April 1, 2026
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Financial Planning

Plan for retirement.

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The earlier you start planning for retirement, the more time your money has to grow and the easier it is to build the future you want. Once your current finances are running smoothly, it’s a great time to turn your attention to your long term goals, especially retirement.

 Here is a quick start guide to help you get started with retirement planning.

1. Define your retirement number.

Before you start saving, it helps to have a clear target. A common guideline is that you may need about 80% of your current annual income for each year of retirement and that you might spend roughly 30 years in retirement.

As a simple estimate, you can take your current annual income, multiply by 0.80, then multiply again by 30 to get a ballpark total for your retirement savings goal. From there, online tools can help you refine that estimate based on your age, income, and plans. Explore our Planning for Retirement learning module, Retirement Income Calculator, and 401(k) Calculator to customize your numbers.

2. Choose your retirement accounts

There are several types of accounts that can help you work toward your retirement goal. Two of the most common are:

  • 401(k): If you’re employed, you may already have access to a 401(k) plan that lets you contribute directly from your paycheck. Many employers offer matching contributions—essentially free money—up to a certain percentage of your salary. Consider contributing at least enough to earn the full match and increase your contribution rate when you can. Your savings can grow tax deferred until you withdraw them in retirement.
  • Individual Retirement Account (IRA): You can also open and fund an IRA on your own. IRAs offer tax advantages, but contribution limits and deductibility can depend on your income and tax filing status. With a traditional IRA, your money can grow tax deferred and withdrawals are generally taxable. With a Roth IRA, contributions are made with after tax dollars, but qualified withdrawals in retirement are typically tax free. To learn more about how IRAs work and what to consider, check out our free online learning module on IRAs.

3. Use catch up contributions if you’re 50 or older

If you’re getting a later start or want to accelerate your progress, catch up contributions can help. Starting at age 50, you’re allowed to contribute additional amounts beyond the standard annual limits to many retirement accounts, including 401(k)s and IRAs. These extra contributions can make a meaningful difference in the years leading up to retirement.

Here’s a quick view of the common retirement account features and contribution limits for the 2026 tax year:


Retirement account comparison

401(k)IRARoth IRA
Allows Matching FundsYesNoNo
Tax-Treatment of ContributionsPre-tax (reduces taxable income today)
May be tax-deductible (depends on income & coverage by a workplace plan)
After-tax (not deductible)
GrowthTax-deferredTax-deferredTax-free (qualified withdrawals)
Max Yearly Contribution (2026) $24,500$7,500$7,500
Maximum Yearly Contribution Age 50+ (2026)
$32,500 (includes $8,000 catch-up)
Higher limits may apply for ages 60–63 (up to $11,250) if plan allows.		$8,600$8,600

Source: Internal Revenue Service (IRS), 2026 Retirement Contribution Limits

4. Select your investment approach

After you’ve chosen your account types, you’ll decide how to invest your money. One simple option is a target date fund, which is often available in employer sponsored plans.

Target date funds are named with a future year, such as “Retirement 2055 Fund”, that lines up with your expected retirement date. These funds typically start with a more growth focused mix of investments, like stocks, and automatically shift toward a more conservative mix (more bonds, fewer stocks) as you approach retirement. This built in adjustment helps manage risk as your timeline starts to shrink.

If you prefer to build your own mix, you can also diversify across stock funds, bond funds, and other options based on your comfort with risk and your timeline.

With some planning now and regular check ins along the way, you can build a retirement strategy that supports the life you want later. Revisit your plan periodically, adjust your contributions when your income or goals change, and keep your long term future in view as part of your overall financial wellness journey.

Free Online Learning

Dive deeper into your retirement.

Boost your financial know-how in just minutes. Explore these quick, free online modules designed to build your confidence with money.

Managing your 401(k)

In this module, you’ll learn how to manage 401(k) contributions, investments, and rebalancing to maximize your savings potential.

Retirement Income Strategies

Retirement is funded by your savings. Explore income sources and strategies to make your money last.

Estate planning

Estate planning isn’t just for the wealthy. If you have assets or loved ones, having a plan can ease stress and uncertainty later.

The information provided is accurate as of the publication date and is for educational purposes only and doesn’t constitute financial, tax, legal, or accounting advice. It is to be considered as general information, not recommendations. Please consult with an attorney, financial, or tax professional for guidance.

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