Could The 'Super Catch-Up' Be Your Ticket To A Richer Retirement? Starting In 2025, 60-Year-Olds Can Save An Extra $11,250

Maximizing savings is at the top of the financial to-do list for most people nearing retirement. For those ages 60-63, the IRS has introduced a "super catch-up" under the SECURE 2.0 Act of 2022, allowing you to maximize retirement savings even further starting in 2025. 

Don't Miss:

• Can you guess how many retire with a $5,000,000 nest egg? The percentage may shock you.
• The number of ‘401(k)' Millionaires is up 43% from last year — Here are three ways to join the club.
• CD Popularity Soars: Over 50 Million Americans Embrace Safe Savings with 5–10% Annual Growth

What Is the Super Catch-Up?

The super catch-up allows individuals aged 60 to 63 to contribute an additional $11,250 to eligible retirement plans, such as 401(k)s, 403(b)s and governmental 457 plans. This is in addition to the standard $23,500 annual contribution limit for 2025 and the $7,500 catch-up limit for those over 50. In total, savers in this age group can contribute up to $34,750 annually, provided their plan supports this option.

Notably, the higher contribution amount isn't on top of the $7,500 regular catch-up limit but replaces it for those in the eligible age range. Christine Benz from Morningstar notes, "If your plan doesn't allow for such contributions yet, be sure to ask your plan administrator if there are any plans to do so."

For those who may feel they've fallen behind on retirement savings, the super catch-up provides a unique chance to make up ground. 

See Also: It’s no wonder Jeff Bezos holds over $70 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.

Depending on your financial strategy, contributions can be made to traditional pretax or Roth accounts. Traditional accounts offer an immediate tax break, while Roth accounts allow for tax-free withdrawals in retirement.

Eligibility and Considerations

The super catch-up applies only to individuals who are 60 and 63 by the end of the calendar year. Future contribution limits will be indexed to inflation, providing ongoing opportunities to adjust for rising costs.

It’s important to confirm that your employer-sponsored plan offers the super catch-up feature. If it doesn't, now might be the time to advocate for plan updates.

Trending: Many are using this retirement income calculator to check if they’re on pace — here’s a breakdown on what’s behind this formula.

Other Retirement Savings Options

If you're already maximizing contributions to your company plan, you may want to explore additional savings avenues:

• IRAs: The 2025 limit remains at $8,000 for those aged 50 and over. While traditional IRAs offer tax-deferred growth, Roth IRAs provide tax-free withdrawals.
• Health Savings Accounts (HSAs): Although not a traditional retirement account, HSAs offer triple tax benefits – contributions are tax-deductible, growth is tax-free and withdrawals for qualified expenses are tax-free.
• Taxable Brokerage Accounts: These accounts have no contribution limits and can provide flexibility in retirement savings.

Whether you're just becoming eligible for the super catch-up or are considering other strategies, now is the time to evaluate your retirement savings plan. Speak with a financial advisor to understand how these changes can work for your goals.

Maximizing contributions during your peak earning years could pave the way for a more comfortable retirement. Starting in 2025, the super catch-up is a significant step in helping individuals close the gap in their retirement savings.

Read Next:

• Studies show 50% of consumers think Financial Advisors cost much more than they do — to debunk this, this company provides matching for free and a complimentary first call with the matched advisor.
• I’m 62 Years Old And Have $1.2 Million Saved. Is This Enough to Retire Stress-Free?