How To Build Your Retirement Savings From Scratch in 2026

Core Insights - The article emphasizes the importance of starting retirement savings as soon as possible, highlighting that delaying this process makes it increasingly difficult to accumulate sufficient funds for retirement [1]. Group 1: Current Retirement Savings Landscape - Federal Reserve research indicates that the average retirement savings for Americans aged 65 to 74 was $200,000 in 2022, significantly lower than the recommended $560,000 by Fidelity, which suggests saving about nine times one's annual salary by age 65 [2]. Group 2: Strategies for Building Retirement Savings - Creating a budget is essential for determining how much can be contributed to retirement savings each month, with a recommendation to save 10% to 15% of income, and 20% or more if starting at age 40 or older [3][4]. - Paying down debt, particularly credit cards and consumer debt, is advised as it provides a risk-free return through interest saved, which is often better than market returns [5][6]. - Setting up a retirement account is crucial, with options including a company-sponsored 401(k) or an individual retirement account (IRA). The maximum contribution for a 401(k) in 2026 is $24,500 [7].