No 401(k)? Here’s How to Build Retirement Savings on Your Own

About 56 million U.S. workers have no 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 retirement goals. But that doesn’t mean you can’t build wealth for the future—it just takes a little 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 re-create the benefits of a workplace plan—whether you’re self-employed, working for 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 most powerful next step. Of course, Davidson first advises starting with an emergency fund—about six months of essential expenses—while tackling any high-interest or adjustable-rate debt. But once that foundation is in place, shift your attention to tax-advantaged retirement accounts.

IRAs, whether traditional or Roth, give your money a longer runway for growth 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 getting those dollars invested early means more decades for compounding to work in your favor. If you still have capacity after maxing an IRA—and you’re eligible—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 401(k)s so effective. Solo 401(k)s and SEP IRAs let you save far more than an IRA alone. “These types of plans are very powerful tools,” says Davidson, pointing out that you may be able to contribute annually up to $70,000 as opposed to the current $7,000 for 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 tight. That’s a huge benefit for those whose earnings vary from month to month.

Taxable Investment Accounts: Building Wealth Beyond Retirement Account Limits

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

While 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 similarly, consider holding investments for more than a year to qualify for lower long-term rates.

How to Replicate Employer Matching When You’re on Your Own

An employer match is often described as “free money,” but without one, you’ll need to manufacture the habit yourself. Davidson suggests pretending the match exists. “Commit to invest an extra percent of your income each year. Try to push yourself by putting a larger percentage of earnings each year toward retirement. The extra savings will only benefit you, which is definitely worth it,” he says.

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