How To Invest For Retirement As A Freelancer Or One Person Business

Let me ask you a question: does this sound familiar?

You’ve quit your job—or maybe you’re working toward that goal—and now you’re officially in the world of self-employment. You’re putting in the work, things are starting to pick up, but there’s this quiet voice that won’t go away. At first, you could barely hear it, but now it’s crystal clear:

“What am I going to do for retirement?”

This is a real question many self-employed people start asking themselves once they realize there’s no company-sponsored 401(k) waiting for them. And while employees have at least some system in place (even if it's flawed), we freelancers have to build our own. Not in the mood to read this? Watch our video below instead!

Why Freelancers Avoid Thinking About Retirement

Let’s keep it real: when you’re running a one-person business, life is hectic. You’re managing clients, income goes up and down, and you’re focused on keeping the lights on today—not 30 years from now.

Retirement planning doesn’t feel urgent. It feels like something you’ll deal with “someday.” But here's the truth: if you don’t start thinking about it now, you may end up working well into your 70s—not by choice, but because you didn’t prepare.

And nobody wants that.

So if you’re a freelancer or a self-employed person and this is hitting home, here are three steps you can take today to start investing for your future.

Step 1: Learn About Retirement Accounts for Self-Employed People

Before you can start investing, you need to know where your money should go.

As someone who’s self-employed, you actually have access to several retirement account options built specifically for you. These include:

• SEP IRA

• Solo 401(k)

• Traditional IRA

• Roth IRA

Each of these accounts has its own rules, limits, and tax advantages. The key is to understand what each one is, how it works, and which one fits best with your business and income situation.

If you don’t know the difference between them yet, that’s your homework. Start learning about these accounts now so you’re not flying blind later. For a detail break down on the pros and cons of each retirement account in regards to freelancers or those who are self employed, check out our free " Steal My Financial Blueprint PDF written by Elijah here.

Step 2: Set a Frequency for Contributions

Once you’ve picked a retirement account, the next step is deciding how often you’ll contribute to it.

Unlike an employee, where contributions are usually automated through payroll, you’ve got to create your own system. That means asking yourself:

• Will I contribute monthly?

• Every time I get paid?

• Once a quarter?

There’s no one-size-fits-all answer here. It depends on how consistent your income is. But whether it’s $50 a month or a percentage of each client payment, having a set rhythm makes sure you’re investing consistently, not just when you feel like it. 

Consistency is key. We broke down the best system for people who are a one person business to use in a previous article on investing. You can find that article by clicking here

Step 3: Don’t Forget About the Roth IRA

Even if you go with a SEP IRA or Solo 401(k), don’t sleep on the Roth IRA.

A Roth IRA is funded with after-tax money, and when you retire, you get to withdraw that money tax-free. That’s a big deal, especially if you expect to be in a higher tax bracket later in life.

Many people don’t even think about using a Roth IRA when they’re self-employed because they’re focused on other options. But it can be a solid piece of your retirement plan—especially when you’re first starting out and your income is still growing.

Final Thoughts

Planning for retirement as a freelancer isn’t optional—it’s essential. Even though there’s no employer setting things up for you, that doesn’t mean you’re out of luck. You just have to take a more active role.

Let’s recap:

1. Learn about self-employed retirement accounts (SEP IRA, Solo 401(k), Traditional IRA, Roth IRA)

2. Set a consistent contribution schedule

3. Don’t forget about the Roth IRA—it has unique long-term benefits

You don’t have to know everything today. Just take that first step. Get educated, set a rhythm, and start building your future.

You’ve already taken control of your career—now take control of your retirement too.

If you would like to know more about thriving as a one person business owner, consider joining The Self Made Business Academy where we support people making the transition from side hustle to a full time one person business. Click here to learn more!