On Demand Workforce SurveyThe on demand workforce is the future of the American economy (Top 2 box) 56% Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143

This document contains confidential information for use by TD Ameritrade Holding Corporation and its subsidiaries.

January 2019

Examining the new version of the American Dream

1

On Demand Workforce Survey

1/30/2019

Table of contents

1. Methodology……………………………….……….. 3

2. Work Is Getting Re-Worked…………..…..……… 4

3. Free Range Mentality………................................ 11

4. Dollars & Sense………......................................... 21

2

3

Methodology

• Full-time Freelancers – identified as self-employed full-time

• Side Hustlers – identified as employed full-time by a traditional company, but also working another part-time job as a contractor, consultant or freelancer

• Traditional Work – identified as employed full-time by a traditional company, but not having employment outside that job

Full-time Freelancers

(n=220)

This survey was conducted online within the United States by The Harris Poll on behalf of TD Ameritrade from September 28 - October 3, 2018, among 2,143 U.S. adults ages 18 and older. The Harris Poll is separate from and not affiliated with TD Ameritrade, which is not responsible for their services or policies. Key populations include:

Side Hustlers

(n=218)

Traditional Work (n=975)

About TD Ameritrade Holding Corporation

TD Ameritrade provides investing services and education to more than 11 million client accounts totaling approximately $1.2 trillion in assets, and custodial services to more than 7,000 registered investment advisors. We are a leader in U.S. retail trading, executing an average of approximately 900,000 trades per day for our clients, more than a quarter of which come from mobile devices. We have a proud history of innovation, dating back to our start in 1975, and today our team of 10,000-strong is committed to carrying it forward. Together, we are leveraging the latest in cutting edge technologies and one-on-one client care to transform lives, and investing, for the better. Learn more by visiting TD Ameritrade’s newsroom at www.amtd.com, or read our stories at Fresh Accounts. Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org)/SIPC (www.SIPC.org). About The Harris Poll

The Harris Poll is one of the longest-running surveys in the U.S., tracking public opinion, motivations and social sentiment since 1963. It is now part of Harris Insights & Analytics, a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. We work with clients in three primary areas; building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible.

On Demand Workers (n=438)

http://finra.org/

http://sipc.org/

4

Work Is Getting Re-Worked The rise of on demand to achieve the American Dream

Employees have lost trust in employers

5

WORK IS GETTING RE-WORKED

Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143

Compared to 10 years ago… % total

Most Americans believe that employers are becoming less loyal, making employees more expendable

56%

Employers are less loyal to employees

50%

Employees are more expendable

38%

Employers are less trustworthy

Therefore employees are less loyal

6



Compared to 10 years ago… % total

And the burden it on them to become more like “CEO of 1” – responsible for their own income, and retirement

48%

Employees are less loyal to employers

33%

Employees are more responsible for their own

income, beyond salary

51%

Employees are more responsible for their own

savings / retirement

94%

Making work a more significant component of personal identity

Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143 7


More than half say their work is a “major part of their identity”

“My work is a major part of my identity” (Top 2 box)

54% Total

67% On Demand Workers

70% Side Hustlers

Leading many to opt out of traditional paths and experiment with on demand

8



Which of the following work arrangements most appeals to you?

37% 26% 38%

Millennials Want It All

Freelance or “on demand” job

A combination of both

Traditional work at a corporate job

64% of Americans would ideally like to include some form of freelancing in their careers

44% would ideally have both freelance and traditional work, compared to only 25% that want to freelance full-time.

Millennials are especially likely to choose freelancing flexibility over traditional corporate employment

9



84%

74%

72%

57%

53%

75%

71%

65%

54%

48%

16%

26%

28%

43%

47%

25%

29%

35%

46%

52%

Would you rather…?

Work a 9 to 5 corporate job for 40 years Work 80 hours a week freelancing for 20 years

Millennials

Gen X

Young Boomers

Old Boomers

Silent Generation

Millennials

Gen X

Young Boomers

Old Boomers

Silent Generation

Work a 9 to 5 job and pursue passions on your own time Make work your passion and work around the clock

In fact, On Demand is seen as the vehicle to achieve the modern American Dream

10


Freelancing is the modern version of the American Dream (Top 2 box)

60% The on demand workforce is the future of the American economy (Top 2 box)

56%


On Demand Workers 71%

Traditional Workers 57%



This is especially true for those who have already joined the On Demand Economy

Less than half say “freelancing is overrated” (45%), including 32% of on demand workers and 47% of traditional workers.

11

Free Range Mentality Motivations and attitudes towards on demand work

Over 1/3 of Americans would rather work harder longer to be able to define their career and pursue their passions

12

FREE RANGE MENTALITY


On Demand Workers

39% 39% Work 80 hours a week freelancing for 20 years

61% Work a 9 to 5

corporate job for 40 years

56%

39% 33% Make work your passion and work around the clock

67% Work a 9 to 5 job and

pursue passions on your own time

47%

39% 32% Determine my own annual income via freelance work

68% Have a concrete

salary from an employer


On Demand Workers

They also crave the ability to determine their own income

% Total % Total % Total


Those who do decide to take the plunge report higher quality of life

13



Happy With Work

Stressed With Work

84%

74% 77%

41%

61% 59%

Full-time freelancers experience the highest levels of happiness, with the lowest levels of stress

Full-time freelancers Side hustlers Traditional workers

Traditional workers


Side hustlers enjoy their hustles but feel they are getting spread too thin

14


Happy With Work

Stressed With Work

84%

74%

41%

61% 59%

They also report working 20 more hours each week than the average American

Full-time freelancers Side hustlers

84% of side hustlers are happy with their side hustle, while only 36% are stressed with their side hustle.

For the love of the hustle

Average work week (in hours)

29h Total

49h Side Hustlers

77%

Most begin side hustling for financial reasons

15


Source: The Harris Poll on behalf of TD Ameritrade (October 2018); Side Hustlers n = 216

59% of Americans expect to have a side hustle at some point in their life

26%

29%

32%

36%

38%

42%

44%

To dispel fears about my future finances

To pursue a passion

To save for retirement

To increase my nest egg

To meet my current spending

To save for major purchases

To pay off debt

Side Hustlers

Why are you working a side gig in addition to your full-time job?

Ladies Who Save

Women are 20% more likely than men to hustle to pay off debt

Side hustlers are more likely to see their work as a tool for financial security

16



Full-time freelancers, on the other hand, see the financial opportunity to control their own income

32%

52%

47%

37% Side Hustlers


Security: To Protect Myself Financially Opportunity: To Pursue My Dreams

Which of the following best describes the reason you joined the on demand workforce?

Freelancers are more lifestyle-focused than monetary on the other hand

17


Source: The Harris Poll on behalf of TD Ameritrade; Full-time Freelance n=220

The top reason for choosing to gig full-time is increased autonomy, followed by balance

13%

28%

37%

38%

50%

There was no other option for employment

To pursue more fulfilling/meaningful work

To increase my income

To improve work-life balance

For increased flexibility/independence


Why did you join the full-time On demand workforce?

55% Gen X

39% Millennials

Freelancers also tend to be more values-driven

18



60% of Full-time Freelancers have turned down a project that didn’t align with their values, compared to 59% of Side Hustlers and 43% of Traditional Workers

44%

33%

56%


Traditional Workers

Get a 20% raise but have to work at a job you hate

Take a 20% pay cut to work at a job you love


Overall, on demand workers have a higher appetite for flexibility

19



One-third of Americans are planning for high turnover in their work in the short- and long-term

expect to have at least 10 jobs over the course of their careers (Top 2 box)

33%



Have been at current work less than 2 years (Top 2 box)

32%



Plan to stay at current work less than 2 years (Top 2 box)

30%



Even traditional workers are looking for increased flexibility at the office

20



74% of Americans agree that Corporate America needs to become more flexible to compete with freelancing opportunities

11%

12%

28%

27%

45%

35%

38%

33%

44%

52%

15%

29%

32%

30%

48%

49%

53%

55%

62%

59%

12%

20%

25%

34%

42%

51%

57%

62%

66%

67%

Childcare provided on site

Financial advising included in benefits package

Time shifting

Unlimited vacation

The ability to work remotely

Option to work a 4-day workweek with 10-hourdays

Performance bonuses

Employer contributions to retirement plans

Excellent medical insurance coverage

Flexible benefits packages

Traditional Workers Side Hustlers Full-time Freelancers

Which of the following benefits would make you most likely to want to work at a traditional corporation?

23% Parents

21

Dollars & Sense Views on finances and retirement

13%

20%

22%

27%

11%

23%

25%

28%

11%

14%

22%

41%

Lack of a safety net

Irregular work schedule

Lack of traditional benefits

Financial uncertainty

Traditional Workers Side Hustlers Full-time Freelancers

Financial uncertainty is the top barrier to joining the on demand workforce

22

VIEWS ON FINANCES & RETIREMENT


But freelancers worry most about about the lack of benefits

What is the biggest drawback to joining the on demand workforce?

Agree an economy driven by on demand work is not sustainable long-term (Top 2 box)

57%



All workers desire to retire on a similar timeframe

23



36% 26% 39% A combination of both

Pursue intermittent retirement

38% On Demand

34% Traditional

Somewhat or very likely to…

36%

Take a 1-year unpaid sabbatical

37% On Demand

31% Traditional

31%

36%

69%


Traditional Workers

Fully retire at age 75

Retire and continue part-time work at age 60


On demand workers are more likely to leverage their flexibility to create mini-retirement breaks

24



On demand work helps bridge the gap from full-time work into retirement (Top 2 box)

69%

On Demand Workers 77% Traditional Workers 70%

69%

76%

79%

73%

76%

81%

Retire earlier

Continue to feel I have a purpose

Stay active and keep social

Traditional Workers On Demand Workers

Somewhat or very likely to work part-time in retirement to…

And many view on demand work as a tool to transition into retirement Both current on-demand and traditional workers equally believe this will help them stay active, maintain purpose and even achieve full retirement sooner

9%

10%

13%

14%

19%

52%

58%

63%

8%

8%

11%

14%

16%

59%

67%

73%

Stress

Fear

Anxiety

Worry

Concern

Rest

Enjoyment

Relaxation

Traditional Workers On Demand Workers



Which of the following do you most associate with retirement?

Posi

tive

Nega

tive

Associated with retirement planning (On Demand Workforce)

1 Complicated (41%)

2 Stressful (39%)

3 Empowering (35%)

4 Approachable (31%)

5 Simple (20%)

6 Isolating (4%)

On Demand workers are more stressed about the prospect of retiring 66% of On Demand workers say it’s harder to plan for retirement as part of the On Demand workforce

3%

11%

18%

16%

12%

19%

14%

13%

17%

2%

7%

18%

19%

19%

27%

28%

31%

51%

1%

6%

22%

23%

24%

23%

18%

20%

59%

SEP IRA

Self-directed IRA

Roth IRA

Traditional IRA

Traditional pension plan

Investment / brokerage account(s)

Single-participant 401(k) plan

Health Savings Account (HSA)

Employee-sponsored 401(k)

Traditional Work Side Hustlers Full-time Freelancers

On demand workers have less choices available to them to participate in retirement plans



Do you have any of the following retirement savings plans?

There are retirement offerings available that meet my needs (Top 2 box)

Full-time Freelancers 60%

Side Hustlers 69%


Though slightly more likely to choose SEP and Self-Directed IRAs



Freelancers are looking for retirement allies, especially on saving for retirement and investing

19%

25%

33%

35%

38%

41%

Planning for income interruptions

Debt

Saving for important life events / major purchases

Investing

Healthcare costs

Saving for retirement


Which of the following are the biggest aspects of financial planning that you need help managing?

expect financial companies to provide products and services that appeal to the on demand workforce (Top 2 box)

69%



55% Millennials

49% Millennials

53% Millennials

44% Millennials



Freelancers are also looking for financial companies to provide education Education on financial best practices is a higher priority than funding or other types of support

32%

45%

46%

47%

59%

Partnering with co-working spaces

Providing funding for entrepreneurial ventures

Sponsoring freelance and on-demand communities

Education on business best practices

Education on financial best practices


How do you believe financial institutions can support the on demand workforce?

expect financial companies to help educate the on demand workforce when it comes to saving and investing (Top 2 box)

67%



Documents

On Demand Workforce SurveyThe on demand workforce is the future of the American economy (Top 2 box) 56% Source: The Harris Poll on behalf of TD Ameritrade (October 2018); n = 2,143