If you've ever Googled "how can I save for retirement in the United States?" you're not alone. This is a question many people ask, especially those who work in jobs where there are no employment benefits, such as in the construction, domestic service, restaurants or care of people.

For many immigrants, saving for retirement is a confusing or distant topic. Furthermore, understanding the retirement system in the United States can be complicated, especially if it's very different from that of their country of origin, where there is often a more centralized or automatic public system.

But knowing the different strategies for retiring in this country is more important than it seems.

The basis of the retirement system in the United States is the Social Security. If you worked legally for at least ten years and paid taxes With your Social Security number (SSN), you can receive a monthly income once you reach retirement age (between 62 and 67 years old, depending on your year of birth).

The problem is that this income is not enough to live on.

According to Public Policy Institute of the American Association of Retired Persons (AARP), the average Social Security benefit is approximately $1,600 per month.

Related:  The 8 Best Cities to Retire in North Carolina

How do people retire in the United States?

In the United States, there is no single way to retire. Most people combine different sources of income, depending on their type of job. work, their savings, and their access to employee benefits. These are the system's main channels:

• Social Security : is the basis of the system. To receive it, you must have worked legally for at least ten years and have paid taxes with a social Security numberYou can start collecting from age 62, although the amount is higher if you wait until age 67 (full retirement age) or even until age 70 (deferred retirement).
• Employer retirement plans : some companies, Especially big companies or public employers, offer plans such as 401(k)s or traditional (defined benefit) pensions. These plans allow for automatic savings through payroll deductions and sometimes include employer contributions. However, Not all jobs offer this possibility , and those who work in small companies o in an independent way many times they are left out.
• Individual Retirement Accounts (IRAs) Those without access to a plan at work can open an IRA on their own. These accounts allow for tax-advantaged retirement savings if certain requirements are met.

According to a report by the Federal Reserve77% of retirees receive Social Security, but only 52% of those without additional income—such as pensions or personal savings—say they are financially well off. Among those with other sources, that percentage rises to 95%.

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What options do I have if my job doesn't offer a retirement plan?

In the United States, nearly half of private sector workers lack access to a retirement plan. The AARP report indicates that 78% of those working in small businesses—those with fewer than ten employees—lack a plan. Among Latino workers, that figure rises to 64%.

But there are alternatives that do not depend on the employer: 

IRAs: An affordable way to start saving for retirement

IRA accounts (Individual Retirement Account) are an individual option for long-term savings with tax benefits. You don't need your employer to offer them: you can open an IRA on your own, even with a modest income, at banks, credit unions, or platforms like Fidelity, Vanguard, or Charles Schwab.

There are two main types:

• Traditional IRA : The money you deposit is not taxed now, but you will pay taxes when you withdraw it.
• Roth ira : The money already comes tax-paid, but anything you withdraw later will be tax-free.

Both allow you to grow your savings more efficiently than a regular savings account. You can set up automatic deposits each month. The maximum contribution is $7,000 per year (or $8,000 if you are 50 or older).

It is recommended to leave the money in the account until age 59 and a half to avoid penalties, with some exceptions such as medical expenses or home purchases.

Related:  How can agricultural workers with a visa obtain a Social Security number?

What if I don't have a Social Security number?

The people who do not have SSN —for example, those who are undocumented— cannot open a traditional or Roth IRA account , since these accounts are regulated by the IRS and require a Social Security number.

However, those who file taxes with a ITIN (Personal Taxpayer Identification Number) Yes, they can open other types of savings or investment accounts. Some financial institutions accept ITINs as valid identification, especially if accompanied by proof of tax returns and a U.S. address.

These accounts don't have the tax benefits of an IRA, but they allow you to build a long-term savings fund. Community banks, credit unions, and digital platforms offer options designed for immigrants.

In North Carolina, for example, organizations like Self-Help Credit Union and organizations like El Centro Hispano can help you begin this process safely and legally.

It may interest you:  How to get a personal or business loan without a Social Security number in North Carolina?

Where to start if you want to save for your retirement

You don't need a large income to start preparing. These steps can help, even if your job doesn't offer benefits:

• Start with what you can.  Even if you can only set aside $20 or $50 a month, consistency is more important than amount.
• Choose an account that suits your situation.  If you have an SSN, open a traditional or Roth IRA. If you have an ITIN, look for community banks or credit unions that accept your documentation.
• Avoid withdrawing your savings prematurely.  Many accounts have penalties if used before the permitted age, with specific exceptions.
• I asked for advice.  In North Carolina, there are organizations that can help you understand how the system works in Spanish. You are not alone.
• Schedule automatic contributions.  That way you don't have to think about it every month and you avoid using that money for something else.

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Don't have a retirement plan at work? These are your options for saving on your own in the United States.

by Patricia Serrano, Enlace Latino NC
May 20, 2025

Enlace Latino NCMay 20, 2025 If you've ever Googled "how can I save for retirement in the United States?", you're not alone. This is a question many people ask themselves, especially those who work in jobs where there are no benefits, such as construction , domestic service, restaurants , or personal care. For many immigrants, saving for old age is a confusing or distant topic. Furthermore, understanding the retirement system in the United States can be complicated, especially if it's very different from that of your home country, where there tends to be a more centralized or automatic public system. But knowing the different strategies for retiring in this country is more important than it seems. The basis of the retirement system in the United States is Social Security . If you've worked legally for at least ten years and paid taxes using your Social Security number (SSN), you can receive a monthly income once you reach retirement age (between 2025 and 62, depending on your year of birth). The problem is that this income is not enough to live on. According to the Public Policy Institute of the American Association of Retired Persons (AARP) , the average Social Security benefit is about $2022 per month. Related: The 07 Best Cities to Retire in North Carolina How do people retire in the United States? In the United States, there is no one way to retire. Most people combine different sources of income, depending on their type of work , their savings, and their access to employee benefits. These are the main routes of the system: Social Security : is the basis of the system. To receive it, you must have worked legally for at least ten years and have paid taxes with a Social Security number . You can start collecting from age 62, although the amount is higher if you wait until age 67 (full retirement age) or even until age 70 (deferred retirement). Employer retirement plans : Some companies , especially large corporations or public employers, offer plans such as 2025(k)s or traditional (defined benefit) pensions. These plans allow for automatic savings through payroll deductions and sometimes include employer contributions. However, not all jobs offer this possibility , and those who work in small businesses or independently are often left out. Individual Retirement Accounts (IRAs) : Those who do not have access to a plan at work can open an IRA on their own. These accounts allow you to save for retirement with tax advantages if certain requirements are met. According to a Federal Reserve report, 2024% of retirees receive Social Security, but only 2023% of those without additional income—such as pensions or personal savings—say they are financially well off. Among those who add other sources, this percentage rises to 95%. You might be interested in: How do I open a bank account if I'm undocumented in North Carolina? What options do I have if my job doesn't offer a retirement plan? In the United States, nearly half of private sector workers lack access to a retirement plan. The AARP report indicates that 78% of those working in small businesses—those with fewer than ten employees—lack a plan. Among Latino workers, that figure reaches 64%. But there are alternatives that do not depend on the employer: IRAs: An affordable way to start saving for retirement IRA ( Individual Retirement Account ) accounts are an individual option for long-term savings with tax benefits. You don't need your job to offer them: You can open an IRA on your own, even with a modest income, at banks, credit unions, or platforms like Fidelity, Vanguard, or Charles Schwab. There are two main types: Traditional IRA : The money you deposit is not taxed now, but you will pay taxes when you withdraw it. Roth IRA : The money is already tax-paid, but anything you withdraw later will be tax-free. Both allow you to grow your savings more efficiently than a regular savings account. You can set up automatic deposits each month. The maximum contribution is $7,000 per year (or $8,000 if you are age 50 or older). It is recommended to leave the money in the account until age 59 and a half to avoid penalties, with some exceptions such as medical expenses or home purchases. Related: How can farmworkers with visas obtain a Social Security number? What if I don't have a Social Security number? People without an SSN —for example, those who are undocumented —cannot open a traditional or Roth IRA , as these accounts are regulated by the IRS and require a Social Security number. However, those who file taxes with an ITIN (Individual Taxpayer Identification Number) can open other types of savings or investment accounts . Some financial institutions accept ITINs as valid identification, especially if accompanied by proof of tax return and U.S. address. These accounts don't have the tax benefits of an IRA, but they do allow you to build a long-term savings fund. Community banks, credit unions, and digital platforms offer options designed for immigrants. In North Carolina, for example, organizations like Self-Help Credit Union and organizations like El Centro Hispano can help you begin this process safely and legally. You may be interested in: How to get a personal or business loan without a Social Security number in North Carolina? Where to start if you want to save for your retirement You don't need a large income to start preparing. These steps can help, even if your job doesn't offer benefits: Start with what you can. Even if you can only set aside $20 or $50 a month, consistency is more important than quantity. Choose an account that suits your situation. If you have a Social Security Number (SSN), open a traditional or Roth IRA. If you have an ITIN, look for community banks or cooperatives that accept your documentation. Avoid withdrawing your savings early. Many accounts have penalties if used before the permitted age, with specific exceptions. I asked for advice. In North Carolina, there are organizations that can help you understand how the system works in Spanish. You are not alone. Set up automatic contributions. That way you don't have to think about it every month and you avoid using that money for something else. This <a target="_blank" href="https://enlacelatinonc.org/opciones-para-ahorrar-sin-plan-de-jubilacion-en-estados-unidos/">article</a> first appeared on <a target="_blank" href="https://enlacelatinonc.org">Enlace Latino NCand is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License. PARSELY = { autotrack: false, onload: function() { PARSELY.beacon.trackPageView({ url: "https://enlacelatinonc.org/opciones-para-ahorrar-sin-plan-de-jubilacion-en-estados-unidos/", urlref: window.location.href }); } }

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