If you just started a new job or have been in the workforce for a few years, it is wise to look into the retirement plans offered by your employer. Look into items like a 401(k) or a traditional Roth, a 403(b), a 457(b), or a pension.
Sign up for a retirement plan as soon as you are eligible or able. The sooner that these plans are utilized the more you will be able to set aside. Starting as soon as possible means more time to put money away as well as more interest and benefits earned over a longer period of time.
Find the Right Type of Retirement Account
Many jobs offer more than one retirement account, some offer only one, while others may not offer any.
If you do not have the opportunity to join a retirement program through work, an individual retirement account (IRA) is a good option to consider. They are even a great idea if your job does offer a plan.
The main difference between an IRA and a 401(k) is how much you can contribute to your account if it is sponsored through an employer. For example and IRA contribution is capped at $6,000 a year as of 2020/2021 and $7000 per year if you are over 50. A person is allowed multiple IRAs but only able to contribute the maximum across all accounts. A 401(k) is maxed at $19,500 or $26,000 for those over 50.
Different accounts offer different benefits and hold different rules.