The sooner you can put some money away, the faster money will start to grow! If you can consistently contribute to your retirement account (s), you might just have a nice nest egg when you need it. Start small ... say 5% of your income. Then, gradually increase it if possible.

Fortunately, there are several resources to help extend your contributions beyond Social Security.

A resource is a 401 (k) plan. If your employer offers a traditional 401 (k) plan that you are eligible for, you can choose an amount to contribute out of each paycheck. This amount is not considered income, so it is not taxed at the moment, but becomes taxable when the money is distributed. Some employers even offer their own contributions, which is a nice bonus. To be qualified, you must be 21 years of age or older, have worked in the company for at least one year and logged over 1,000 hours. Ask your employer about their 401 (k) plan and whether they offer other retirement plans, such as a retirement plan or Safe Harbor 401 (k).

A traditional IRA offers a fantastic tax advantage. The money that you put into a traditional IRA, whether it be income and deductible contributions, is deferred, which means you won't be taxed on that money right away. When you start withdrawing money from the IRA, you will be taxed. However, by the time you are ready to retire, you may be retired and sit in a lower tax bracket. There is an annual maximum contribution on a traditional IRA that is $ 5,000 or less.

A Roth IRA works differently where you pay taxes on your income that you put into your Roth IRA, but when it's time to retire, there are no taxes owed. You can withdraw contributions at any time without penalty or tax consequences.

Mutual fund investments give you access to a large number of stocks or bonds by pooling your money with other investors. Investment companies benefit because they can use the assets to buy securities to meet the company's goals. There are literally thousands of investment companies and some are riskier than others. For example, you might choose to square funds invest in a large, stable company that consistently gets a profit or invest in a smaller company that offers cheaper shares in the hope that they will grow positively.

Finally, a good old fashioned savings account is an option, but it is likely that your money will not grow as fast as some of the other options.

The key points are that saving for retirement right away is a good step. Do your research and talk to your employer, your financial planner and experienced friends and family members! Determine the best fit for you so you can retire.

Author's Bio: 

The key points are that saving for retirement right away is a good step.