Starting retirement savings from $0? Here’s how to begin building a nest egg

Retirement savings tips: Saving for retirement can feel overwhelming, especially if you’re starting from scratch. For many, the costs of living comfortably in retirement can top $1 million.

Starting Retirement Savings from Scratch: What You Need to Know

While that may sound daunting, the key is to start early and make consistent contributions. Where you put your savings is just as important as how much you save, it affects what you can invest in, how fast your money grows, and when you pay taxes.

Why a 401(k) Match Should Be Top Priority

If your employer offers a 401(k) match, this should be your top priority. Not claiming your full match is essentially leaving free money on the table. The size of your match depends on your salary and your company’s formula, and it can add up to thousands today and tens of thousands by retirement, as per a report.


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How to Maximize Employer 401(k) Match

To maximize it, check how much you need to contribute each paycheck and get as close to that amount as possible. In 2026, the standard contribution limit for a 401(k) is $24,500.

Why an IRA Might Be the Best Option Without a 401(k)

If your job doesn’t offer a 401(k), an IRA is your best option. In 2026, you can contribute up to $7,500 if you’re under 50, or $8,600 if you’re 50 or older, as per The Motley Fool report.

IRAs give you more flexibility than most 401(k)s, letting you choose a wide range of investments and decide when to pay taxes.

Traditional vs Roth IRA: Which One Works for You

Traditional IRAs give you a tax break on contributions but taxes are owed on withdrawals, while Roth IRAs let you withdraw tax-free, though high earners may face contribution limits, as per The Motley Fool report.

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Additional Savings Options: HSAs and Taxable Accounts

Once you’ve maxed out your IRA, you might look into other ways to save. Health savings accounts (HSAs) offer tax advantages, or you could invest in a taxable brokerage account for more flexibility, even without tax breaks, as per The Motley Fool report.

Consistency Over Time: How Small Contributions Grow

Starting small and being consistent is what builds a nest egg over time. Even if you’re starting at $0, each contribution puts you one step closer to a secure retirement.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.

FAQs

What’s the maximum I can put into a 401(k) in 2026?

The contribution limit is $24,500 for most people in 2026.



I don’t have a 401(k) at work. What should I do?

An IRA is your best bet. You can contribute up to $7,500 if under 50, or $8,600 if 50 or older.