Experts Lift Savings Target to 25% as 71.9 Million Freelancers Reshape U.S. Budgeting
Updated
Updated · The Independent · May 13
Experts Lift Savings Target to 25% as 71.9 Million Freelancers Reshape U.S. Budgeting
2 articles · Updated · The Independent · May 13
A 25% savings rate is now a better rule of thumb than the long-cited 10% for many workers, analysts said, with 50% or more needed for aggressive goals such as early retirement.
That higher target reflects two shifts: a Social Security fund projected to be depleted by 2032, potentially cutting benefits by up to 25%, and a workforce with less predictable income.
For the 71.9 million U.S. independent contractors and freelancers counted in a 2025 MBO Partners study, experts said fixed-percentage plans like 10% or even the 50/30/20 rule may not fit uneven monthly earnings.
Ricca instead recommended saving more in high-income months, while still keeping retirement contributions steady where possible and first building an emergency fund starting with $1,000.
Once that starter fund is in place, the goal should expand to three to six months of expenses, ideally held in a high-yield savings or money-market account rather than tapped from a 401(k) or IRA.
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