It is never too late to start saving for retirement. Even starting at age 35 means you will have more than 30 years to save and you will benefit from the compound effect of investing in an individual retirement account (IRA).
The type of individual retirement account (IRA) you choose is usually determined by your individual circumstances. A Roth IRA is usually preferred by individuals who do not qualify for tax deductions associated with Traditional IRA contributions and/or by individuals who want their IRA distributions to be tax-free and penalty-free. (Distributions from a Roth IRA are tax-free and penalty-free if certain requirements are met.)

Individuals who are eligible to receive a tax deduction for Traditional IRA contributions may prefer to take the deduction now and realize the benefits upfront (as opposed to later on).

In both 2020 and 2019, you may contribute up to $6,000 to either a Traditional or Roth IRA. Alternately, you may split the $6,000 between the two. Most financial institutions will allow you to contribute small amounts periodically (weekly, monthly, etc.) until you reach your desired amount, provided the total amount does not exceed the contribution limit.

Annuities are also a good means of saving for retirement. Again, the most appropriate choice varies among individuals because everyone's situation is different.

It’s never too late to contribute to your 401(k) account either, assuming your employer offers one.

This question was answered by Denise Appleby (Contact Denise)