The increasing shift to independent work arrangements and gig‐work has provided millions of Americans with more flexible ways to earn a living. Unfortunately, policies designed for traditional employer‐employee relationships create unnecessary barriers for contract‐based and platform workers. One example is retirement savings accounts—such as 401(k)s and IRAs—which are poorly suited for the diverse needs of gig workers. Universal savings accounts (USA) offer a more flexible, independent, and non‐distortionary solution to help independent workers save in a simpler way for their own priorities.
USAs could function similarly to Roth IRA retirement accounts but without restrictions on who can contribute, when funds can be withdrawn, or on what they can be spent. Creating USAs would allow all workers—especially independent workers— to access a simpler and more effective way to save.
