How to open a retirement account
You open a retirement account either through your employer's workplace plan or on your own as an individual retirement account at a bank or brokerage. Start with the workplace plan if it offers a match, then consider an individual account for extra saving or if you have no plan at work. Opening takes under an hour; choosing investments is the part to research or ask about.
Why it matters: Longer average lifespans and career gaps make an early start matter more.
Steps
- Ask your employer's benefits contact whether you are eligible for a workplace plan and when enrollment opens.
- Enroll, then ask what rate earns the full match and decide whether it fits your budget.
- Name a beneficiary on the account the same day.
- If you have no workplace plan or want to save more, compare two or three providers for an individual account on fees and minimums.
- Open the individual account with your ID, bank details and beneficiary information ready.
- Set an automatic monthly contribution from your checking account.
- Read the investment options and fees in plain language before choosing; if unsure, write your questions down for a fee-only advisor.
- Put one yearly check on your calendar to raise your contribution and review your beneficiary.
Stop and call a professional if
- you need help choosing investments; ask a fee-only fiduciary advisor, who is paid by you rather than by commissions
- you are rolling over an old plan and are unsure how to move it without triggering taxes
- you have self-employment income and want to know which account types you qualify for
Questions to ask the professional
- Are you a fiduciary at all times, and how exactly are you paid?
- What are the total yearly fees on this account, as a percentage?
- How do I move an old workplace plan into this account without a tax bill?
Common mistakes
- Leaving the money in cash inside the account for years because no investment was chosen.
- Skipping the workplace plan and losing the match.
- Cashing out an old workplace plan when changing jobs, which usually triggers taxes and penalties.
- Forgetting to name or update a beneficiary.
Teach this to someone
A one page sheet for showing a friend, a teenager or a parent: what to say, what to show, and one question to check it landed.
Teach: How to open a retirement account
What to say
You open a retirement account either through your employer's workplace plan or on your own as an individual retirement account at a bank or brokerage. Start with the workplace plan if it offers a match, then consider an individual account for extra saving or if you have no plan at work. Opening takes under an hour; choosing investments is the part to research or ask about.
What to show
- Ask your employer's benefits contact whether you are eligible for a workplace plan and when enrollment opens.
- Enroll, then ask what rate earns the full match and decide whether it fits your budget.
- Name a beneficiary on the account the same day.
- If you have no workplace plan or want to save more, compare two or three providers for an individual account on fees and minimums.
- Open the individual account with your ID, bank details and beneficiary information ready.
- Set an automatic monthly contribution from your checking account.
- Read the investment options and fees in plain language before choosing; if unsure, write your questions down for a fee-only advisor.
- Put one yearly check on your calendar to raise your contribution and review your beneficiary.
Where it stops
Stop and call a professional if you need help choosing investments; ask a fee-only fiduciary advisor, who is paid by you rather than by commissions.
Check question
Your employer's workplace plan offers a match. What is the match?
Answer: Extra money your employer adds only when you contribute to that plan. A match is extra pay that only arrives if you contribute to the workplace plan.
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Related skills
Sources
- US federal guidance on workplace and individual retirement plans, 2026. Reviewed September 28, 2026.
Written in our own words from the sources above. It is general information, not advice for your situation; where a professional, your doctor or your lease says something different, follow them.
Last reviewed . First published .