Don't Have Any Retirement Savings? Here's Where to Start

It’s no secret that you need a lot of money to retire comfortably. For many, retirement expenses can exceed $1 million. With regular contributions, it’s possible to save that much, but many aren’t sure where to start.

Where you put your savings is almost as important as how much you save. It’ll determine what you can invest in, and consequently, how fast your savings grow. It’ll also affect when you’ll pay taxes on that money. There’s no wrong answer, but some accounts make more sense than others.

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Start with your 401(k) if you’re eligible for a match

When you’re eligible for a 401(k) match through your employer, this is where you want to start every year. If you don’t claim your match, you lose it, so getting as much of it as you can should be your top priority.

The size of your match will depend on your salary and your company’s matching formula. For many, it’s worth thousands of dollars today. This could grow to tens of thousands of dollars by retirement.

Check with your employer if you’re not sure how its matching formula works. Once you know how much you must set aside to receive the whole thing, divide this amount by the number of pay periods left in the year to figure out how much you must set aside from each paycheck. Get as close to this amount as you can.

If you claim your full 401(k) match and want to set aside more, you can do so. Or you could switch to saving in an IRA. In 2026, the regular contribution limit for a 401(k) is $24,500.

Try an IRA if you don’t have access to a 401(k)

An IRA is your best bet if you don’t have access to a 401(k) through your job. These accounts enable you to set aside up to $7,500 in 2026 if you’re under 50 or $8,600 if you’re 50 or older. This should be plenty for most people.

IRAs also give you a lot of freedom. You can choose from a much wider variety of investment options than you normally find with a 401(k). You’re also able to choose when you want to pay taxes on your savings.

Traditional IRAs give you a tax break when you make contributions, but you owe ordinary income taxes on your withdrawals. Roth IRAs have no upfront tax break, though they give you tax-free withdrawals in retirement. However, Roth IRAs have income limits that can prevent some high earners from contributing directly to one of these accounts.

If you max out your IRA, you may be able to set aside more money in a health savings account (HSA). Or you could save in a taxable brokerage account. The latter doesn’t offer the same tax breaks, but it gives you the freedom to withdraw your savings whenever you want.