How Couples Can Plan for Retirement Without Employer-Sponsored 401(k)s

What to Do If You or Your Significant Other’s Job Doesn’t Offer a 401(k)

Retirement planning can feel daunting, especially if you or your significant other don’t have access to a 401(k) through work. But don’t worry—there are plenty of alternative ways to save and build your financial future. In this article, we’ll explore actionable steps you can take to ensure you and your partner are on track for a secure retirement.

1. Open an Individual Retirement Account (IRA)

‍IRAs are a great alternative to 401(k)s and can be opened independently of your employer. There are two main types:

• Traditional IRA: Contributions may be tax-deductible, and earnings grow tax-deferred.
• Roth IRA: Contributions are made with after-tax dollars, but withdrawals in retirement are tax-free.

The 2025 contribution limit for IRAs is $7,000 annually ($8,000 if you’re 50 or older).

2. Consider a Health Savings Account (HSA)

‍If you have a high-deductible health plan, an HSA can double as a retirement savings tool. Contributions are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are also tax-free. After age 65, you can use HSA funds for any purpose without penalties.

3. Look Into a SEP IRA or Solo 401(k)

‍If you or your partner are self-employed, a SEP IRA or Solo 401(k) offers higher contribution limits than traditional IRAs. These plans are excellent options for freelancers, contractors, or business owners.

4. Automate Savings With a High-Yield Savings Account

‍While not a retirement-specific account, a high-yield savings account can be a good place to stash emergency or short-term savings while earning higher interest than a regular savings account.

5. Invest in Taxable Brokerage Accounts

‍For long-term growth, consider opening a taxable brokerage account. While these don’t offer tax advantages, they provide flexibility in how and when you can use the funds.

6. Prioritize Employer Benefits If Available

‍If your partner’s job offers a 401(k), max out their contributions and take advantage of employer matching. Treat it as a joint effort to build retirement savings.

7. Explore State-Sponsored Retirement Plans

‍Some states offer retirement savings plans for workers without employer-sponsored options. Research your state’s program to see if it’s a good fit.

8. Set Clear Financial Goals Together

‍Sit down as a couple and discuss your retirement goals. Determine how much you’ll need to save, what accounts you’ll use, and how to budget for these contributions.

9. Consult a Financial Advisor

‍A financial advisor can help you create a customized retirement plan based on your unique situation. They can provide guidance on investment strategies, tax planning, and more.