To keep things simple, let’s focus on the two most common ways to save for retirement.
First, there’s your employer’s retirement plan. At most companies, the plan will be called a 401(k). If you work for a nonprofit, government agency or other eligible groups, your plan may be a 403(b) instead. In addition to traditional 401(k) or 403(b) plans, your employer may offer a Roth 401(k) or even a pension.
Second, is a personal retirement account. Most people are eligible to open a traditional IRA or a Roth IRA on their own (although Roth IRAs have income restrictions). If you participate in a high-deductible health insurance plan, you might choose to open a Health Savings Account (HSA), which can be a great way to save for medical costs during retirement.