Plan for retirement without a 401(k) match or employer plan. Calculate how much you need to save from variable income to retire comfortably.
Projected at 65
$3.9M
Required corpus
$1.2M
Status
On track
Freelancers don't get a 401(k) match, but they have powerful alternatives. A SEP-IRA lets you contribute up to 25% of net self-employment income (up to $69,000 in 2024). A Solo 401(k) allows even higher contributions if you're the only employee. Traditional and Roth IRAs add another $7,000 per year. The key is choosing accounts that match your tax situation and contributing consistently despite income fluctuations.
Freelance income is unpredictable, making fixed monthly retirement contributions challenging. A practical approach: save a percentage of each payment (15-25%) into a dedicated retirement fund rather than a fixed dollar amount. In high-earning months, contribute more. In lean months, contribute less — but always contribute something. This percentage-based approach naturally scales with your income.
Before maximizing retirement accounts, freelancers should maintain a larger emergency fund than traditional employees — typically 6-12 months of expenses instead of 3-6. This buffer prevents you from raiding retirement savings during dry spells. Once your emergency fund is solid, direct surplus income toward tax-advantaged retirement accounts first, then taxable investment accounts.
Required corpus = Annual retirement expenses ÷ 0.04 (the 4% rule)
This calculator estimates your required retirement savings using the 4% safe withdrawal rate. It projects your current savings forward with compound growth from monthly contributions and investment returns, then compares the projection to your required corpus. The chart shows whether you're on track to meet your retirement goal.
A 30-year-old earning $6,000/month, contributing $2,500/month to retirement, with $30,000 already saved at 7% return: by age 65, the portfolio projects to approximately $3.8 million. If retirement expenses are $4,000/month ($48,000/year), the required corpus is $1.2 million — well on track. But if they wait until 40 to start with the same savings, they'd only reach about $1.5 million.
Adjust the retirement expenses slider to reflect your expected lifestyle — not just your current expenses. Healthcare costs typically increase significantly in retirement.
If the projection shows a gap, try increasing your monthly contribution by even $200. Small increases early have outsized impacts due to decades of compounding.
Don't forget Social Security income. While this calculator shows the full amount you need saved, Social Security may cover 20-40% of retirement expenses for many Americans.
Run this calculator annually as your income and savings change. The earlier you spot a shortfall, the easier it is to correct.
If you're behind, focus on the three levers: increase contributions, delay retirement by a few years, or reduce planned retirement expenses.