Retirement Planning for Freelancers by Country

Country-Specific Retirement Options

United States

US freelancers have access to some of the best retirement savings vehicles available to anyone:

• Solo 401(k): The gold standard for self-employed. Contribute up to $23,000 as employee (2024) + 25% of net SE income as employer, up to $69,000 total. Roth option available (after-tax contributions, tax-free withdrawals). Loans from your account are possible.
• SEP-IRA: Simpler to set up than Solo 401(k). Contribute up to 25% of net self-employment income, maximum $69,000. All contributions are pre-tax. No Roth option. Easy to open at any brokerage (Vanguard, Fidelity, Schwab).
• Traditional/Roth IRA: $7,000/year ($8,000 if 50+). Roth IRA has income limits ($161,000 single) but offers tax-free withdrawals in retirement. "Backdoor" Roth is possible for higher earners.
• HSA: Not technically retirement, but at 65+ you can withdraw for any purpose (taxed as income). Triple tax advantage makes it one of the most efficient savings vehicles.

Tax savings example: A freelancer earning $100K who contributes $23K to Solo 401(k) + $7K to IRA saves roughly $7,200 in federal tax (24% bracket) plus ~$4,590 in self-employment tax. Total tax savings: ~$11,800/year.

Germany

• Rurup-Rente (Basisrente): The main retirement vehicle for Freiberufler. Contributions deductible up to EUR 27,566 (2024, single). 100% tax-deductible since 2023. Payouts are taxed in retirement (gradually increasing to 100% by 2058). Cannot be withdrawn early or used as collateral. Choose between classic guaranteed annuity, fund-based, or ETF-based options.
• Private pension: No tax advantage for contributions, but low taxation on payouts (Ertragsanteil: only the growth portion is taxed). More flexible than Rurup.
• ETF Sparplan: Not tax-advantaged for contributions, but the EUR 1,000 Sparerpauschbetrag (saver's allowance) and favorable 25% flat tax (Abgeltungsteuer) on gains make this a good complement. Full flexibility for withdrawals.

Tax savings example: Freiberufler earning EUR 80K contributing EUR 27,566 to Rurup saves approximately EUR 11,578 in income tax + Soli (42% marginal rate).

United Kingdom

• SIPP (Self-Invested Personal Pension): Contribute up to GBP 60,000/year (or 100% of earnings). Government adds 20% basic rate relief automatically; higher-rate taxpayers claim the additional via Self Assessment. 25% tax-free lump sum at retirement (currently from age 55, rising to 57 in 2028). Investments grow tax-free inside the SIPP.
• ISA (Individual Savings Account): GBP 20,000/year. No tax on growth or withdrawals. Stocks and Shares ISA is a perfect complement to SIPP — fully flexible with no age restrictions.
• Lifetime ISA: GBP 4,000/year with 25% government bonus (max GBP 1,000/year bonus), but only available to under-40s and restricted to first home or retirement (60+).

Tax savings example: Higher-rate taxpayer contributing GBP 30,000 to SIPP saves GBP 12,000 in income tax (40% relief).

France

• PER (Plan d'Epargne Retraite): Replaced the old Madelin and PERP contracts. Contributions deductible from taxable income up to 10% of professional income (min EUR 4,399, max EUR 35,194 in 2024). Unused allowance from 3 prior years can be carried forward. Three compartments: individual voluntary, employer-sponsored, and mandatory contributions.
• Assurance Vie: Not technically retirement-only, but after 8 years of holding, gains up to EUR 4,600 (single) or EUR 9,200 (couple) per year are tax-free. Above that, a flat 7.5% rate applies (plus 17.2% social charges). Very popular long-term savings vehicle in France.

Netherlands

• Lijfrente (annuity pension): Tax-deductible contributions based on your "pension gap" (jaarruimte). The annual maximum is approximately EUR 15,000 depending on income and existing pension accrual. Reserveringsruimte allows catch-up contributions for the previous 7 years.
• FOR (Fiscale Oudedagsreserve): A book reserve on your balance sheet, up to 9.44% of profit (max EUR 9,632). Not an actual investment — it is a tax deferral mechanism that must be converted to a lijfrente when you close your business or retire.
• Banksparen: Tax-advantaged savings account specifically for retirement. Similar tax treatment to lijfrente but with bank-guaranteed returns.

How Much Should You Save?

Financial planners generally recommend saving 15-20% of gross income for retirement. For freelancers, who do not benefit from employer matching contributions, aim for the higher end:

• Minimum: 10% of gross income — this will provide a basic supplement to any state pension
• Target: 15-20% of gross income — on track for a comfortable retirement
• Aggressive: 25%+ of gross income — possible if you want to retire early (FIRE) or have started late

The compound growth calculator above shows why starting early matters so much. Contributing EUR 6,000/year for 25 years at 7% return produces EUR 405,000 — of which EUR 255,000 is pure investment growth. Starting just 10 years later with the same contributions would yield only EUR 160,000.

Key Principles for Freelancer Retirement

1. Automate it. Set up automatic monthly transfers to your retirement account on the day you get paid. Treat retirement savings like a bill, not an optional choice.
2. Maximize tax advantages first. Always fill up tax-advantaged accounts before using taxable accounts. The tax savings alone represent "free money."
3. Diversify across account types. Having both pre-tax (traditional/Rurup) and post-tax (Roth/ISA) accounts gives you flexibility in retirement to manage your tax bracket.
4. Keep costs low. Choose low-cost index funds or ETFs. A 1% fee difference compounds to hundreds of thousands over a career. Target total expense ratios under 0.3%.
5. Do not touch it. Early withdrawals from retirement accounts typically incur penalties and tax. Leave it to compound.

For more on reducing your tax burden now, see our Tax Optimization Strategies guide, or use the Retirement Tax Calculator to estimate your tax in retirement.