4 Ways To Catch Up on Retirement Savings If You’re Behind
It’s easy to fall behind on retirement savings as other financial priorities compete for your limited dollars. But even if you got a late start on saving, you could still boost your nest egg by thousands of dollars each year to catch up.
Here are several catch-up options, most geared toward mid- or late-career workers who are closer to retirement. Not all retirement plans offer them, so check with your employer.
Age 50+ Catch-Up Contribution
Workers of all ages can contribute to a 457(b), 403(b), and 401(k) plan each year. Those 50 and older can save even more with the 50+ catch-up contribution. Check the latest contribution limits to see how much you could contribute this year.
Super Catch-Up Contributions for Ages 60 to 63
This additional contribution started in 2025 under the SECURE 2.0 Act and is designed for those aged 60, 61, 62, and 63 years old. On top of the standard yearly contribution to 457(b), 403(b), and 401(k) plans, workers in their early 60s can save extra dollars each year. See this year’s contribution limits for the full amount you could contribute.
Special Contributions for 457(b) and 403(b) Plans
Some 403(b) plans offer a special catch-up contribution for workers with 15 or more years of service with the same employer. These employees, no matter their age, can contribute an additional $3,000 per year to the plan, with a lifetime limit of $15,000.
A 457(b) plan may permit even larger catch-up contributions for workers within three years of the plan’s normal retirement age. These pre-retirees can contribute twice the standard annual limit each year. Check with your employer to see if these contributions apply to your plan.
Add More to IRAs
Workers of any age can supplement their savings by contributing to a traditional or Roth IRA.1, 2 Those aged 50 and above can contribute beyond the normal limit. Adding an IRA to your portfolio can help diversify your savings and provide greater flexibility when you start to take withdrawals in retirement. Check contribution limits for how much you may be able to contribute. Note that you must meet certain income qualifications to contribute to a Roth IRA.
Get Your Full Employer Match
No matter your age, you can build savings by making sure you’re contributing enough to a retirement plan to receive any matching contributions your employer may offer. Making the most of this benefit can help increase your savings over time.
1 Contributions: If you contribute to a Roth IRA, you can make tax-free withdrawals if you’ve owned a Roth IRA for at least five years (as defined by the IRS) and meet the requirements for a “qualifying event”: age 59 1/2, a “first-time” home purchase, a disability, or death (with withdrawals going to your beneficiaries). Otherwise, you may have to pay income taxes and penalties to withdraw your earnings. Withdrawals: Roth IRA contributions can be withdrawn at any time without taxes or penalties. If you have a traditional IRA, you may not be able to withdraw your money before age 59 1/2, without paying a penalty. There can be many exceptions to the IRS rules, so carefully research all of your options.
2 Qualified distributions are federal income-tax free, have a five-year holding requirement, and may be withdrawn upon attaining age 59 1/2 or becoming disabled. Nonqualified distributions are subject to federal income tax, which may apply to the earnings portion of IRA assets. Also note that a penalty may apply to non-457(b), 401(a), or 403(b) plan assets rolled into the plan and then withdrawn prior to age 59 1/2.