No Employer-Sponsored Retirement Plan? Here’s What a Financial Advisor Suggests

Contributing to an employer-sponsored retirement plan (ESP) is the most common and straightforward way to save for retirement. But what if you’re self-employed or work at a company that doesn’t offer a 401(k) plan? In fact, according to an AARP study, nearly half of Americans don’t have access to retirement plans at work.

The good news is, there’s no need to worry; plenty of retirement savings options are still available.

What I’m Telling My Clients

When it comes to retirement planning, the type of account you use isn’t as important as your commitment to saving and strategically assigning each account a specific role and “use-by” date. 

A taxable (non-retirement) account is often under-appreciated and underutilized for high-earning individuals and mid-career professionals. This investment account doesn’t have any contribution limit restrictions or rules about when you can distribute funds. A taxable account, like a retirement account, isn’t a specific type of investment; it’s merely the “wrapper” for whatever investments you want, such as stocks, bonds, ETFs, mutual funds, etc.

If done right, these taxable accounts can function much like a 401(k): You add money every month to a diversified portfolio that matches your future return needs, and then you don’t withdraw that money until you hit retirement. The flexibility inherent to these accounts can be especially comforting to a business owner whose income is variable year-to-year.

Furthermore, you can pair these taxable investment contributions with a Backdoor Roth IRA and a Health Saving Account (HSA) for a well-rounded, long-term approach.

While the contribution limits here are a lot smaller than a 401k ($7,000 annually for a Roth IRA and $4,300 for an HSA, if you’re single, as compared to $23,500 in 2025), it provides a nice way to put money into vehicles that will ultimately distribute tax-free later in life.

The Bottom Line

While not having access to an employer-sponsored retirement plan can feel limiting, there are still plenty of ways to save for retirement. By using taxable investment accounts and pairing them with a Backdoor Roth IRA and an HSA, you can build a diversified and tax-efficient retirement plan. The point is that a 401(k) is not the be-all-end-all—it just takes more proactive and intentional planning to achieve your goals.