60% of Americans Aren’t Saving for Retirement—Here’s Where to Begin

In today’s fast-paced and ever-changing world, securing a comfortable and worry-free retirement has become increasingly important. Financial experts consistently stress the significance of planning and saving for retirement, as it directly impacts one’s future financial stability. Unfortunately, a recent survey conducted by The Harris Poll on behalf of NerdWallet has uncovered a disconcerting statistic: a staggering 60% of Americans have yet to establish a retirement-specific account.

Shockingly, this figure is even higher among millennials and members of Generation Z who are currently saving for their future. Recognizing the pressing need to address this issue, financial planners emphasize the importance of initiating retirement savings as early as possible, capitalizing on the power of compounding interest to maximize your investment portfolio.

But where does one begin on this journey towards a secure retirement? Fear not, for in this article, we will delve into a wide range of investment options, dissecting their pros and cons, and provide invaluable guidance on how and where to allocate your hard-earned retirement savings. Prepare to embark on a transformative financial adventure that will pave the way for a prosperous retirement.

The Importance of Emergency Savings

Before diving into retirement investments, it’s essential to have a safety net in the form of emergency savings, including the option of adjustable life insurance. Financial experts emphasize the need to cover unforeseen expenses without resorting to dipping into retirement funds or going into debt. While saving three to six months’ worth of expenses is commonly recommended, it’s not necessary to accumulate the full amount before starting your investment journey.

Experts advise individuals to have at least $1,000 in an emergency fund before initiating their investment strategy. This ensures you have a financial cushion while simultaneously building your emergency savings alongside your retirement investments. By considering the benefits of adjustable life insurance, you can further protect your financial well-being in case of unexpected events.

Capitalizing on Workplace Accounts

Workplace retirement accounts, such as 401(k)s, offer a fantastic opportunity to maximize your retirement savings. Financial experts strongly recommend taking advantage of employer matching contributions, as this essentially represents “free money.”

Contributions to traditional 401(k) accounts lower your taxable income in the current year, while Roth accounts allow for tax-free withdrawals in retirement. Selecting the appropriate type of account depends on your tax situation and personal preference. Roth contributions are often favored by early-career workers earning lower salaries, as paying taxes upfront can be advantageous when in a lower tax bracket.

Triple Tax Savings with Health Savings Accounts (HSAs) 

Health savings accounts (HSAs) provide a unique opportunity for retirement savers enrolled in high-deductible health plans. Similar to traditional 401(k) contributions, HSA contributions can lower your taxable income.

Additionally, any investments made within the account grow tax-free. Withdrawals used for qualified medical expenses are also tax-free. However, using an HSA requires careful planning, as you may have to pay out-of-pocket medical expenses to allow your HSA contributions to accumulate and grow over time.

Building Your 401(k) or IRA 

Once you’ve secured employer matching contributions and maximized your HSA, it may be time to focus on your 401(k) or individual retirement account (IRA). Contributing to a 401(k) allows for substantial tax-efficient savings. Notably, the 2023 contribution limit for a 401(k) is $22,500, with an additional $7,500 for individuals aged 50 or older.

However, some individuals may find a 401(k) less appealing due to limited investment options or a preference for a Roth account. In such cases, an IRA can be an excellent alternative. An IRA provides more flexibility in investment choices – traditional or Roth varieties. In 2023, the contribution limit for an IRA is $6,500, with an additional $1,000 allowed for individuals aged 50 or older.

Taxable Brokerage Accounts for Additional Savings

If you have maximized your contributions to other retirement savings options, congratulations! You may have set aside a considerable amount of money for your retirement. Now consider opening a regular brokerage account to continue investing.

This non-qualified brokerage account allows you to invest in low-cost, tax-efficient options like ETFs (exchange-traded funds) or index funds. Brandon Gibson, a certified financial planner and founder of Gibson Wealth Management, recommends this approach for individuals who still have funds available for investment.

This way, you can continue growing your wealth while ensuring flexibility and accessibility to your funds.


Saving for retirement is a vital aspect of financial planning, and it’s never too early to start. Individuals can maximize their long-term financial security by following a strategic approach to retirement savings. Remember, every individual’s financial situation is unique, so it’s essential to consult with a certified financial planner to tailor a retirement savings plan that aligns with your specific goals and needs.