As the shift in Canada’s labour market from permanent employment to on-demand, temporary or contractual employment becomes “the new normal,” workers will need to ensure they’re able to handle the financial challenges that come with this arrangement, according to a new report from Bank of Montreal’s (BMO) wealth-management division, released on Monday.

Specifically, of the 1,000 Canadian small-business owners surveyed for the report, entitled The Gig Economy: Achieving Financial Wellness with Confidence, 69% cited having no benefits, such as medical, dental or disability; 55% don’t get paid when they’re sick; and 41% are not earning enough.

“Since the global financial crisis in 2008, technology and automation have transformed just about everything we do,” said Joanna Rotenberg, group head, BMO Wealth Management, in a statement. “The new job economy has also changed the way Canadians save and invest. A change in the way Canadians hire or get hired means additional time and planning is needed for gig economy workers to achieve their financial goals.”

Of those surveyed for the report, 40% have worked or or currently work as self-employed professionals pursuing contract or freelance, project-based careers. In fact, 60% became self-employed by choice because they wanted to: have autonomy and control of their lives (49%); make extra money on the side (49%); balance career and family needs (42%); or because it was the only way to make an income (27%).

Furthermore, the report reveals that different generations of gig workers displayed some distinct characteristics and values. For example, baby boomers are more likely to value autonomy and control when taking freelance jobs (70%), or feel it was the only option at this stage to earn income (35%). In contrast, generation Xers value balancing career and family needs more than other groups (52%) while millennials are more inclined to work in the gig economy to make extra money on the side (53%) or until they find a better job (30%).

“While the freelance economy can be enticing and lucrative, offering flexibility and the option to work within one’s specialty or have a better work/life balance, it comes with its own set of challenges,” said Chris Buttigieg, director, wealth institute, at BMO Wealth Management, in a statement.

As such, gig workers need to have financial and business plans in place to ensure both their personal and business financial obligations are met. For example, they should put away money during good times to create an emergency fund of three to six months’ worth of savings. In addition, gig workers should automate payments to retirement accounts such as RRSPs and TFSAs to develop consistent savings habits.

In addition, gig workers should make investing in health and medical insurance a priority so that they receive the proper coverage to get the treatments needed, and they should protect themselves against the risk of not being able to work by obtaining a private disability or liability insurance plan.