HINT: It's a lot more than you think ;) The question of how much self employed income is equal to the amount you're earning while employed may be important as you prepare for retirement. Many people start their own businesses or start up some sort of service related to their skills they've accumulated throughout life as they reach retirement. There are many things to consider. For example, you may not receive as many benefits as you would if you were self employed. On the other hand, you may receive a lot more tax deductions depending on your trade. Let's assume that you make 100k a year. Once you factor in benefits such as medical, TSP, employer sponsored group life ensurance, payroll taxes and social security, then you would have around 130k. Some people who do certain professions like teaching may have additional pension benefits so if you are one of these people in this category, then add another 10k for pension. However, this is a special case so think about whether this part pertains to you or not. Let's convert this to self employed work. You would need to make up around 20.5% to offset the employer healthcare premium contributions, plus a 5% match to a 401(k), payroll taxes, and group life insurance. So the answer is, around 19 to 21%. Consider this before switching to the self employed route. However, please do not be discouraged by the numbers you'd have to make up in earnings because there is no greater joy than being your own boss. Best of luck and be sure to share your experiences in the comments below if you do decide to switch to becoming self employed!