Saving for retirement can feel overwhelming, especially if you haven’t started yet. But whether you’re 20, 30, 40, 50, or 60, it’s never too late — or too early — to take control of your future. 

What Is an IRA?

One of the most flexible and tax-advantaged ways to save for retirement is through an Individual Retirement Account (IRA). The best part, you can use an IRA even if you don’t have access to an employer-sponsored 401(k) or other workplace savings plan.

There are two main types of IRAs to choose from:

• Traditional IRA: Your contributions may be tax-deductible, lowering your taxable income for the year. You pay taxes later when you withdraw money in retirement.

• Roth IRA: You contribute after-tax money, meaning you won’t get an immediate tax break. But the big advantage comes in retirement — you can withdraw both your contributions and investment growth tax-free.

Both accounts offer benefits, and the right choice depends on your age, income, and future tax expectations.

Start an IRA at Any Age

The main reason to open an IRA is simple: future security. 

Retirement may seem far away – or maybe it is sneaking up on you. Whatever your situation, consistent savings can make a big difference over time.

• Starting Young: If you’re in the early stages of your career, starting an IRA gives you decades of compound growth, so your money earns returns on both your contributions and previous earnings. Even modest monthly contributions can grow into a large nest egg over time.

• Starting Mid-Career: Many people don’t get serious about retirement savings until their 30s or 40s, and that’s fine. IRAs offer a tax-efficient way to build savings quickly with the flexibility to choose investments that match your goals.

• Starting Later in Life: Even in your 50s or 60s, it’s not too late to save and invest for retirement. In fact, the IRS allows people aged 50 and over to make catch-up contributions. With careful planning, an IRA can help boost your financial independence during your retirement years.

How to Open an IRA on Your Own

Opening an IRA is easier than you might think. Here’s a step-by-step guide:

• Pick a Financial Institution: You can open an IRA at a bank, credit union, or an investment firm. Look for options with low fees and trusted contact methods.

• Choose Between Roth and Traditional: Younger, lower-income earners often benefit from a Roth IRA because of the future tax-free growth. Higher earners, or those seeking to reduce their current-year tax burden, may prefer a traditional IRA. Many investors choose to have both types over time.

• Decide How to Invest: Once your IRA is open, you get to select your investments. Common options include stock or bond index funds, target-date funds, or individual stocks and bonds. Many start with low-cost index funds that track the market.

• Contribute Regularly: For 2025, the annual IRA contribution limit is $7,000, with an additional $1,000 catch-up contribution if you’re 50 or older. Even small monthly contributions can add up and grow over time.

• Automate Your Savings: Setting up automatic monthly contributions makes saving effortless — and ensures that you stay consistent with your savings, regardless of what the market may be doing.

It’s Always a Good Time to Start

For additional information on IRAs, see information published by the IRS and SEC.

You may want to reach out to a trusted financial advisor to help you decide the type of IRA and investments that best fit your situation. Read this article for more insight into selecting financial service providers. 

Finally, remember this: No matter your age or financial situation, an IRA offers a tax-advantaged way to save for your future. Whether you’re starting small or making catch-up contributions, the important thing is to act.