For many, the phrase "retirement planning" conjures images of contributing to an employer-sponsored 401(k) or receiving steady paychecks from a full-time job. But what happens if your career path is non-traditional? Whether you’re a freelancer, part-time worker, or juggling multiple side hustles, building a retirement fund is still possible—with a little creativity and a solid plan.

It doesn’t matter if you don’t have access to traditional workplace benefits or a predictable paycheck. By taking the reins and prioritizing your future self, you can secure a retirement fund that works for your lifestyle. Here’s how to get started—even without full-time employment.

Why Retirement Planning Matters (Yes, Even for Freelancers)

Before we get into the how, it’s important to consider the why. Planning for retirement helps ensure your financial independence later in life. Without a steady income in retirement, you risk relying on minimal Social Security benefits, family support, or working far beyond your preferred “retirement age.”

The earlier you begin to save, the more you benefit from compounding growth. Small, consistent contributions made over years can grow exponentially without needing massive up-front investments. If you're in a non-traditional job, saving might feel tricky or uncertain—but taking even small steps now can pay off big down the road.

1. Open the Right Retirement Account

Even without an employer-sponsored retirement plan, you have plenty of options for growing and protecting your savings. Here are a few account types ideal for people in non-traditional employment:

Individual Retirement Account (IRA)

An IRA is an excellent option for self-employed individuals and gig workers. You can set one up yourself, and there are two main types to choose from:

  • Traditional IRA: Contributions are tax-deductible, and your investments grow tax-deferred. However, you’ll pay taxes on withdrawals in retirement.
  • Roth IRA: Contributions are made with after-tax dollars, but your investments grow tax-free, and withdrawals in retirement are also tax-free.

SEP IRA

If you’re self-employed and earning more, consider a SEP IRA (Simplified Employee Pension). These accounts allow higher contributions than traditional IRAs, up to 25% of your net earnings or $66,000 annually, whichever is lower. They’re a great choice if you’ve had a particularly strong income year and want to accelerate your savings.

Solo 401(k)

This option is tailor-made for self-employed individuals with no employees (or just one employee, like a spouse). Like a regular 401(k), you can contribute through salary deferrals and/or employer contributions (read: yourself acting as “employer”). Solo 401(k)s allow for high contribution limits, up to $66,000 annually for 2023 if you max out both components.

Health Savings Account (HSA)

If you’re eligible for a high-deductible health plan, an HSA is another vehicle for retirement savings. These accounts allow you to save pre-tax dollars for medical expenses, but unused funds roll over year after year, growing tax-free. Once you hit age 65, you can withdraw funds for non-medical expenses, effectively using the HSA as a retirement account.

2. Set a Budget for Saving

Without a reliable paycheck, saving for retirement can feel daunting. The key is to prioritize your savings, no matter how small the amount, and fit it into your budget. Here’s how to make it work:

Treat Savings Like an Expense

Think of your retirement savings like paying a monthly bill. Whether it’s $50, $100, or more, setting up an automated transfer into your retirement account ensures you’re consistently growing your fund. Over time, even small contributions add up.

For example:

  • Saving $50 a month starting at age 30, with a 7% annual return, could grow to over $57,000 by age 65.
  • Saving $100 a month? You’re looking at a retirement fund of $114,000!

Review and Adjust

Your income likely ebbs and flows when working freelance or part-time. During high-earning months, increase your contributions. When things slow down, maintain the habit of saving, even at a reduced level. Flexibility will keep you on track while adapting to your cash flow.

Track Your Spending

Use budgeting tools or simple spreadsheets to track what you’re earning and spending. By identifying areas where you can cut back (like subscriptions you forgot to cancel or pricey dinners out), you can free up more money to put toward retirement.

3. Build Retirement Contributions Into Side Hustles

Side hustles are an incredible way to boost your income and retirement savings. Here’s how to make them work harder for you:

  • Dedicate Extra Earnings: Commit a set percentage (like 10%-20%) of your side hustle income directly to retirement savings. For example, if you earn $500 from a weekend gig, transfer $50 to your IRA before doing anything else.
  • Invest Wisely: Your side hustle income doesn’t just have to sit in cash. Use it to buy low-cost index funds or exchange-traded funds (ETFs) through your retirement account. These options are affordable, easy to manage, and offer broad market exposure.
  • Track Deductions: If you're freelancing, remember to account for expenses when calculating your retirement contributions. Incurring lower taxable income can mean more space in your budget for saving.

4. Invest in Low-Cost Options

When every dollar counts, you don’t want high fees eating into your investments. Opt for low-cost options to grow your retirement fund efficiently:

  • Robo-Advisors like Betterment or Wealthfront automate investing at a low cost, typically charging around 0.25% annually.
  • Index Funds and ETFs offer broad market exposure with fees as low as 0.03%. Examples include the Vanguard Total Stock Market ETF or the Fidelity 500 Index Fund.

Even if you’re investing with modest contributions, minimizing fees makes a long-term difference.

5. Balance Current Needs With Future Goals

Saving for retirement while managing day-to-day expenses can feel like a juggling act. Prioritize finding balance:

  • Build an Emergency Fund: Before maxing out retirement savings, ensure you have three to six months’ worth of expenses saved. This safety cushion helps you avoid cashing out investments during an emergency.
  • Pay Down Debt: High-interest debt can be an obstacle to savings. Focus on paying off credit cards or personal loans before ramping up retirement contributions. Lower-interest debt, like student loans, can be managed alongside saving.
  • Avoid Lifestyle Creep: Freelancers and gig workers often see income fluctuate. When you have a big earning month, resist the urge to splurge or increase your expenses. Instead, funnel those extra dollars toward retirement or financial goals.

Consistency Is the Key

Building a retirement fund without full-time employment takes intention and steady effort, but it’s entirely possible. Don’t wait for the perfect time or perfect income level to start saving. The best time to begin is now, with what you have.