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How to Save For Retirement as a Freelancer

Chris O'Shea
May. 30, 2018
2 min read

How to save for retirement as a freelancer


The freelance life can be great while it lasts — you set your own hours, work from home, take on a variety of different projects, etc. It’s that “lasting” part that can be difficult. According to a study from Betterment, seven out of 10 full-time freelancers admit they don’t think they can maintain their lifestyle during retirement. One big reason for this? Just one-third of freelancers are regularly setting aside money for their golden years. If you’re a freelancer wondering just how you can find a path toward happy retirement, you should follow the tips below.

  • Jump In. One of the main obstacles freelancers face when saving for retirement is that there’s no one doing it for them. With no company 401(k), the burden is entirely on you. It’s time to take action. Open a retirement savings account such as a Roth IRA, traditional IRA, SEP-IRA or Solo 401(k). You can do this at a traditional investment company like Vanguard, Fidelity or Schwab, but you can also check out your own financial institution. The important thing is that you get started saving in one of these accounts as soon as possible.
  • Force Auto. It can be tough to make saving for retirement automatic when your paychecks fluctuate, but it must be done. As Money reports, one way to manage this is to deposit all your money into a business account, then pay yourself every two weeks, just like an employee at a typical job would get. And just like a typical employee, deduct taxes and retirement savings each time. When times are flush with work, let that money stack up in your business account and use it to keep paying and saving when times get lean.
  • Keep Going. Unlike traditional workers, you already have an important retirement years skill down pat: Picking up side work. That’s right — you can use the obstacle you faced in making retirement savings to your advantage. Don’t be shy about picking up some work here or there during your golden years to make things a bit more comfortable.

    • Related posts:

    1. When to Revamp Retirement Savings
    2. Looking Out
    3. How A Roth 401(k) Can Trick You Into Having More Saved For Retirement
    4. Everything You Need to Know About IRAs

    Chris O'Shea

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