Catch-Up Contributions in 2025: A Strategic Advantage for Women Professionals
Retirement planning often takes a backseat amid the demands of career, caregiving, and competing financial goals. But for women professionals—especially those in their peak earning years—2025 presents a key opportunity to accelerate retirement savings.
Contribution limits for 401(k), 403(b), and most 457 plans have increased to $24,500 for individuals under 50. If you’re 50 or older, you can also contribute an extra $7,500 through traditional catch-up provisions.
The SECURE 2.0 Act adds a powerful boost: women between ages 60 and 63 can now contribute the greater of $11,250 or 150% of the standard catch-up amount. If you earn more than $145,000 (adjusted for inflation), these catch-up contributions must be made to a Roth account, allowing for tax-free income in retirement and enhanced flexibility down the line.
To fully leverage these benefits:
Set up automatic increases to your 401(k) savings rate annually or with each salary raise.
Allocate a portion of bonuses or commissions directly to your retirement plan.
Understand your employer's matching rules so you capture every dollar you're entitled to.
Here’s the impact: A 60-year-old woman earning $200,000 who contributes the full $35,750 annually and earns a 7% return could add nearly $478,000 to her retirement portfolio by age 70—translating to roughly $1,900/month in additional income in retirement.
Even if you can’t contribute at the maximum, small adjustments matter. Reassess debt, fund your HSA for future healthcare expenses, and gradually raise your contributions as income grows. A mindful, intentional approach can help close the retirement gap many women face.
Take the Lead in Your Financial Future
You’ve worked hard to get where you are—now it’s time to make your money work just as hard for you. If you’re ready to build a personalized retirement strategy that reflects your goals, values, and real-life obligations, let’s talk.
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