Retirement planning isn’t a sprint—it’s a marathon. But what if you feel like you’re lagging behind? Whether you started saving late or want to build a bigger nest egg, the good news is that there are new opportunities to catch up, thanks to the SECURE 2.0 Act.
Starting in 2025, individuals aged 60 to 63 will have access to the super catch-up contribution, a game-changer for retirement savers. Let’s dive into what this means and how you can take full advantage of it.
What Is the New Super Catch-Up Contribution for Retirement?
The super catch-up contribution is an enhanced savings opportunity for those aged 60 to 63 who participate in a 401(k), 403(b), governmental 457(b), or SIMPLE IRA plan. It allows you to contribute more than the regular limits, giving you a chance to significantly boost your retirement savings during this critical window.
For non-SIMPLE plans in 2025:
- The contribution limit will be the greater of $10,000 or 150% of the standard catch-up limit for 2024, adjusted for inflation.
- This brings the total contribution limit up to $34,750 in 2025.
For SIMPLE plans:
- The contribution limit will be the greater of $5,000 or 150% of the standard catch-up limit, adjusted for inflation.
Starting in 2026, these limits will continue to adjust for inflation, ensuring they remain impactful over time.
How Do Super Catch-Up Contributions Work?
Here’s an example to make it real: Chuck, age 59, is determined to make up for lost time. In 2025, Chuck turns 60, making him eligible for the super catch-up contribution. Instead of being limited to the standard $7,500 catch-up contribution, Chuck can contribute up to $11,250. This allows him to save a total of $34,750 in his 401(k) for the year—a significant boost toward his retirement goals.
Why This Extra Contribution Window Matters for Retirement Planning
For many, ages 60 to 63 are peak earning years. The super catch-up provision recognizes this by offering a way to maximize retirement contributions when you might have the most financial flexibility. These extra contributions can provide meaningful growth to your retirement savings, especially when combined with potential employer matches and compound interest.
3 Tips to Maximize Your Retirement Contributions Now
- Start Early: Don’t wait until 2025 to optimize your contributions. Begin maximizing your current contributions now.
- Check Your Plan’s Rules: Make sure your employer’s retirement plan allows for these enhanced contributions.
- Consult a Professional: Work with a financial advisor to create a strategy tailored to your situation.
Need Help Catching Up on Retirement Savings?
Taking full advantage of super catch-up contributions can make a significant difference in your retirement readiness. At Capital Wealth Management, we can help you create a tailored approach that aligns with your goals. Whether you need assistance with retirement planning, investment management, or financial planning, we’re here to guide you every step of the way. Schedule an introductory meeting today to get started.
Kelsey Conklin is a CERTIFIED FINANCIAL PLANNER® professional who helps individuals and families plan for their financial future. Based in Glastonbury and Wilton, CT, she also specializes in financial planning for women, guiding her clients through divorce, widowhood, career transitions, caregiving responsibilities, retirement planning, investing, and managing longevity risks. As a female financial advisor, Kelsey is passionate about financial empowerment for women and provides personalized financial strategies designed to help women take control of their wealth with confidence and clarity. Whether you’re navigating major life changes or planning for retirement, she is committed to providing guidance tailored to your unique goals. Schedule a complimentary Women and Wealth introductory meeting with Kelsey and start building a financial plan designed for you.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete, it is not a statement of all available data necessary for making an investment decision and it does not constitute a recommendation.
Prior to making an investment decision, please consult with your financial advisor about your individual situation. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.