How retirement saving works if you're a gig worker or don't have a job with benefits

More than 25% of private-sector workers don't have access to a retirement plan through their job, but they can still save.

Roth or traditional IRAs

An IRA is a good place to start. You open it yourself, and you can contribute up to $7,500, or $8,600 if you're 50 or older.

For many gig workers, a Roth IRA is a better first choice. You can take out your contributions at any time without taxes or penalties, which matters if your income is unpredictable.

Your state's auto-IRA program

Currently, 15 states have active programs that help workers without a workplace plan save automatically, and more were on the way. Examples include CalSavers in California, OregonSaves, and Illinois Secure Choice.

Here's how they usually work: Employers without a retirement plan have to sign workers up, and a small percentage of each paycheck goes into a Roth IRA in the worker's name. You can change the amount or opt out. In some states, self-employed and gig workers can sign up on their own.

Check your state's treasurer or retirement savings office to see if there’s a program available to you.

SEP IRAs

A SEP IRA is designed for self-employed people and small business owners. It's easy to set up and has higher contribution limits than a regular IRA. You can generally contribute up to 20% of your net self-employment earnings. There's no requirement to contribute every year, either, which helps when income fluctuates.

A solo 401(k)

If you're self-employed with no employees other than a spouse, a solo 401(k) lets you contribute as both the "employee" and the "employer." That can mean saving more than a SEP IRA at lower income levels. Some solo 401(k)s also offer a Roth option.

The trade-off is that you need to do more paperwork, especially once your account grows past $250,000.

How to save when your income goes up and down

• Save a percentage, not a fixed amount. Put aside 5% or 10% of every payout, whatever it is. Good weeks cover slow ones.
• Separate your money. Use one account for taxes, one for bills, and one for savings. When a payment comes in, divide it right away.
• Skip manual work wherever possible. Even a small automatic transfer each week keeps you on track.
• Top up after strong months. When you have a great month, send an extra chunk to your IRA.

Don't forget Social Security

When you report your gig and freelance income and pay self-employment tax, you earn Social Security credits. Those credits count toward retirement and disability benefits. If you don't report your income, you could end up with lower benefits, or none.

Tax help for savers

If your income isn’t great, you may qualify for the Saver's Credit, worth up to $1,000 off your taxes. Starting with 2027 contributions, it will be replaced by the Saver's Match, which deposits up to $1,000 a year directly into your retirement account.