Retirement planning has several steps, with the end goal of having enough money to quit working and do whatever you want. Our aim with this retirement planning guide is to help you achieve that goal.

1. Know when to start retirement planning.

When should you start retirement planning? That’s up to you, but the earlier you start planning, the more time your money has to grow. That said, it’s never too late to start retirement planning, so don’t feel like you’ve missed the boat if you haven’t started. Even if you haven’t so much as considered retirement, every dollar you can save now will be much appreciated later. Strategically investing could mean you won’t be playing catch-up for long.

2. Figure out how much money you need to retire.

The amount of money you need to retire is a function of your current income and expenses, and how you think those expenses will change in retirement, and how they won’t. For example, Washington Post columnist Michelle Singletary suggests people set a retirement budget, because you’ll probably still want to take vacations, go out to dinner, and you may still have car or home maintenance costs. The typical advice is to replace 70% to 90% of your annual pre-retirement income through savings and Social Security.

• For example, a retiree who earns an average of $63,000 per year before retirement should expect to need $44,000 to $57,000 per year in retirement.

» Go deeper: Use NerdWallet’s free retirement calculator

3. Prioritize your financial goals.

Retirement is probably not your only savings goal. Lots of people have financial goals they feel are more pressing, such as paying down credit card or student loan debt or building up an emergency fund. It’s a good rule if thumb to save for retirement while you’re building your emergency fund — especially if you have an employer retirement plan that matches any portion of your contributions.

4. Choose the best retirement plan for you.

A cornerstone of retirement planning is determining not only how much to save, but also where to save it.

• If you have a 401(k) or other employer retirement plan with matching dollars, consider starting there.
• If you don’t have a workplace retirement plan, you can open your own retirement account.

There is no single best retirement plan, but there is likely a best retirement plan or combination of retirement accounts for you. In general, the best plans provide tax advantages, and, if available, an additional savings incentive, such as matching contributions. That’s why, in many cases, a 401(k) with an employer match is the best place to start for many people.

Some workers are missing out on that free money. Section 101 of the Secure 2.0 Act ^[2] noted that Black, Latinos and lower-wage employees were less likely to participate in their work’s retirement plan compared with their colleagues. A new provision in the law establishes automatic enrollment in retirement plans to help increase participation for all employees.

If you don’t have access to a workplace plan (or the one you’re offered doesn’t come with a match), or you’re already contributing to a 401(k) and you’re looking for the best options for additional retirement savings, you may want to consider an IRA. This is a plan you open yourself at an online broker or other account provider. An IRA is hardly a consolation prize.

Here are seven types of retirement plans that might work for you. Click the links to read more about how each one works.

• 401(k)
• Roth IRA
• Traditional IRA
• Self-directed IRA
• Simple IRA
• SEP IRA
• Solo 401(k)

» Go deeper: Read more about how to choose a retirement account