{"id":7758,"date":"2024-11-12T12:13:14","date_gmt":"2024-11-12T12:13:14","guid":{"rendered":"https:\/\/finderica.com\/retirement-rule-changes-coming-in-2025-heres-how-you-can-save-more-money\/"},"modified":"2024-11-12T12:13:14","modified_gmt":"2024-11-12T12:13:14","slug":"retirement-rule-changes-coming-in-2025-heres-how-you-can-save-more-money","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=7758","title":{"rendered":"Retirement rule changes coming in 2025 \u2014 here’s how you can save more money"},"content":{"rendered":"
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Baona | E+ | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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More from FA Playbook:<\/h2>\n
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Here’s a look at other stories impacting the financial advisor business.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Starting in 2025, investors age 60 to 63 can make catch-up contributions of up to $11,250 on top of the $23,500 deferral limit. Combined, these workers can defer a total of $34,750 for 2025, which is about 14% higher than 2024.<\/p>\n

“This can be a great way for people to boost their retirement savings,” certified financial planner Jamie Bosse, senior advisor at CGN Advisors in Manhattan, Kansas, previously told CNBC.<\/p>\n<\/div>\n

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This can be a great way for people to boost their retirement savings.<\/p>\n

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Jamie Bosse<\/p>\n

Senior advisor at CGN Advisors<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n

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Roughly 4 in 10 American workers are behind in retirement planning<\/a> and savings, primarily due to debt, insufficient income and getting a late start, according to a CNBC survey, which polled roughly 6,700 adults in early August.<\/p>\n

For 2025, the “defined contribution” limit for 401(k) plans, which includes employee deferrals, company matches, profit-sharing and other deposits, will increase to $70,000<\/a>, up from $69,000 in 2024, according to the IRS.<\/p>\n<\/div>\n

<\/a>How much older workers save for retirement<\/h2>\n
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The 401(k) catch-up contribution change is “very good” for older workers who want to save more for retirement, said Dave Stinnett, Vanguard’s head of strategic retirement consulting.<\/p>\n

Some 35% of baby boomers<\/a> feel “significantly behind” in retirement savings, according to a Bankrate survey that polled roughly 2,450 U.S. adults in August.<\/p>\n

“But not everyone age 50 or older is maxing out [401(k) plans] already,” Stinnett said.<\/p>\n

Only 14% of employees deferred the maximum<\/a> amount into 401(k) plans in 2023, according to Vanguard’s 2024 How America Saves report, based on data from 1,500 qualified plans and nearly 5 million participants.<\/p>\n

The same report found an estimated 15% of workers made catch-up contributions in 2023.<\/p>\n

Deferral rates for 401(k) plans typically increase with income and age, Vanguard found. Participants under age 25 saved an average of 5.4% of earnings, while workers ages 55 to 64 deferred 8.9%.<\/p>\n<\/div>\n

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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Baona | E+ | Getty Images More from FA Playbook: Here’s a look at other stories impacting the financial advisor business. Starting in 2025, investors age 60 to 63 can make catch-up contributions of up to $11,250 on top of the $23,500 deferral limit. Combined, these workers can defer a total of $34,750 for 2025,<\/p>\n","protected":false},"author":1,"featured_media":7759,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[173,255,104,350,75,103],"class_list":{"0":"post-7758","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-coming","9":"tag-heres","10":"tag-money","11":"tag-retirement","12":"tag-rule","13":"tag-save"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7758"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7758\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/7759"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}