The Growing Benefits Gap and Its Impact on the Gig Economy
More and more people are choosing to work independently, whether through gig platforms like Uber and DoorDash, freelancing, or juggling multiple part-time jobs. It sounds ideal, right? The flexibility to work when and how you want is a major draw. But there’s a big downside lurking behind that flexibility—a growing benefits gap that leaves many without essential protections like health insurance, paid time off, and financial security.
A recent report from Stride Health, in partnership with Mastercard, sheds light on the reality that millions of independent workers face. In the U.S. alone, over 60 million people work outside of traditional employment, and they’re feeling the strain. The report highlights the financial struggles of gig workers, freelancers, and part-timers, and it’s clear that the old way of providing benefits—through full-time jobs—isn’t working for today’s diverse workforce.
One of the most eye-opening findings from the report is that 61% of surveyed workers can't always cover their monthly expenses with their earnings. That’s the reality for a lot of gig workers who deal with unpredictable incomes. Without employer-sponsored benefits like health insurance or paid time off, making ends meet becomes even tougher. And for 26% of workers, saving money isn’t even an option because their income just doesn’t stretch that far. When you’re working multiple jobs to get by, saving for the future can feel impossible.
Speaking of working multiple jobs, 37% of independent workers reported having more than one job in the past year. That might not be surprising in today’s gig economy, but it does point to how fragile many people’s financial situations are. With no safety net of benefits to fall back on, gig workers often have to hustle harder just to stay afloat.
The lack of benefits also takes a toll on workers’ ability to rest. The report found that 31% of gig workers rarely or never take scheduled time off. Think about that—without paid vacation or sick days, many feel like they can’t afford to take a break. And for lower-income workers, the gaps in financial stability and benefits are even wider, creating a stressful cycle that’s hard to break.
What’s even more surprising is that it’s not just independent contractors who are affected. The report revealed that many W-2 employees, particularly those working part-time, don’t have access to employer-sponsored benefits either. The assumption that traditional employment always comes with security just doesn’t hold true for everyone.
So, where do we go from here? Stride Health’s Portable Benefits Platform is one solution aiming to close the gap. Designed to meet the needs of today’s flexible workforce, Stride provides independent workers with access to health, dental, and vision insurance, along with financial tools to help manage taxes and savings. All of this is available through a single app, making it easier for gig workers to stay financially secure without having to give up the freedom they value so much.
This is especially important as younger generations, like Millennials and Gen Z, are increasingly drawn to gig work for the flexibility it offers. But flexibility shouldn’t mean sacrificing long-term security, and that’s where portable benefits come in. Stride’s platform offers gig workers the chance to build their own safety nets—whether it’s through Stride Save, which helps them set aside earnings for things like health insurance and taxes, or Stride Contributions, which enables companies to contribute to workers’ accounts for health care, savings, or paid time off.
Mastercard’s partnership with Stride is a significant step toward making benefits more accessible to independent workers. Through this collaboration, Mastercard customers—like card issuers and merchants—can provide access to Stride’s platform, giving gig workers a simple, affordable way to secure their financial futures. It’s the first time health and financial benefits have been made available through a payments network, marking an important shift in how we think about worker benefits.
As the gig economy continues to expand—it’s expected to reach 90 million workers by 2028—the need for portable benefits will only grow. Gig work has transformed from a side hustle into a central part of the workforce, and workers shouldn’t have to choose between flexibility and financial stability.
The benefits gap is a real issue, not just for gig workers, but for everyone in the workforce. The traditional system of providing benefits through full-time jobs doesn’t fit today’s reality, where more people are seeking flexibility and independence. Solutions like Stride’s platform offer hope, ensuring that workers can take control of their financial futures without sacrificing the freedom that brought them into the gig economy in the first place.
It’s clear: The way we work is changing, and the way we provide benefits needs to change too. With more people embracing the gig economy, the gap in benefits will only widen unless we rethink how workers access the protections they need.
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