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Retirement Planning for Self-Employed People

Self-employed people have no automatic retirement savings. Learn the best account options in the US and EU with strategies for variable income.

By FlowFund TeamJune 28, 20263 min read

No Automatic Retirement: Plan It Yourself

Every retirement dollar must be deliberately set aside. Freelancers who build wealth do this; those who do not work until they cannot.

US Options

Solo 401(k): Contribute as employee ($23,000 in 2024) and employer (up to 25% of net income). Total potential: $66,000-69,000/year.
SEP-IRA: Simpler setup. Up to 25% net income, max $66,000. All pre-tax.
Roth IRA: $7,000/year after-tax. Tax-free growth and withdrawals.

EU Options

Germany: Rentenversicherung voluntary contributions.
Netherlands: lijfrente.
UK: SIPP with 60,000 GBP limit and 25% tax relief.

The Rule

15% of gross income toward retirement. At $80,000 income that is $12,000/year. Enough to build substantial wealth over 20-30 years.

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