Best Retirement Plans for Part-Time Workers in 2025

The modern workforce is changing. More Americans than ever are working part-time, whether by choice or necessity. Some are balancing family and work, others are pursuing education, and many are piecing together multiple jobs to make ends meet. While part-time work offers flexibility and freedom, it also presents unique challenges, especially for retirement savings.

For decades, retirement planning was built around the traditional full-time job with benefits. However, as the gig economy grows and flexible work becomes the norm, part-time workers must take a more proactive approach to securing their financial future. The good news? There are more options and resources than ever for part-timers to build a solid retirement nest egg. Here’s what you need to know to get started in 2025.

Can Part-Time Workers Access Employer Retirement Plans?

SECURE Act and SECURE 2.0 Act Changes

One of the biggest barriers for part-time workers has been access to employer-sponsored retirement plans. Traditionally, many employers required at least 1,000 hours per year to qualify for a 401(k), leaving millions of part-timers on the sidelines.

But recent legislation has changed the landscape. The SECURE Act and its follow-up, the SECURE 2.0 Act, have made it easier for part-time employees to participate in workplace retirement plans. As of 2025, if you work at least 500 hours per year for two (soon to be three) consecutive years, your employer must allow you to join the company’s 401(k) plan. This is a game-changer for anyone working reduced hours, giving many part-timers access to the same powerful savings tools as their full-time colleagues.

What If Your Employer Doesn’t Offer a Plan?

Not all employers must offer a retirement plan; some, particularly small businesses and startups, may not have one. If your employer doesn’t offer a 401(k) or similar plan, don’t despair. You still have many ways to save for retirement, from IRAs to state-sponsored programs. The key is to understand your rights and take the initiative to start saving, even if your employer isn’t involved.

Top Retirement Plan Options for Part-Time Workers

Employer-Sponsored 401(k) and 403(b) Plans

If you’re eligible for your employer’s 401(k) or 403(b) plan, utilize it. These plans offer high contribution limits, the potential for employer matching, and powerful tax advantages.

• Contribution Limits: For 2025, you can contribute up to $23,000 to a 401(k), or $30,500 if you’re age 50 or older and eligible for catch-up contributions.
• Roth vs. Traditional: Many plans offer options for traditional (pre-tax) and Roth (after-tax). Traditional contributions lower your taxable income now, while Roth contributions grow tax-free for retirement.
• Employer Match: If your employer offers a match, contribute at least enough to get the full match. It’s essentially free money for your future.

Traditional and Roth IRAs

If you don’t have access to a workplace plan or want to save more, an Individual Retirement Account (IRA) is a great option.

• Contribution Limits: For 2025, you can contribute up to $7,000 to an IRA ($8,000 if you’re 50+).
• Traditional IRA: Contributions may be tax-deductible, and withdrawals in retirement are taxed as income.
• Roth IRA: Contributions are after-tax, but withdrawals in retirement are tax-free. Roth IRAs are especially valuable for younger workers or those expecting to be in a higher tax bracket later.
• Flexibility: IRAs are easy to open at any bank or brokerage, and you can choose from a wide range of investments.

SIMPLE IRA and SEP IRA

Some part-time workers, especially freelancers or those with side businesses, may be eligible for SIMPLE or SEP IRAs.

• SIMPLE IRA: Designed for small businesses and self-employed individuals, SIMPLE IRAs have higher contribution limits than traditional IRAs ($16,000 in 2025, plus $3,500 catch-up).
• SEP IRA: SEP IRAs are funded entirely by employer contributions, up to 25% of income or $69,000 in 2025. You can set up your own SEP IRA if you have freelance income.
• Pros and Cons: These plans are easy to set up and administer, but may not be available to all part-time workers.

State-Sponsored Auto-IRA Programs

Many states now offer automatic IRA (auto-IRA) programs for workers whose employers don’t have a retirement plan. Examples include CalSavers (California), OregonSaves (Oregon), and similar programs in Illinois, Connecticut, and more.

• How They Work: Employers facilitate payroll deductions into a state-sponsored Roth IRA. Participation is usually automatic, but you can opt out.
• For Part-Timers and Gig Workers: These programs are designed to be inclusive, with no minimum hours or income required. They’re a great way for part-timers to start saving with minimal effort.

Health Savings Accounts (HSAs) for Retirement

An HSA can double as a retirement savings tool if you have a high-deductible health plan.

• Triple Tax Advantage: Contributions are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are tax-free.
• Retirement Flexibility: After age 65, you can use HSA funds for any purpose (non-medical withdrawals are taxed as income, but no penalty).
• Supplemental Savings: HSAs are a powerful way to boost your retirement savings, especially if you expect healthcare costs in retirement.

How to Choose the Right Retirement Plan as a Part-Time Worker

Key Factors to Consider

Choosing the best plan depends on your specific situation:

• Income Level: Higher earners may benefit from 401(k)s or SEP IRAs, while lower earners may find IRAs or state auto-IRAs more accessible.
• Job Stability: If your hours or employers change frequently, prioritize portable plans like IRAs.
• Employer Plan Availability: Always take advantage of employer matches if offered.
• Tax Treatment: Decide whether you want a tax break now (traditional plans) or tax-free withdrawals later (Roth options).
• Personal Savings Goals: Set realistic targets based on your lifestyle and retirement dreams.

Combining Multiple Accounts

You’re not limited to just one plan. Many part-time workers contribute to a 401(k) at one job, a Roth IRA on their own, and even an HSA if eligible. Combining accounts can help you maximize your savings and diversify your tax situation in retirement.

Overcoming Barriers to Saving for Retirement

Irregular Income and Small Contributions

Part-time work often means variable paychecks, making it hard to save consistently. But even small, regular contributions add up over time.

• Automate Savings: Set up automatic transfers to your IRA or savings account, even if it’s just $20 a week.
• Start Small, Build Up: Don’t let the “ideal” contribution amount stop you from starting. Increase your savings as your income grows.
• Budgeting Tools: Use apps or spreadsheets to track your income and expenses, making finding extra dollars to save easier.

Access to Financial Education and Resources

Financial literacy is key for part-time workers, who often have to navigate retirement planning independently.

• Seek Out Resources: Many states, nonprofits, and financial institutions offer free retirement planning workshops and online guides.
• Digital Tools: Apps like Beem can help you set goals, track progress, and stay motivated.
• Ask Questions: Don’t hesitate to ask your employer, bank, or financial advisor for help understanding your options.

How Beem Can Help Part-Time Workers Build Retirement Security

Beem is designed to make retirement planning easier, especially for workers with non-traditional schedules and income streams.

• Budget Planner: Track your contributions, set savings goals, and visualize your progress toward retirement.
• Reminders: Get alerts for IRA contribution deadlines, plan eligibility changes, and important tax dates.
• Motivation: See how even small, consistent savings can grow over time, helping you stay on track.
• Holistic Planning: Integrate all your accounts, including 401(k)s, IRAs, HSAs, and more, for a complete retirement picture.

With Beem, you can take control of your future, no matter how many hours you work each week.

Conclusion

Retirement planning isn’t just for full-time workers. As a part-time employee, you have more options than ever to build a secure financial future. Whether through an employer-sponsored plan, an IRA, a state auto-IRA, or an HSA, the key is to start early, save consistently, and use the tools and resources available.

Don’t wait for the “perfect” time or the “perfect” job. Every dollar you save today is a step closer to the retirement you deserve. With careful planning and the help of digital tools like Beem, you can take control of your retirement savings and build a more secure financial future. In addition, Beem’s Everdraft™ lets you withdraw up to $1,000 instantly and with no checks. Download the app here.

FAQs for Best Retirement Plans for Part-Time Workers