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We hear it all the time: Don’t put off saving for retirement. Contribute as much as possible — starting as early as possible — and you’ll dramatically improve your chances of financial security in the future. And many people seem to be getting the hint. Workers with 401(k)s at both Fidelity Investments and Vanguard are contributing record shares of their paychecks, new data shows. At Fidelity, 401(k) participants saved 14.3% in the first quarter (including employer matches,) coming closer than ever to the company’s recommended 15% target. There’s just one glaring problem: Not everyone has access to a 401(k). In fact, an estimated 47% of private sector workers in the U.S. — 59 million people — lacked access to a workplace retirement plan of any kind in 2023, according to a March report from Georgetown University’s Center for Retirement Initiatives. And saving for retirement can feel a lot more challenging if you’re doing it DIY-style with an IRA or similar type of account. Last year 91% of people with access to an employer-sponsored plan like a 401(k) were saving for retirement, compared to 56% of those without access, according to a Transamerica Center for Retirement Studies survey. So what? Workplace accounts can provide a big boost when it comes to saving for retirement, especially when your company matches some of your contributions. But they’re not the only game in town. Don’t let your work situation keep you from planning for your future. If your job doesn’t offer a retirement plan or you’re self-employed, consider these other popular ways to build a nest egg:• Use an IRA. If you or your spouse don’t have access to a workplace plan, the money you put into a traditional IRA can lower your taxable income and potentially grow on a tax-deferred basis in much the same way as it would in a 401(k). You’re not allowed to save as much — in 2025, the limit is $7,000 in an IRA vs. $23,500 in a 401(k) unless you’re over 50 — so the earlier you start, the better. If you’re income-eligible, there are also Roth IRAs, where you pay taxes on the money upfront but then it can grow tax-free.
• Set up your own workplace retirement plan if you’re self-employed. If you’re a business owner, freelancer, independent contractor, or gig worker, see if you’re eligible to open a solo 401(k), SIMPLE IRA or SEP IRA — some of which may let you save even more than if you worked for someone else.
• Save in a plain ‘ol brokerage account: You won’t get any tax breaks from it, but the lack of red tape can be freeing otherwise. There are no income limits and no caps on how much you can invest.
• Set up a 401(k)-like direct deposit: You can have a portion of every paycheck go to retirement even if you don’t have a 401(k). Research shows that people are 15 times more likely to save for retirement if money is deducted automatically from their paychecks, according to Pew Charitable Trusts.
• Use a roboadvisor: Many brokerage firms — including SoFi — give you a choice of how hands on you want to be with an IRA or brokerage account. A roboadviser picks out and manages your investments for you based on your retirement goals, so all you have to worry about is funding your account.
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Born into Crisis, Gen Z Is Saving for Retirement Like No Other Generation (The Guardian) Millions of Americans Are Falling Behind on Their Retirement Goals (The Pew Charitable Trusts) 7 Ways to Start Saving for Retirement (SoFi)Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
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