Start a New Chapter
Workers over age 50 are bouncing back from unemployment with flexjobs and side gigs — here’s what you need to know.
No one is immune to losing a job, even with a great track record. Thankfully, many workers have replaced lost income by joining the gig economy as a freelancer or contractor.
Along the way, they’ve also discovered a silver lining: Being able to work a more flexible schedule while building new skills to list on a resume.
To help you bounce back from unemployment, we’ve outlined the steps to begin working as a freelancer or independent contractor — and get started earning income as soon as possible.
Find the Flexible Gig That’s Right for You
Discover practical tips and access online workshops for getting started and finding work in the Freelancing Resource Center – free from the experts at AARP Foundation.
Shift Your Mindset
When you’re a freelancer, you’re in charge of what you do and when you do it. Instead of having a boss, you have clients or customers. That sense of freedom can be both exhilarating and overwhelming.
Understanding the ins and outs — from finding work to paying your taxes — is the key to making it work. The first step to getting started is understanding how being self employed is different from being an employee.
| Employment | Self-Employment |
 You’re an employee with a boss Your boss sets your schedule Your income taxes are withheld from your paycheck |
You provide a service to your clients or customers You set your own schedule You pay quarterly estimated taxes on your income |
The good news is that although you may be working for yourself, you don’t have to go it alone.
More than 57 million Americans (about 35% of the U.S. workforce) did some form of independent work in 2019, so you’re in good company.
In addition, there are educational resources vetted by self-employment experts that can help you set yourself up for success. There’s never been a better time to be self-employed.
The AARP Foundation Freelancing Resource Center, for example, has online workshops and helpful tips for getting started, plus tools for finding work in a variety of roles and industries.
Explore Your Options
While you may be coming from a long career in a particular industry, now’s the time to pause and think about what you really want to do. Write down your skills, interests, and desires to help you clarify your goals to ensure you find the right fit.
There are just as many ways to work for yourself as there are ways to work for someone else. Here are the three most common ways people work for themselves:
Independent Contractor
This is usually full-time or part-time work done for a specified amount of time for one company. People can often find the same kind of work they did before they were laid off as a contractor, especially if they worked in fields such as IT, marketing, or bookkeeping. This kind of role is most like being an employee and you may still receive a W-2, but you’re usually responsible for your own benefits and income taxes.
Side Gigs
There has been an explosion of online platforms that connect people wanting to earn extra income through so-called side gigs. Whether it’s dog walking on Wag, delivering groceries on Instacart, or providing caregiving for kids, adults, or pets through Care.com, there are all sorts of companies looking for people looking for flexible work. You track your income and pay your own taxes. You typically must provide proof of a valid driver’s license and pass some sort of background check before you can sign up for gigs through an app on your smartphone.
Consulting Business
Running your own consulting business is the same as being an independent contractor except you have multiple clients and run it more like a business. Virtual assistants, proofreaders and editors, translators, social media marketing, data entry are ideal roles for replacing lost income. You will usually receive 1099s from your clients so you can track income for paying your own taxes.
Watch Out for Red Flags
While the vast majority of freelance jobs are perfectly safe, be cautious when reviewing online opportunities, opening links or attachments from strangers, or providing any personal information.
Here are few general rules to follow:
If it seems too good to be true, it probably is. Scammers try to bait people with offers that they want to believe despite their better judgment. Don’t fall for this — stay grounded in reality.
Protect your money. Be wary if a client asks you to pay for anything, offers to send you money for materials or equipment before you’ve done any work, or asks you to cash a check (especially a cashier’s check).
Most side gig agencies will pay you directly — and securely — right through their app, depositing your pay (minus any fees they charge for getting you the gig) into an account you can transfer into your bank account. You will never be asked to text or email bank account information to a reputable organization. (Find more tips for protecting yourself from job-offer scams.)
Protect your personal information. If someone asks you for personal information, especially your bank account information or Social Security number, be extremely cautious. You may need to fill out a W-9 that includes your Social Security number for some clients, but only do this once you are sure the client is a real client or company.