Freelancers make up a significant portion of the workforce, contributing $1.5 trillion to the U.S. economy in 2025. However, freelancing requires taking complete responsibility for retirement planning without employer-sponsored benefits like matching contributions or steady paychecks. Starting early and setting aside savings is crucial to leverage the power of compound interest for long-term growth.

Time is a freelancer’s most valuable asset when it comes to retirement planning, as compounding interest can significantly impact savings growth. Setting clear savings goals, starting early, and automating contributions can help build a solid financial foundation. Freelancers have various retirement account options, such as Roth IRAs and SEP IRAs, with different contribution limits based on income and business structure.

Consistency in saving and investing is key for freelancers to secure their retirement future. Separating business income from personal spending, protecting against unexpected events with disability insurance, and seeking professional financial guidance can all contribute to a successful retirement plan. With discipline, a clear savings strategy, and smart financial habits, freelancers can build a retirement nest egg that supports their dreams and independence.

Read more at Yahoo Finance: Here Are 6 Steps to Build Your Nest Egg