How to save for retirement

1. 01Capture the free employer matchIf your job offers a 401(k) or similar plan with a match, contribute at least enough to get the full match. It's an immediate 50–100% return on your money before any investment growth.
2. 02Choose the account that fits your tax lifeTraditional 401(k)/IRA: save pre-tax now, pay tax in retirement. Roth 401(k)/IRA: pay tax now, withdraw tax-free later. SEP IRA and Solo 401(k) are for self-employed people and let you save far more than a regular IRA.
3. 03Know the contribution limits401(k) limits are much higher than IRA limits. If you're self-employed, a SEP IRA or Solo 401(k) lets you contribute as both employee and employer. Catch-up contributions are available starting at age 50.
4. 04Automate the contributionSet a percentage of every paycheck to go straight into the account. Increase it by 1% every raise or every January until you hit your target. Money you never see is money you don't spend.
5. 05Invest simply and cheaplyA target-date fund or a mix of low-cost total-market index funds handles diversification for you. The biggest drag on returns is high fees — aim for funds with expense ratios well under 0.5%.
6. 06Leave it aloneDon't check it daily. Don't move to cash every time the market dips. Time in the market beats timing the market, and early contributions do the heaviest lifting because of compounding.
7. 07Name beneficiaries and keep recordsRetirement accounts pass directly to named beneficiaries, regardless of your will. Review them after major life events and keep a record of every account and provider.

General educational information, not legal, tax, medical, or financial advice. Rules vary by country and change over time — verify with a qualified professional before acting.