Key takeout
If you don’t have a retirement account and don’t know where to start, you’re not alone.
About 40% of Americans do not have a retirement savings account, according to global analysis and advisory firm Gallup. Their research showed that money-making people are unlikely to have a retirement account.
Rob Williams, managing director of financial planning at Charles Schwab, said many people want to save for their future, but they are unsure where and how to start. This is especially true for those looking to achieve their goals.
The easiest way to get started is to make sure you’re signed up for a company sponsored retirement account, such as the 401(k), Williams said. He recommends that employees choose the best match that the company’s company can maximize retirement savings.
However, not everyone has access to these benefits, whether they are self-employed, working in small businesses, changing jobs frequently, or working in the service industry. As a result, these groups are more likely to have little or no retirement savings, just like younger Americans who think they have enough time to start saving.
It doesn’t eliminate people without accessing the 401(k). Below are some tips from financial experts on how to start your retirement savings from scratch.
First, create emergency funds
With economic uncertainty and inflation, it is even more important to make money easily available in these “just-in-case” moments, experts said.
“It’s essential to have emergency funds first before contributing to retirement savings. Keeping your commitment will quickly start off with just a little.”
I’ll start with it small
The money spent on your retirement is money to help you in a future where you meet your needs. Certified Financial Planner Melissa Caro said that even if you skip a $20 meal and put it in your account, it’s a good start.
“The first step isn’t about achieving your magical savings goals. Just open an account. The dollar amount is more important than momentum. You don’t need a six-digit number to get started. You need a crack in the door,” Karo said.
Open your IRA account
Many financial advisors suggest opening an individual retirement account (IRA) if they are not working for a company that offers company-sponsored retirement plans.
“The Ross IRA is usually the easiest entry point if you don’t have a 401(k),” Karo said.
IRA accounts are not attached to your employer, providing flexibility. In 2025, most people under the age of 50 can contribute up to $7,000 a year, depending on the revised adjusted gross income.
