survey of 401(k) plan participants, 45% said they already possess a product that tracks the Nasdaq-100 within their portfolios, but 35% said they were not sure which specific funds of the Nasdaq-100 they were holding. In addition, about half of respondents said they did not know what the Nasdaq-100 Index was and what companies are included in the index.

The majority of investors said the “long-term, superior track record” of the Nasdaq-100 Index is what attracts them most to it as an investment option. Regarding in which companies participants reported being most interested in investing, 60% said Amazon was most important to them, followed by Apple (58%) and Microsoft (50%).

Meanwhile, participants did express some concerns about trading fees, as 45% said they are most worried about brokerage fees.

Having access to the Nasdaq-100 Index within their 401(k) plan was considered important to survey respondents, but to a varying degree: 35% said it was somewhat important, and 18% said it was extremely important.

“From 1994 through the end of 2024, the S&P 500 returned over 2,000%, while the Nasdaq returned over 6,000%,” Shelton Capital Management CEO Steve Rogers said in statement. “This was a great risk/return trade-off for the additional volatility. For investors comfortable with the additional risk inside of their 401(k) account, owning funds tied to this benchmark was a great way to build wealth.”

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