When you’re in your twenties or thirties, retirement planning isn’t the sexiest part of running your freelance business. But here’s the truth – if you’re making good money as a freelancer but haven’t started planning for retirement yet, you’re leaving serious money on the table.
I’ve spent years working with thousands of freelancers through SolidGigs and my blog, and one thing that consistently surprises me is how many successful freelancers push retirement planning to the back burner. They’re crushing it with client work, building impressive portfolios, and even scaling their businesses – but their retirement accounts sit empty.
Today, we’re changing that. I’m going to break down exactly how you can build a rock-solid retirement plan as a freelancer, even if you’ve never saved a dime before.
Why Most Freelancers Struggle with Retirement Planning
Here’s what makes retirement planning so tricky for freelancers – and I know because I’ve been there myself:
The Feast-or-Famine Income Problem
One month you’re swimming in client work, the next you’re scraping by. How do you consistently save for retirement when your income looks like a roller coaster? (Quick tip: tools like SolidGigs can help stabilize your income by providing carefully curated freelance leads, making retirement planning much easier.)
No Corporate Safety Net
Gone are the days of employer-matched 401(k)s and pension plans. As a freelancer, every penny you put toward retirement comes straight from your pocket. That’s intimidating, but it also means you have complete control over your financial future.
Decision Paralysis
With so many retirement options out there – Traditional IRAs, Roth IRAs, Solo 401(k)s, and more – many freelancers freeze up and end up doing nothing. Let’s fix that today.
Your Best Retirement Options as a Freelancer
Solo 401(k): The Heavy Hitter
If you’re a high-earning freelancer with no full-time employees (besides maybe your spouse), the Solo 401(k) is your new best friend. Here’s why I love it:
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You can contribute both as the employer AND the employee, meaning you can stash away up to $66,000 in 2025 if you’re under 50 (or $73,500 if you’re 50+). That’s some serious tax-advantaged savings potential.
SEP IRA: Flexibility When You Need It
The SEP IRA is perfect for freelancers who have variable income years. You can contribute up to 25% of your net self-employment earnings, up to the same limits as a Solo 401(k). The best part? You can decide how much to contribute year by year based on your income.
Traditional or Roth IRA: Start Here
If you’re just getting started with retirement planning, a Traditional or Roth IRA is your easiest entry point. The contribution limits are lower ($7,000 in 2025 if you’re under 50), but they’re simple to set up and maintain.
The Smart Freelancer’s Retirement Strategy
Step 1: Build Your Financial Foundation
Before you dive into retirement accounts, make sure you have:
Emergency Fund
Aim for 6-12 months of living expenses. As a freelancer, this isn’t just nice to have – it’s essential for weathering slow periods and avoiding dipping into retirement savings.
Stable Income Stream
Use platforms like SolidGigs to ensure a steady flow of quality clients. This makes it much easier to commit to regular retirement contributions.
Basic Insurance Coverage
Health insurance and disability insurance protect your ability to earn and save. Don’t skip this step.
Step 2: Choose Your Retirement Accounts
Here’s my recommended approach based on your freelance income:
Under $50,000/year:
Start with a Roth IRA. Your tax rate is likely lower now than it will be in retirement, making this an ideal choice.
$50,000-$100,000/year:
Maximize a Traditional IRA and consider opening a Solo 401(k) for additional tax-advantaged savings.
Over $100,000/year:
Fully fund a Solo 401(k) as both employer and employee. Add a Roth IRA if you’re eligible for even more tax-advantaged growth.
Step 3: Automate Your Savings
Here’s a trick I learned the hard way: treat retirement savings like a non-negotiable business expense. Set up automatic transfers on your best-earning months, and make catching up a priority during leaner times.
Advanced Strategies for Serious Freelancers
Health Savings Account (HSA) Hack
If you qualify for a high-deductible health plan, an HSA offers triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses. After age 65, you can withdraw funds for any purpose, paying only regular income tax.
Real Estate as a Retirement Strategy
Consider investing in real estate to diversify your retirement portfolio. Rental income can provide a steady stream of passive income in retirement, and property appreciation offers another avenue for wealth building.
Making It Work with Variable Income
The Percentage Method
Instead of committing to a fixed monthly contribution, save a percentage of each client payment. This naturally adjusts your retirement savings to match your income fluctuations.
Strategic Timing
Plan larger retirement contributions during your historically high-earning months. For many freelancers, this means saving more during Q4 when clients are rushing to use their budgets.
Common Mistakes to Avoid
Waiting for the “Perfect” Time
There’s never a perfect time to start saving for retirement. The best time is now, even if you can only save a small amount.
Keeping All Your Eggs in One Basket
Don’t rely solely on one retirement vehicle. Diversify across different types of accounts and investments based on your risk tolerance and goals.
Forgetting About Taxes
Remember to account for self-employment tax and income tax in your retirement planning. Consider working with a tax professional to optimize your strategy.
Taking Action Today
Here’s your action plan for the next 24 hours:
1. Calculate Your Monthly Expenses
Know exactly what you need to save for a comfortable retirement.
2. Choose One Retirement Account to Open
Don’t get overwhelmed trying to optimize everything at once. Start with one account and build from there.
3. Set Up Automatic Contributions
Even if it’s just $100 a month, automatic savings will grow faster than you expect.
Remember, building a solid retirement plan as a freelancer isn’t just about securing your future – it’s about creating true freedom in your work today. When you know you’re taking care of your future self, you can focus more energy on growing your business and serving your clients.
The freelance life comes with enough uncertainty. Your retirement planning doesn’t have to be one of them. Take action today, and your future self will thank you.
One more thing...
You didn't start freelancing to spend hours every week searching through job boards. You started freelancing to do more work you enjoy! Here at SolidGigs, we want to help you spend less time hunting and more time doing work you love.
Our team of "Gig Hunters"—together with the power of A.I.—sends you high-quality leads every weekday on autopilot. You can learn more or sign up here. Happy Freelancing!
