How to save for retirement without a 401(k): Smart alternatives that work

A 401(k) is not your only choice to save for retirement. Although 401(k) plans simplify saving for retirement, not all Americans have access to the retirement planning tool. Nearly 56 million workers lack access to employer-sponsored 401(k) plans, according to Pew Charitable Trusts.  

If you’re wondering whether you can retire without a 401(k), the answer is yes—but it requires a clear strategy and the right mix of retirement accounts. 

Fortunately, there are several 401(k) alternatives that make it possible to build long-term wealth. This guide explains how to save for retirement without a 401(k), the best retirement options other than a 401(k), and how to create a sustainable plan for your future. 

Step 1: Understand your retirement needs 

Regardless of whether you have access to a 401(k), determining your retirement needs is vital to effective saving. Having this knowledge can help guide your actions. 

Estimate how much you’ll need in retirement 

Calculating how much you need in retirement is the foundation of any retirement savings plan. Most experts recommend that you need roughly 80% of your working income in retirement. This means saving at least ten times your annual salary if you plan to retire at 67, according to Fidelity. 

Every person’s situation is different. Where you plan to live and your ability to reduce unnecessary expenses in retirement are key factors in determining what you will need for a comfortable retirement life. Healthcare costs also play a major role as you age. Using a retirement calculator can help you estimate how much you need to retire comfortably based on your income, savings rate, and expected retirement age. 

Know your income sources beyond a 401(k) 

A 401(k) isn’t the only way to build retirement income. When saving for retirement without a 401(k), it’s important to identify alternative income streams. For workers considering alternatives to 401(k) plans, IRAs can be a valuable source of income. You may even own rental properties or offer consulting services in retirement. 

“Wealth can be built in multiple ways. Historically, in the U.S. economy, there have been three primary paths to building wealth: saving steadily into stocks and bonds, buying real estate, and starting a business,” says James Hargrave, CFP®, CLU®, founder of Pillar Financial Planning. Identify which mix is best for you and pursue it, as multiple income streams reduce risk and increase stability. 

When you retire, it impacts how much you will receive each month. However, it may be wise to treat Social Security as supplemental income rather than your primary retirement strategy. 

Set a savings goal and timeline 

After calculating your retirement number, beginning to save consistently is paramount. Work backwards from your desired retirement age to determine targets as you progress in your career. Then, set a monthly savings goal that aligns with your income and budget. Avoid delaying your savings, as time in the market plays a critical role in long-term growth. 

“I always encounter people who like waiting for the perfect time. It’s okay to be thoughtful about finances, but that shouldn’t delay saving until you make more money,” says Chris Heerlein, investment advisor representative and CEO of REAP Financial. If you don’t have a lot to begin with, start small. Even contributing $100 or $200 per month can build meaningful momentum over time. 

Step 2: Explore the best 401(k) alternatives 

A 401(k) is only one tool you can use to save for retirement. If you don’t have access to one, there are several types of retirement accounts and proven 401(k) alternatives that can help you build long-term wealth. 

Traditional and Roth IRAs 

Traditional and Roth IRAs are two of the best ways to save for retirement without a 401(k). The retirement savings accounts differ in two key ways: how you’re taxed and when you can access the funds. 

Traditional IRAs offer upfront tax deductions, while Roth IRAs provide tax-free withdrawals. You can also withdraw Roth contributions in case of an emergency. Your income, tax brackets, and timeline determine which option is best for you.  

“Typically, those who are in a higher tax bracket and expect to be in a lower bracket in retirement often benefit from a pre-tax contribution into a Traditional IRA. For those who expect to be in a higher tax bracket in retirement, we often look at a Roth IRA and/or backdoor Roth contribution,” adds Hargrave. 

Savers can use both to get tax diversification in retirement. You can contribute up to $7,500 to either account in 2026, with those 50 and older able to contribute an additional $1,100. 

Solo 401(k) 

If you’re self-employed or have freelance income, a solo 401(k) can be one of the best 401(k) alternatives available. This account allows you to contribute both as an employee and as an employer, which can significantly increase your annual contribution limits compared to an IRA.  

Solo 401(k)s offer the same tax advantages as traditional employer-sponsored plans, including pretax or Roth contribution options. For high earners with self-employment income, this can be one of the most powerful ways to save for retirement without relying on a traditional workplace plan. 

SEP IRA and SIMPLE IRA 

Many online brokerages offer both SEP IRA and SIMPLE IRA retirement accounts. SEPs are best suited for self-employed individuals or small businesses, and only the employer can contribute. SIMPLEs are for firms with 100 or fewer employees, and both employees and employers can contribute. SEPs allow for up to $72,000 contributions in 2026. 

SIMPLE IRAs allow for up to $17,000 in employee contributions in 2026, along with a catch-up contribution of $4,000 for individuals over 50. 

Health Savings Accounts (HSAs) 

It’s important not to overlook healthcare costs in retirement planning. The average 65-year-old retiring in 2025 can expect to spend $172,500 on such costs during retirement, according to Fidelity. Health savings accounts (HSAs) are one of the more flexible retirement options other than 401 (k) plans. 

You must be enrolled in a high-deductible health plan to use HSAs, and the accounts can double as long-term retirement accounts when you invest the funds. HSAs are powerful resources as they offer triple tax benefits: deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses. This makes HSAs a suitable tool for savers who want flexibility. Single individuals can contribute $4,400 in 2026, and families can contribute $8,750, with people 55 and older able to contribute an additional $1,000. 

Taxable brokerage accounts 

Although not tax-advantaged, taxable brokerage accounts can be a suitable alternative to 401(k) plans for people who have already maxed out IRAs and HSAs. Brokerage accounts allow for unlimited contributions and liquidity with no withdrawal penalties. 

The one drawback is that there are no tax benefits. “You may opt to open a regular brokerage account for extra savings. Even though it’s taxable, it still allows you to grow your money in the long haul,” notes Heerlein. It’s wise to research the best brokerages to identify the most economical one that offers a wealth of tools. 

Annuities and CDs 

Annuities and CDs can be relatively helpful for retirement needs, but only for particular individuals. CDs rarely keep pace with inflation, but they could be a good supplement for those nearing retirement. Annuities offer guaranteed income but can limit long-term growth. 

“One big mistake is using a fixed annuity or a whole life insurance product for long-term investing. While both offer some great features, providing long-term growth is a particular weakness,” notes Hargrave. 

Step 3: Build a diversified retirement portfolio 

Diversification is essential for creating a retirement portfolio that doesn’t deplete its resources. Using the right accounts can help savers balance risk while maximizing returns. 

Mix tax-deferred and tax-free accounts 

Diversification is a long-held, powerful component of wise investing, but tax diversification can be just as beneficial. For example, traditional IRAs force people to take required minimum distributions at 73, regardless of whether they need the money. RMDs are taxable income, which can pose problems. 

Alternatively, if you expect to be in a lower tax bracket in retirement, a traditional IRA may result in lower lifetime taxes than a Roth. Balancing the two can help people be more strategic during retirement. 

Hargrave notes that creative thinking is key to finding the right balance. “Often, we look to utilize an IRA and a taxable account together over time as one builds wealth, giving you flexibility across different tax treatments,” he adds. 

Balance risk with age and goals 

A key feature of employer-sponsored retirement plans is that they often include tools to rebalance portfolios as your needs change. Saving for retirement without a 401(k) puts the responsibility on the individual to make such changes. 

If you’re actively managing your portfolio, this may not be difficult, but for those who are uncomfortable with investing, it can create challenges. Investing in broad-based index funds or using a robo-advisor can help simplify portfolio management.  

“They’re [robo-advisors] very handy if rebalancing or picking funds yourself is something you’re not fond of doing. Based on my experience, they’re not perfect, but they can guide you and help you become more consistent,” says Heerlein. Many online brokerages offer resources you can use to construct a portfolio based on your age, goals, and risks if you prefer to self-manage your portfolio. 

Use real estate or REITs for income diversification 

Real estate can be a powerful alternative for retirement savings without 401(k) access for individuals who want a tangible asset that produces steady income. Real estate is also a good hedge against inflation and provides diversification against stock investments. 

Unfortunately, real estate is illiquid and may be too time-consuming for people who don’t want to personally manage properties. Real estate investment trusts (REITs) are a legitimate solution for people who want a hands-off approach to investing in real estate. Most online brokerages allow investors to purchase REITs within IRAs and other retirement accounts. 

Step 4: Take action and stay consistent 

It is possible to save for retirement without 401(k) access, but it requires discipline and consistency. No matter which 401(k) alternative you choose, long-term success depends on steady contributions and regular oversight. Here’s how to achieve your goals. 

Automate your contributions 

Employer-sponsored 401(k) plans make it easy to save for retirement. Plans traditionally automate your contributions and allow for annual increases. For those trying to learn how to save for retirement without a 401(k), they must do it manually. 

Most online brokerages allow investors to automate transfers into their accounts. If you don’t have a lot to start with, it’s okay to start small. The overarching goal is to save, not to wait until you have “enough” to invest. Discipline is like a muscle; building it makes you stronger. 

Review and adjust annually 

Rebalancing is another helpful feature that people without 401(k) plans must handle on their own. Some investors enjoy the practice, but it’s vital to do it annually to make sure your portfolio remains aligned with your goals and risk tolerance. 

For those who dislike rebalancing or find it burdensome, target-date retirement funds can be a suitable solution. “Target-date retirement funds are one of the simplest ways to build a diversified portfolio. You select a retirement year, and the fund automatically adjusts over time,” notes Hargrave. You can find target-date funds at most online brokerages. 

Work with a financial advisor if needed 

Retirement planning can be challenging, even for people with generous 401(k) plans. A good financial advisor can help people enhance their savings to avoid costly mistakes and optimize taxes. This can be valuable if your finances are complex or if you have ambitious goals, as advisors can create a personalized action plan tailored to your situation. 

Not all financial advisors are equal. It’s often best to select a fee-only advisor to help with your retirement plans. Reputable advisors are clear about their fee structure and aren’t compensated through commissions, which helps avoid conflicts of interest. 

Final thoughts: Can you retire without a 401(k)? 

Saving for retirement is a marathon, not a sprint. Although 401(k) plans are a powerful tool, not having access to one doesn’t make it impossible to achieve your goals. You can retire without a 401(k) if you build a disciplined strategy using the right retirement accounts and consistent contributions.  

Consistent saving and action, paired with using several of the best alternatives to 401(k), you can have the life you want in retirement. Whether you choose IRAs, a solo 401(k), HSAs or taxable brokerage accounts, the key is selecting the retirement options other than a 401(k) that fit your income, tax situation, and long-term goals. 

Starting early, regardless of the amount, is the best way to build wealth for retirement. Time, diversification, and steady investing matter more than access to any single workplace plan.