How do people retire without a 401(k)?

A 401(k) is a convenient account that offers benefits like employer matching. However, it is not the only account you can use to save for retirement. You can invest in an IRA or Roth IRA to help you save by taking advantage of tax breaks for retirement investing.

Is there a better way to save for retirement than a 401(k)?

There are pros and cons to 401(k) plans. If your employer matches contributions, you should invest in your employer's plan until you earn your full match. Once you have done that, you may wish to look into other accounts, like a Roth or Traditional IRA, that can provide a broader choice of investment options.

Is $10,000 per month enough to retire comfortably?

For some retirees, $10,000 per month will be enough to retire comfortably. Others may need more income to cover their expenses, including healthcare costs, housing, taxes, and insurance. A good rule of thumb is to try to replace at least 80% of pre-retirement earnings with Social Security and other income sources as a retiree.

How much will $10,000 in a 401(k) be worth in 20 years?

If you have $10,000 in your 401(k) today, the value of that $10,000 in 20 years will depend on many factors, including what returns you earn. If you earn a 10% average annual return, you would end up with around $67,275.00.

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How to Save for Retirement Without a 401(k)

By Christy Bieber – Updated Mar 2, 2026 at 10:54 AM EST | Fact-checked by Margo Winton Parodi

Key Points

Investing in a Roth IRA allows you to take tax-free withdrawals after age 59 1/2.
A taxable brokerage account can supplement savings in retirement plans.
Self-employed individuals can open a solo 401(k) or SEP IRA to access higher contribution limits.

It may not be easy to save for retirement without a 401(k), but it's also not impossible.

According to a study by the Aspen Institute, 56 million Americans are faced with that very challenge because they have no access to a workplace 401(k), or the benefits it provides, including automatic enrollment and contributions, high contribution limits, or employer-matching funds.

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An infographic outlining four different ways to save money for retirement without a 401(k) account. — Image source: The Motley Fool.

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Roth IRA income limits for 2026

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FAQ about saving for retirement without a 401(k)

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About the Author

Christy Bieber is a contributing Motley Fool retirement and Social Security expert covering retirement planning, 401(k)s, IRAs, and other personal finance topics. Christy has written about finance since 2008 and previously taught business courses at Bryant & Stratton College. She holds a law degree from UCLA and a bachelor’s degree in English, media, and communication with a certificate in business management from the University of Rochester. In law school, she earned three CALI Awards for Excellence for the highest scores in civil procedure and contract law exams.

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