How To Save For Retirement If Your Employer Does Not Offer A Plan

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Are you one of the many workers who don’t have access to a retirement plan through their employer? If so, you may be feeling concerned about your financial future. Fortunately, you can explore several other options to ensure you’re prepared for your golden years.

Introduction to Retirement Planning

Retirement planning is an essential aspect of personal finance. It’s the process of setting aside money for the future to maintain your standard of living after you retire. Unfortunately, most people assume that their employer will take care of their retirement, but if you don’t have access to a plan, you need to find other ways to save.

Alternative Ways to Save for Retirement

Traditional IRA

An individual retirement account (IRA) is a type of investment account that provides tax benefits for retirement savings. If your employer doesn’t offer a retirement plan, you can open a traditional IRA and contribute independently.

Roth IRA

A Roth IRA is another type of individual retirement account that provides tax benefits for retirement savings. The main difference between a traditional IRA and a Roth IRA is that contributions to a Roth IRA are made with after-tax dollars. In contrast, contributions to a traditional IRA are made with pre-tax dollars.

Employer-Sponsored IRA

You can still contribute to an IRA through payroll deduction if your employer doesn’t offer a retirement plan. An employer-sponsored IRA allows you to make regular contributions to your retirement savings without worrying about setting up automatic contributions on your own.

SEP IRA

A SEP IRA is a type of individual retirement account designed for self-employed individuals and small business owners. A SEP IRA can be a great way to save for retirement if you’re self-employed or run a small business.

Solo 401k

A solo 401k is a type of individual retirement account specifically designed for self-employed individuals and small business owners. Like a SEP IRA, a solo 401k allows you to save for retirement and receive tax benefits.

Deferred Annuities

Deferred annuities allow your money to grow without paying taxes until you take it out. Also, there is no limit to how much money you can save.

Next Steps

There are many options to consider when the employer-offered plan is not available. For example, investing in a self-directed IRA allows you to control your investments while opening an annuity adds a layer of safety. Discussing these and other retirement strategies with a qualified professional advisor can also help keep you on track, so you’ll be covered during your golden years. And if you’re looking for more peace of mind and a plan tailored specifically to your needs, why not request a free quote?

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Frequently Asked Questions

Can I still save for retirement if my employer doesn’t offer a plan?

Yes, you can save for retirement if your employer doesn’t offer a plan. However, there are several alternative options, such as traditional IRAs, Roth IRAs, employer-sponsored IRAs, SEP IRAs, and solo 401ks, that you can explore to ensure that you’re prepared for your golden years.

Are there any tax benefits for retirement savings if my employer doesn’t offer a plan?

Yes, there are tax benefits for retirement savings, even if your employer doesn’t offer a plan. Traditional IRAs, Roth IRAs, employer-sponsored IRAs, SEP IRAs, and solo 401ks all provide tax benefits for retirement savings.

How much can I contribute to an IRA if my employer doesn’t offer a plan?

Under 50, you can contribute up to $6,000 per year to an IRA. If you’re 50 or older, you can contribute up to $7,000 per year.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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