How much should a gig worker save for retirement?

Financial experts generally recommend saving 10-15% of your gross income for retirement. For gig workers, this percentage might need to be higher to compensate for the lack of employer matching contributions. Aim to save as much as you can comfortably, prioritizing consistency.

Can I have both a Solo 401(k) and a Roth IRA?

Yes, you can contribute to both a Solo 401(k) (either pre-tax or Roth) and a Roth IRA simultaneously, provided you meet the income eligibility requirements for direct Roth IRA contributions. This allows for significant tax-advantaged savings and diversification of tax treatments in retirement.

What happens to my micro-pension if I switch jobs or stop gig work?

One of the main benefits of micro-pensions and self-directed retirement accounts (like IRAs and Solo 401(k)s) is their portability. The account belongs to you, not an employer. If you switch jobs or stop gig work, your funds remain in your account and continue to grow, regardless of your employment status.

Are there any government programs to help gig workers save for retirement?

While there isn't a specific "gig worker pension" program, gig workers are eligible for Social Security benefits based on their self-employment tax contributions. Additionally, the Saver's Credit (Retirement Savings Contributions Credit) can provide a tax credit for eligible low- and moderate-income individuals who contribute to retirement accounts.

How do I start a micro-pension if my income is very low?

Even with low income, starting small is key. Consider opening a Roth IRA and contributing as little as $50 a month. Utilize micro-investing apps that round up purchases or allow fractional share investing. As your income grows, gradually increase your contributions. The most important step is to start.

Micro-Pensions & Gig Worker Retirement Strategies | One…