Retirement · 8 min read
Retirement Planning 101: 401(k), IRA, and Social Security
A beginner-friendly guide to retirement accounts, contribution limits, employer matching, and Social Security timing.
Start with your employer match
If your employer offers a 401(k) match, contribute enough to get the full match before almost anything else. It is an immediate 50-100% return on your money. Missing the match is like leaving a raise on the table.
Choose the right account
401(k)s have high contribution limits and are easy to automate. IRAs give you more investment choices. A Roth IRA is great for tax-free growth. Many people use a 401(k) for the match and tax deduction, then add a Roth IRA for flexibility.
When to take Social Security
You can claim Social Security as early as 62, but your benefit grows for every year you delay up to 70. If you expect to live into your 80s, delaying usually gives you more lifetime income. If you need income now or have health concerns, claiming earlier can make sense.
Action step
Use the retirement calculator to estimate how much you need to save. Then use the 401(k) calculator and Social Security calculator to see if you are on track.