Don’t Have a Full-Time Job? 4 Ways You Should Adjust Your Retirement Planning
Written by
Josephine Nesbit
Edited by
Jenna Klaverweiden
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If you’re self-employed or working part time, your path to retirement likely looks different than the plan of someone in a traditional 9-to-5. Without built-in benefits or an employer-sponsored retirement plan, it’s up to you to create your own safety net.
These four steps can help you build a stronger foundation and plan with more confidence, no matter how unconventional your workweek looks.
Also see three essential tips for a winning retirement savings plan.
Contribute to a Retirement Account
“With ‘traditional’ retirement planning, typically there is a built-in retirement savings vehicle and automated savings in the form of a 401(k),” Christine Lam, CFP, ChSNC, investment advisor representative at Financial Investment Team, wrote in an email.
Not all employers offer 401(k) options to part-time employees, but Lam pointed out that the rules around this have changed due to the Secure 2.0 Act.
“If an employer does not offer 401(k) benefits to part-time employees, then it is the responsibility of the individual to set aside money for retirement,” Lam explained. That means opening up a retirement savings account and making regular contributions.
According to Lam, traditional IRAs or Roth IRAs offer the most flexibility for freelancers and self-employed individuals, as the only requirement is for individuals to have earned income. Other options include a solo 401(k) or SEP IRA.
“It is equally important to set up an automatic savings schedule to max out these plans since deferrals are not being deducted automatically from a paycheck as a traditional 401(k) plan would do,” Lam advised.
Budget for Insurance
In most cases, full-time employees also have access to insurance benefits, including health insurance, disability and life insurance.
“As a part-time worker, you may need to budget for private health insurance (which can be costly) and secure your own disability and life insurance policies, which are an added expenditure,” Lam explained.
Because these costs can add up, she recommended having a detailed budget of monthly expenses.
Plan for Future Income and Expenses
As of May 2025, the average monthly benefit amount for retired workers was $2,002, but working part time can result in lower lifetime earnings, and ultimately, a smaller Social Security check in retirement.
“This is because Social Security looks at your past 35 years of working history and pulls the highest earning years to determine your future benefit,” Lam wrote. “Working part-time could result in lower earnings, which will in turn lower future Social Security benefits.”
That means even if you’re consistently working, part-time income may not be enough to build up the earnings history needed to maximize your benefits later on.
“Many Americans rely on Social Security to replace around 40% of their income in retirement years,” Lam continued. “So having a detailed financial plan that factors in future income and expenses prior to making the retirement decision will be especially important for long-term part-time employees.”
Consider When You Want To Retire
For part-time workers, retirement isn’t always tied to a specific age or date. Without the structure of a full-time job, you may not feel the same urgency or burnout that often pushes people to retire.
“Thus, they can potentially want to work longer, or incorporate a semi-retired lifestyle or delay retirement plans altogether, which can help phase them into retirement,” Lam wrote.
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