Starting a retirement fund might sound intimidating, especially if you’re in your 20s or 30s. But it’s one of the most important financial moves you can make. The good news? You don’t need a lot of money to start, and you don’t have to be a finance expert. You just need a plan, a bit of consistency, and some time.

Here are the 10 most important things to do when you’re starting your retirement fund.

1. Start Early
   The sooner you start saving, the more time your money has to grow. This is thanks to compound interest, which means your money earns interest, and that interest earns interest too. For example, if you invest just $100 a month starting at age 25, you could have over $230,000 by age 65 with a 7 percent return. Time matters more than the amount you save.
2. Get Your Employer Match
   If your job offers a 401(k) with a company match, take it. This is free money. For instance, if your employer matches 100 percent of up to 4 percent of your salary, and you make $50,000, that’s $2,000 added to your retirement account every year, just for contributing. Don’t leave that money on the table.
3. Open a Roth IRA
   If you’re under the income limit (around $146,000 for individuals in 2025), consider a Roth IRA. You put in money you’ve already paid taxes on, and when you retire, your withdrawals are tax-free. It’s a great option for younger people who are likely in a lower tax bracket now than they will be in the future.
4. Set a Monthly Savings Goal
   You don’t need to start with a huge amount. Start small and build up. Maybe it’s 5 percent of your paycheck now, and you add 1 percent each year. Eventually, aim to save around 15 percent of your income, including any employer contributions. The key is to make saving a habit.
5. Pick Simple, Low-Fee Investments
   When you’re just starting, look for investments that are easy to manage and don’t charge high fees. Index funds and target-date retirement funds are good places to start. These are often available through brokerages like Vanguard, Fidelity, or Schwab. They offer built-in diversification, which helps spread your risk.
6. Know Your Account Options
   There are different types of retirement accounts, and it helps to know how they work.
   Traditional IRA or 401(k): You don’t pay taxes on the money you put in, but you’ll pay taxes when you take it out in retirement.
   Roth IRA or Roth 401(k): You pay taxes now, but your withdrawals in retirement are tax-free.
   If you think your income will grow over time, the Roth option may make more sense.
7. Understand Your Risk Tolerance
   When you’re young, you can afford to take more investment risks because you have time to recover from market ups and downs. Most young investors put more of their money in stocks and less in bonds. If you’re not sure where to start, target-date funds automatically adjust your investments based on your age and retirement timeline.
8. Don’t Withdraw Early
   Once your money is in a retirement account, leave it there. Withdrawing early usually comes with penalties and taxes, and it also means your money stops growing. The only real exception is that Roth IRAs let you take out your original contributions (but not the earnings) without penalties.
9. Combine Old Retirement Accounts
   If you’ve had more than one job, you may have old 401(k) accounts scattered around. Consider rolling them into an IRA or into your new employer’s plan. It makes it easier to keep track of your savings, and you can often reduce fees this way too.
10. Check In Once a Year
    At least once a year, look at your account. Are you saving enough? Has your income increased so you can contribute more? Are your investments performing reasonably well? This simple habit can make a huge difference over time.

Bonus Tip: Use Technology to Stay On Track
Apps like Fidelity Spire, Empower, and SoFi can help you stay organized and on goal. Some even help you open and fund retirement accounts directly from your phone.

Final Thoughts
Starting a retirement fund is one of the smartest financial decisions you can make. You don’t have to be perfect. You just need to get started and build better habits over time. Even small steps now can lead to a much more comfortable future. Don’t wait—your future self will thank you.