Morningstar Outlines Six-Step Hierarchy for Retirement Savings

Christine Benz, director of personal finance and retirement planning for Morningstar, has established a six-step hierarchy designed to optimize retirement savings. The framework prioritizes securing employer matches in company retirement plans first to capture what she describes as "free money."

Following the employer match, the strategy directs investors to contribute to an Individual Retirement Account (IRA) or a Spousal IRA for partners who do not earn an income. The next steps involve maximizing company retirement plan limits and contributing to Health Savings Accounts (HSAs).

Benz further recommends making after-tax 401(k) contributions, which can reach a total of $72,000 in 2026, before finally utilizing taxable accounts for tax diversification. While noting that no one-size-fits-all answers exist, Benz states this structure allows investors to maximize compounding growth and tax advantages based on their specific income levels and plan features.