Without employer-sponsored retirement plans, freelancers must take retirement savings into their own hands. Here’s how.
Why Freelancers Need Retirement Planning
- No pension or 401(k) match from employer
- Irregular income requires extra planning
- Social Security may not be enough
- Longer working years possible, but savings still essential
Retirement Account Options
Solo 401(k)
Maximum contribution up to $70,000 in 2025. Best for high earners.
SEP IRA
Contribute up to 25% of net self-employment income, maximum $69,000. Simple to set up.
SIMPLE IRA
Lower contribution limits but allows employee contributions. Good if you have employees.
Traditional/Roth IRA
Contribute up to $7,000 ($8,000 if 50+). Simple but limited contribution.
How Much to Save
Aim to save 20-30% of your income for retirement. If that’s not possible, start with at least 10%.
Tips for Success
- Automate contributions
- Start early, even with small amounts
- Increase contributions when income rises
- Use windfalls (tax refunds, bonuses) for retirement
- Consider a financial advisor
FTC Affiliate Disclosure
This page contains affiliate links. If you click on a link and make a purchase, we may earn a commission at no additional cost to you. NUOBILINS only recommends products and services we believe provide value to freelancers.
Questions? Contact us at support@nuobilins.com
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