Catching up on retirement savings can feel daunting, especially if you’ve started late. However, with strategic planning and commitment, it’s entirely possible to build a comfortable nest egg for your future. Here are four actionable steps to help you enhance your retirement savings in 2025.

1. Leverage Catch-Up Contributions

For individuals aged 50 and above, the IRS allows additional “catch-up” contributions to retirement accounts. In 2025, you can contribute an extra $7,500 to your 401(k), 403(b), or similar employer-sponsored plans and an additional $1,000 to your IRA. Moreover, a new “super catch-up” provision permits those aged 60 to 63 to contribute up to $11,250 extra to their 401(k).

Example: Consider Adam, who turns 60 in 2025. With the standard 401(k) contribution limit at $23,500, plus the $11,250 super catch-up, he can contribute a total of $34,750 to his 401(k) that year, significantly boosting his tax-advantaged retirement savings if he can afford to put that much away.

2. Maximize Employer Contributions

Many employers offer matching contributions to retirement plans. Ensure you’re contributing enough to receive the full match, as this is essentially free money added to your retirement fund. Not taking full advantage of this benefit is akin to leaving part of your salary on the table.

Example: If your employer matches 50% of your contributions up to 6% of your salary, and you earn $80,000 annually, contributing 6% ($4,800) means your employer adds an additional $2,400 to your retirement account.

3. Reduce High-Interest Debt

High-interest debts, like credit cards, can erode your ability to save. Prioritize paying off these debts to free up more income for retirement contributions. Once high-interest debts are managed, you can redirect those payments into your retirement accounts.

Example: George, 52, had $10,000 in credit card debt at a 20% interest rate. By focusing on paying off this debt over two years, he freed up funds to increase his monthly retirement contributions by $500.

4. Consider Delaying Retirement (If Feasible)

Working a few additional years can substantially impact your retirement savings. It allows more time to contribute to your retirement accounts, benefit from compound growth, and delay drawing down on your savings. Additionally, postponing Social Security benefits can result in higher monthly payments when you do retire.

Example: Mark planned to retire at 65 but decided to work until 68. During these extra years, he maximized his retirement contributions and delayed Social Security, increasing his benefits by approximately 24%.

While starting late on retirement savings presents challenges, implementing these strategies can significantly improve your financial outlook. But don’t replace tailored advice with general tips! Assess your individual situation and consider consulting a financial advisor to tailor a plan that best fits your needs.