Lots of people put off starting to save for retirement. We can’t blame them, even the first step is complicated. How do you know you’re picking the right account? Which investment vehicle should you choose? How will it all look decades down the line?

As with anything, taking that first step is the most important thing you can do!

If you’re still a little confused but you do have access to a 401(k) account, you should always opt for it. You’ll be one of the lucky ones as not all employers offer them, so take advantage while you can!

In order to help in your decision-making process, we’ve prepared a list of 5 ways your 401(k) will catapult you to your goals!

High contribution amounts

How much you save over the years will obviously have an impact on how much you spend during retirement. The higher the limit to what you can set aside, the better. Even if you can’t reach that ceiling right now, years down the line your income could be significantly bigger, so much so that an IRA’s limit of $6,000 a year would feel constraining.

Comparatively, 401(k) accounts allow you to set aside $19,500 each year, but you can add $6,500 more per year if you’re over the age of 50, known as catch-up contributions.

If you earn 8% a year on the $6,500 contributions to your IRA, in 20 years you’ll have amassed $297,000. In the same amount of time, 8% earnings on your 401(k) plan’s $19,500 contributions, you’ll have $964,000.

You could argue that contribution limits to IRAs have risen over the years, but it’s unrealistic to believe they’ll come anywhere near the limits for 401(k) plans.