How to Save for Retirement in the US
Introduction
Saving for retirement may seem far away, but the earlier you start, the better.
401(k) Plans
- Offered by employers.
- Pre-tax contributions.
- Employer match is free money.
Individual Retirement Accounts (IRAs)
- Traditional IRA (tax-deferred).
- Roth IRA (tax-free withdrawals later).
The Power of Compounding
Investing $300/month at 25 vs. 35 can result in hundreds of thousands of dollars difference by retirement age.
Tips for Retirement Savings
- Always take advantage of employer match.
- Diversify investments.
- Increase contributions as income rises.
Try our Retirement Savings Calculator to project growth.
Disclaimer: This article is for educational purposes only and does not constitute financial advice.