Adjust retirement planning for part-time work or self-employment, consider private insurance, detailed budget

From Yahoo Finance: 2025-06-30 12:32:00

If you’re self-employed or work part-time, planning for retirement can be different. Without employer benefits, it’s up to you to create your safety net. Christine Lam recommends opening a retirement savings account and contributing regularly. Traditional or Roth IRAs offer flexibility for freelancers, while a solo 401(k) or SEP IRA are other options.

Full-time employees typically have access to insurance benefits, but part-time workers may need to budget for private health insurance, disability, and life insurance. Part-time work can result in lower earnings, affecting Social Security benefits. Having a detailed budget is crucial.

Working part-time may result in lower lifetime earnings and a smaller Social Security check. Social Security looks at the past 35 years of working history to determine benefits. Part-time income may not be enough to maximize benefits. A detailed financial plan is crucial for long-term part-time employees.

Retirement for part-time workers isn’t tied to a specific age. Without the structure of a full-time job, there may not be a sense of urgency to retire. Some may choose to work longer, incorporate a semi-retired lifestyle, or delay retirement plans, phasing into retirement gradually.

Read more: Don’t Have a Full-Time Job? 4 Ways You Should Adjust Your Retirement Planning