No Employer-Sponsored Retirement Plan? Here’s What a Financial Advisor Suggests | Global News Avenue

for 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 for a company that doesn’t offer a 401(k) plan? In fact, nearly half of Americans don’t have access to a retirement plan at work, according to a study by AARP.

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

What I tell my clients

When it comes to retirement planning, it doesn’t matter what type of account you use, but rather your commitment to saving and strategically assigning each account a specific role and “lifespan.”

For high-income individuals and mid-career professionals, taxable (non-retirement) accounts are often undervalued and underutilized. This investment account does not have any contribution limits or rules about when funds can be distributed. A taxable account, like a retirement account, is not a specific type of investment; it is just a “wrapper” for any investment you want, such as stocks, bonds, ETF, mutual fundsETC.

Done properly, these taxable accounts function like a 401(k): You add money each month to a diversified portfolio that matches your future return needs, and then don’t withdraw the money until retirement. The flexibility inherent in these accounts is especially comforting for business owners whose income changes from year to year.

Additionally, you can combine these taxable investment contributions with Backdoor Roth IRA and a health savings account (HSA) Seek a comprehensive, long-term approach.

Although the contribution limits here are much smaller than those of a 401k ($7,000 per year for a Roth IRA, HSA $4,300(compared to $23,500 in 2025 if you’re single), and it provides a great way to put money into vehicles that will eventually be distributed tax-free later in life.

bottom line

While not having access to an employer-sponsored retirement plan can feel limiting, there are still many ways to save for retirement. By using taxable investment accounts and pairing them with backdoor Roth IRAs and HSAs, you can build a diversified and tax-efficient retirement plan. The point is that a 401(k) isn’t a panacea, it just requires more proactive and purposeful planning to achieve your goals.