No 401(k)? Here’s how to build retirement savings yourself

About 56 million American workers don’t have access to a 401(k) through their jobs, according to the Pew Charitable Trusts. Without automatic payroll deductions or employer matches, it’s easy to feel like you’re falling behind on your retirement goals. But that doesn’t mean you can’t build wealth for the future, it just takes more intention.

“Complacency or procrastination can be an absolute killer in saving for retirement,” says Troy Davidson, a wealth advisor at Ballast Rock Private Wealth. Even without a 401(k), one of the best ways to save for retirement is to “stay disciplined, methodical and consistent,” he adds.

Here are some proven strategies to help you recreate the benefits of a workplace plan — whether you’re self-employed, working at a small business, or in a job without retirement benefits.

Why IRAs Are Your First Line of Defense When There’s No 401(k)

If you can’t save in a 401(k), an Individual Retirement Account (IRA) is often your strongest next step. Of course, Davidson recommends first starting with an emergency fund — about six months of basic expenses — while addressing any high-interest or adjustable-rate debt. But once you’ve laid that foundation, turn your attention to tax-advantaged retirement accounts.

IRAs, whether traditional or Roth, give your money more room to grow and offer meaningful tax breaks. Traditional IRAs can reduce your taxable income today, while Roth IRAs grow tax-free for future withdrawals. In 2025, contribution limits are $7,000 ($8,000 if you’re 50 or older), and investing those dollars early means more contracts to work for you. If you still have the capacity after maxing out your IRA — and you qualify — consider funding a health savings account (HSA), then move on to taxable brokerage accounts.

Solo 401(k)s and SEP IRAs: Self-Employed Solutions That Work for Everyone

Freelancers, gig workers, and small business owners don’t have to miss out on the high contribution limits that make a 401(k) so effective. Solo 401(k)s and SEP IRAs allow you to save much more than an IRA alone. “These types of plans are very powerful tools,” says Davidson, noting that you may be able to contribute annually up to $70,000 versus your current $7,000 to an IRA ($8,000 if you’re 50 or older).

Another advantage is flexibility: You can make contributions when your income is high and skip months when cash flow is limited. This is a great benefit for those whose earnings vary from month to month.

Taxable Investment Accounts: Build wealth beyond the limits of a retirement account

Once you’ve maxed out your tax-advantaged options, a taxable brokerage account can sustain your savings momentum. As Davidson points out, they have many perks: “They have no contribution limits, have full flexibility to add or withdraw, and have no restrictions or penalties.”

Although you don’t get an upfront tax break, you can still invest for growth. Just be strategic: Favor index funds or exchange-traded funds (ETFs) with low turnover to limit short-term capital gains, and likewise, consider holding investments for more than a year to qualify for lower long-term interest rates.

How to Repeat Employer Matching When You’re Alone

An employer match is often described as “free money,” but without it, you’ll need to create the habit yourself. Davidson suggests pretending the match exists. “Commit to investing an additional percentage of your income each year,” he says. “Try to motivate yourself by allocating a larger percentage of your income each year toward retirement. The extra savings will only benefit you, and it is definitely worth it.”

For example, if you earn $60,000, an additional 3% contribution is $1,800 per year — a contribution small enough to fit into many budgets but large enough to grow into six figures over decades.