For the first time, people ages 60 to 63 will be able to supersize catch-up contributions to 401(k)s and similar workplace plans beyond the maximum for other savers 50 and older, powering the push to accelerate savings in the years just before retirement. The new catch-up contribution limit for this age group for 2025: $11,250, compared to $7,500 for employees ages 50 to 59 or 64 and older.
People at this stage of life may be in their peak earning years, may have paid off their mortgages and often have college funding in the rearview mirror, said Christine Benz, director of personal finance and retirement planning at Morningstar.
This flurry of welcome developments comes amid global turmoil, but offers retirees and those close to retirement a chance to supercharge their savings, cut drug costs, and potentially raise their credit scores.
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