Not everyone has a workplace retirement plan, and that can make saving for the future feel tricky. Most of the advice you hear revolves around employer-sponsored plans like 401(k)s, 403(b)s, and other employer-sponsored options. But here’s the truth: you can build a solid retirement nest egg without one.
Whether you’re self-employed, between jobs, or simply don’t have access to a 401(k), there are powerful ways to save on your own.
Why Saving Without a Workplace Plan Feels Hard
Employer-sponsored retirement plans are convenient for two main reasons:
- Automatic Contributions: The employer pays some of the employee's salary into a retirement plan for them when the employee enrolls.
- Employer Match: This is a savings boost added on top of your savings (with conditions).
But there are trade-offs too:
- Waiting periods before you can enroll
- With vesting schedules, you don’t own your employer's match unless you remain with the company long enough.
- Limited investment choices that may not fit your goals.
Without a 401(k), you’re not stuck. You're actually freer to choose a plan that works best for you.
How IRAs Can Put You in Control
IRAs (Individual Retirement Accounts) put you in control of your retirement without needing a workplace plan. There’s no waiting for HR, no vesting schedules, and no dependency on an employer match. You open the account, fund it, and let your money grow on your terms. Unlike a 401(k), your savings aren’t tied to a job. When you leave a position, there’s no need to juggle transfers or worry about losing employer contributions. Your money stays with you, fully under your control, without workplace restrictions.
There are two main types of IRAs you’ll hear about: Traditional IRAs and Roth IRAs.
- Traditional IRA: Contributions may be tax-deductible, and your money grows tax-deferred. You’ll pay taxes when you withdraw in retirement. This can be a smart move if you expect to be in a lower tax bracket later.
- Roth IRA: Contributions are made with after-tax money, but withdrawals in retirement are tax-free, as long as you meet certain conditions. Roth IRAs are a great option if you anticipate being in a higher tax bracket down the road or just love the idea of tax-advantaged income in retirement.
Contribution Limits: In 2025, you can contribute up to $7,000 annually, or $8,000 if you’re age 50 or older with catch-up contributions.
For those who are self-employed or run a small business, a SEP IRA can offer even more flexibility and higher contribution limits.
