Millions of Americans are heading into their working years without a 401(k) in sight. Whether you’re a freelancer, a gig worker, or just someone whose employer never got around to offering one, the idea of retiring comfortably can feel genuinely daunting. The 401(k) has been treated like the golden ticket of personal finance for decades, and if you don’t have one, it’s easy to feel like you missed the bus.
So I did what any curious person in 2026 would do: I asked ChatGPT. I wanted to know, honestly and plainly, whether you can retire without a 401(k) and how. The answers were surprisingly thoughtful, sometimes conventional, and occasionally a little unexpected. Let’s dive in.
More People Are Without a 401(k) Than You Think
Here’s the thing – you’re not some rare financial outlier if you don’t have a 401(k). More than one-third of working adults don’t get a 401(k) option at their job, including freelancers, people in part-time roles, and workers whose employers simply don’t offer them.
That’s a staggering number of people who need an alternative path. Retirement at age 65 with a healthy nest egg and a 401(k) is no longer a given for many American workers, with today’s employees living longer, working longer, and facing greater financial complexity than past generations.
I think that framing matters. It resets the conversation from “what went wrong?” to “what do I do now?” Thankfully, ChatGPT had a lot to say about that second question.
Open an IRA – It’s the Most Obvious First Move
The very first thing ChatGPT flagged was the individual retirement account, or IRA. If you’ve simply never been offered a 401(k) through your employer, that doesn’t mean you can’t have a retirement account. ChatGPT pointed out that you can invest up to $7,000 a year into a traditional or Roth IRA, or $8,000 if you’re over 50.
There are two main IRA types – traditional and Roth – and you can use either or both. With a traditional IRA, you put sometimes tax-deductible money in today, then pay taxes on whatever you withdraw when you retire. With a Roth, it’s the opposite: you put money in after paying taxes today, it grows tax-free, and then you get to withdraw it tax-free too.
Unlike traditional IRAs, there are no required minimum distributions during your lifetime with Roth IRAs, which helps many people keep their money invested for longer. That’s a genuinely big deal if you expect to live well into your 80s or beyond. The IRA is your starting point – full stop.
Self-Employed? A SEP IRA or Solo 401(k) Can Supercharge Your Savings
If you freelance or run a small business, you can put money into a SEP IRA or Solo 401(k) plan, which ChatGPT noted let you save significantly more than a standard IRA. Think of these accounts as the power tools compared to the standard IRA’s hand tool.
A SEP-IRA allows contributions of up to 25% of an employee’s compensation, up to $72,000 for the 2026 tax year. If you’re self-employed, you can make a maximum contribution of 20% of your net income reported on IRS Schedule C, minus the self-employment tax.
Solo 401(k) plans are great for self-employed people who want to save more for retirement. They let you contribute as both an employee and employer, meaning bigger savings, and the plan is tailor-made for freelancers and small business owners. If you’re running your own show, ignoring these accounts is honestly leaving money on the table.
Build Income-Generating Assets Outside of Retirement Accounts
If you’re not relying on retirement accounts at all, ChatGPT suggested building other assets to generate income. This included avenues like investing in real estate, dividend-paying stocks or index funds, online businesses, or consulting.
Another source of income to live off is investments. ChatGPT recommended investing in avenues like real estate, dividend stocks, exchange-traded funds (ETFs), bond ladders, or certificates of deposit (CDs). Honestly, this is the part where things get interesting, because it moves the conversation away from just “save more” and toward building real, breathing income streams.
Think of it like this: a retirement account is a reservoir, but an income-generating asset is a river that keeps flowing. You could also look at more hands-off real estate strategies that offer capital gains, such as investing in a real estate investment trust (REIT), a real estate investment group (REIG), or an online real estate platform through crowdfunding.
Use a Taxable Brokerage Account as a Retirement Vehicle
Any investment account can serve as a retirement account if you treat it that way. Consider setting up a brokerage account specifically intended for retirement, and schedule automatic contributions using a cadence that works for you.
Unlike IRAs, which incur penalties if you make early withdrawals, a regular brokerage account gives you easier access to cash if you need to dip into your savings early for an emergency. That flexibility is something a lot of people underestimate. It’s not as tax-advantaged as an IRA, but it’s not sitting behind a locked door either.
The key here is discipline. A brokerage account without intention is just a trading account. With intention, it becomes your retirement safety net. Label it, automate it, and leave it alone as much as possible.
Don’t Ignore Your HSA – It’s a Stealth Retirement Account
You may already have a Health Savings Account (HSA), which provides a tax-advantaged way to set aside money for health expenses. But your HSA can also double as a retirement savings tool. Unlike Flexible Spending Accounts, HSAs don’t require you to spend the funds within a limited timeframe, so if you save HSA money you don’t end up spending on healthcare, you can hold onto your savings and let it grow over time.
ChatGPT called maxing out an HSA “a powerful triple-tax-advantaged retirement tool.” You get a tax deduction when you contribute, tax-free growth, and tax-free withdrawals for medical expenses. After age 65, you can withdraw for any reason and just pay regular income tax, which essentially makes it another retirement account.
I know it sounds crazy to call a health account a retirement strategy, but this is genuinely one of the most underutilized tools in personal finance. Most people treat it like a medical debit card and drain it every year. That’s a real missed opportunity.
Consider the FIRE Approach – Even a Lite Version of It
ChatGPT suggested following the FIRE (Financial Independence, Retire Early) movement. This entails saving roughly half to nearly three-quarters of your income and investing in low-cost index funds. Now, most people can’t do that in full. But even applying the philosophy at a smaller scale can dramatically shift your retirement trajectory.
ChatGPT also noted that those following FIRE follow the 25-times rule. For example, if your annual expenses are $40,000, you need roughly $1 million invested to retire sustainably. That’s the math in plain English, and it’s more empowering than terrifying once you let it sink in.
The FIRE movement isn’t for everyone, and I don’t think you have to live in a cardboard box to participate. Even saving 20% to 30% of your income consistently, pointed at low-cost index funds, moves the needle enormously over a decade or two.
Rethink What Retirement Actually Means
There is a traditional view of retirement as being in your 60s, relaxing and fully done with employment. However, you don’t have to conform to tradition. According to ChatGPT, another way to think of retirement is to ask: “How can I achieve financial freedom?” This can mean solely working part-time, or monetizing hobbies, so work feels less demanding. If you don’t want to work at all, ChatGPT suggested adapting to a lifestyle where you can live off your current savings.
This is a mindset shift that I think more people need to hear. Retirement doesn’t have to be a cliff edge where you step off your career and fall into leisure. It can be a gradual slide into doing less of what you dislike and more of what you love. That changes the math too, because you may not need to replace your full income.
Plan Aggressively for Healthcare Costs
This one surprised me when ChatGPT flagged it so prominently, but it makes total sense. To plan for healthcare in retirement, ChatGPT recommended looking into ACA health plans or Health Savings Accounts. Without employer coverage, this becomes your responsibility entirely.
ChatGPT recommended purchasing reliable healthcare coverage, noting that retirees frequently underestimate healthcare costs and should try to get coverage while they are still healthy enough to qualify. Options include Medigap, separate dental and vision plans, and long-term care insurance if needed.
If you don’t have a lot of health issues right now, ChatGPT also said to prioritize preventative care now to stay in good shape. It’s a bit like maintaining your car religiously so it doesn’t leave you stranded at 200,000 miles. The cost of ignoring this is enormous.
Reduce Your Cost of Living Strategically
Ways to meaningfully reduce spending, according to ChatGPT, included relocating to an area with a lower cost of living, living in an RV or tiny home, or cutting expenses like subscriptions, insurance plans, and car loans.
Let’s be real – this strategy isn’t glamorous. Moving to a cheaper city or downsizing your home doesn’t make for an exciting social media post. Still, the financial impact is enormous. Reducing your monthly expenses by even a few hundred dollars changes the amount of savings you need to retire by tens of thousands of dollars when you do the reverse math on the 25x rule.
If you’re over 62 and own a home, ChatGPT also noted you could consider a reverse mortgage to get cash more quickly, though you’ll have to repay that cash if you move out or sell the home. It’s a last resort tool for many, but worth knowing it exists.
Diversify Your Tax Exposure – Don’t Put All Eggs in One Basket
ChatGPT recommended funding both a Roth IRA and keeping some money in a regular taxable brokerage account, because having different types of accounts gives you more options for withdrawals and managing taxes in retirement.
Think of tax diversification like diversifying your actual investments. In retirement, there may be more options to increase after-tax income, especially when savings span multiple account types such as traditional retirement accounts, Roth accounts, and taxable accounts. Relying on just one type of account means you’re at the mercy of whatever tax rates look like in 20 or 30 years.
Nobody knows exactly what tax rates will look like a decade from now. Having money in a pre-tax account, a Roth account, and a taxable brokerage account gives you real flexibility to pull from whichever bucket is most tax-efficient in any given year. That kind of optionality is genuinely valuable.
A Final Word on Using AI for Financial Planning
Here’s something worth saying clearly: ChatGPT is a genuinely useful brainstorming and education tool when it comes to retirement planning, but it has real limitations. ChatGPT has been known to “hallucinate,” which is AI-speak for generating incorrect or even fabricated responses. That’s not a reason to dismiss it entirely, but it is a reason to verify what it tells you.
The best alternative to a 401(k) often depends on how you earn income, how comfortable you are with investment risks, and how many years you have until retirement. No AI tool, no matter how impressive, can substitute for advice that truly accounts for your specific situation.
Use ChatGPT the way you might use a really well-read friend who happens to know a lot about personal finance. Take the insights seriously, follow up on what resonates, and then talk to an actual financial advisor before making major decisions. The strategies it recommended are solid, time-tested, and genuinely worth exploring. It’s hard to say for sure that any single one of them is right for everyone, but the combination of them? That’s a real roadmap.
What’s your biggest barrier to retirement planning right now – is it income, knowledge, or something else entirely? Tell us in the comments.