For 2025, the "super" catch-up contribution limit for 401(k), 403(b), and most 457 plans is $11,250, applicable specifically to individuals aged 60 through 63. This allows eligible workers to make a total employee elective deferral of up to $34,750 ($23,500 standard + $11,250 super catch-up). This is a, SECURE 2.0 Act provision designed to boost retirement savings for older workers.
For the financial year 2025-26, the concessional super contribution cap is $30,000. This means you can contribute up to $30,000 to your super fund from your pre-tax income without incurring additional taxes.
401(k) contribution limits for 2025
Those between ages 60 and 63 are eligible to contribute up to $11,250 as a "super" catch-up contribution in lieu of the $7,500, if your plan allows.
If you contribute to a TDA, 403(b) Thrift and/or 401(k), then generally the total amount contributed to all plans may not exceed $23,500 ($31,000, if age 50 or older; $34,750, if attaining age 60, 61, 62 or 63 in 2025). Exceptions apply to certain 403(b) plan participants and governmental 457(b) plan participants.
The basic SIMPLE IRA employee contribution limit is $16,500. Those age 50 to 59 or age 64 and older can save an additional $3,500 as a catch-up contribution. Those age 60 to 63 can save $5,250 as a "super" catch-up contribution.
Calendar year 2025: The dollar limit is $203,383 at age 60. The dollar limit is $238,397 at age 65.
To decide whether to max out your 401(k) or IRA, prioritize getting your full employer 401(k) match first, then max out a Roth IRA for tax-free growth and flexibility, and finally return to your 401(k) to save more, keeping in mind that 401(k)s offer higher limits but IRAs provide more investment choice, and Roth IRAs offer tax-free retirement withdrawals.
Maximum monthly benefits increase
The Social Security Administration sets a limit for the maximum monthly benefit a worker can receive if they retire at full retirement age. In 2025, the maximum monthly benefit for a worker retiring at full retirement age was $4,018. That limit will increase to $4,152 in 2026.
The 401(k) "Rule of 55" allows penalty-free (but still taxable) withdrawals from your current employer's 401(k) if you leave your job in the year you turn age 55 (or 50 for certain public safety workers), bypassing the usual 10% early withdrawal penalty for distributions before 59½, but it does not apply to IRAs or rollovers, so don't roll over funds if you plan to use this exception, say Fidelity Investments and this article from Charles Schwab. You must separate from service in the qualifying year, and the distribution must come directly from that specific employer plan, not an IRA.
On 1 July 2025, the Superannuation Guarantee (SG) – the minimum contribution your employer must make into your super fund – increased from 11.5% to 12% of your base earnings (or ordinary time earnings).
Any contributions you make over the cap will be taxed at your marginal rate, less a 15% tax rebate. You may also be charged interest.
The "super catch-up" for 2025 refers to an enhanced retirement savings contribution available under the SECURE 2.0 Act for individuals aged 60 to 63, allowing them to contribute an extra $11,250 (beyond the standard $7,500 catch-up) to plans like 401(k)s and 403(b)s, if their employer plan allows it, enabling total contributions of up to $34,750. This higher limit is optional for plan sponsors and applies only to those turning 60, 61, 62, or 63 during the calendar year, reverting to the standard catch-up at age 64.
Only a small percentage of Americans retire with $1 million or more in retirement savings, with figures from the Federal Reserve and Employee Benefit Research Institute (EBRI) showing around 3.2% of retirees hitting that mark, though some sources cite slightly lower numbers for all Americans (around 2.5%) or higher estimates for households nearing retirement (over 10% of older households have $1M+ net worth, not just retirement funds). The reality is most retirees have significantly less, with the median for ages 65-74 being around $200,000-$609,000 in retirement accounts.
They separated households that met the accredited investor definition into those with $1 million or more in qualified savings, which they dubbed “401(k) millionaires,” and all other accredited investor households.
Yes, you can live off the interest/returns from $500,000, but it depends heavily on your lifestyle and expenses, with the common 4% rule suggesting about $20,000 annually, which may require a frugal lifestyle, relocation, or significant Social Security income to supplement. With smart investing (e.g., balanced stock/bond mix) and minimal spending, it's feasible for many, but living in a high-cost area or with high expenses would make it difficult.
Are Roth IRAs safe? No investment account is ever 100% safe, but because retirement accounts are generally long-term investments, they offer the possibility of growth over time. Also, the more years you invest in a traditional or Roth IRA, the more time that retirement account may have to recover from any losses.