For many women over 50 who are self-employed, whether you are running a design studio, consulting practice, or boutique shop, “retirement” is not a hard stop. It is more of a shift. Maybe you will slow down, take on fewer clients, or pivot into passion projects. The beauty is that you get to choose.
The challenge is that without an employer-sponsored 401(k) or predictable paycheck, you have to be more intentional about building your safety net. The good news is that you can design a retirement that is both confident and uniquely yours.
Step One: Define Your Version of Retirement
Before we talk numbers, let’s talk vision. Do you want to travel for half the year? Mentor younger entrepreneurs? Sell your business and finally take that watercolor class?
Getting specific makes the planning real. Your “why” is what will keep you motivated to set aside money, even when business gets busy.
Step Two: Pick the Plan That Fits Your Life
SEP IRA
Think of this as the “simple but powerful” option. You can put away up to 25% of your net self-employment earnings, capped at $69,000 in 2024. Flexible contributions mean you can adjust based on how your year goes.
Solo 401(k)
This one lets you wear two hats, employee and employer, so you can often save more. You can contribute up to $23,500 in 2025 as the “employee” ($31,000 if you are 50 or older), plus 25% of your net self-employment income as the “employer.” You can also choose Roth or traditional.
IRA (Traditional or Roth)
Lower limits, $7,000 for 2025 or $8,000 if 50 or older, but still a solid addition to your mix.
Step Three: Treat Your Business as a Retirement Asset
Your client list, brand reputation, or proprietary processes may have real value. However, businesses are not guaranteed gold mines; markets shift and timing matters.
If you think you might sell or transition your business someday, start laying the groundwork now:
- Get a professional valuation at least five years before your planned exit.
- Think through succession: sale, buyout, or gradual wind-down.
- Keep building personal savings so you are not dependent on a single lump-sum sale.
Step Four: Build Your “Income Bridge”
Self-employed women do not usually go from paycheck to pension overnight. You may need a few years of creative cash flow to get you from your work years to Social Security or Medicare. That might look like:
- Working part-time or seasonally in your business.
- Using taxable savings to let retirement accounts grow a bit longer.
- Monetizing skills by teaching workshops, licensing your content, or renting out property.
Step Five: Do Not Forget Taxes and Healthcare
It is not the most glamorous part, but it is often the budget-buster:
- Taxes: Most retirement withdrawals are taxable. Build a withdrawal strategy so April does not bring surprises.
- Healthcare: If you retire before Medicare, budget realistically for private or marketplace plans. They can run higher than you expect.
Here’s the Bottom Line
You have built a business from scratch, so you can absolutely build the retirement you want. The key is starting now, even if you start small, and keeping your plan flexible so it grows with you.
If you are not sure which path to take, let’s sit down and map it out. You do not have to figure this out alone, and you do not have to give up the freedom you love to get the confidence you deserve.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.