Retirement savings don’t follow a one-size-fits-all approach. Financial expert and author Anthony O’Neal shared a simple but powerful truth in a post — your age is your secret weapon when it comes to building wealth for retirement.
Below are O’Neal’s tips for making every stage count. While the time you have until retirement looks different at the age of 25 from the time you have at the age of 55, there are opportunities to maximize savings at every life stage.
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Max Out Contributions Early
Starting as early as possible means more time for compound growth. The 2025 limits for employees under 50 are $23,500 for a 401(k) and $7,000 for an IRA, according to Fidelity. Maxing those accounts out will build momentum, especially with an employer match. Setting up automatic contributions makes it even easier to hit those limits by removing the temptation to spend the money instead of saving it.
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Catch Up at 50
Reaching 50 unlocks higher contribution limits. Catch-up contributions allow an extra $7,500 in a 401(k) and another $1,000 in an IRA. That means a total of $31,000 can go into a 401(k) and $8,000 in an IRA every year. This gives people a chance to close the gap if they’ve fallen behind on retirement savings.
Leverage the 60 to 63 Super Boost
New for 2025 is an extra “super catch up” contribution for 60 to 63 year olds, adding another $11,250 to the 401(k) limit. That brings the total possible contribution to $34,750. For high-earners, this is a great last-minute opportunity to add to tax-advantaged accounts. The higher the contributions, the more tax-deferred or tax-free growth can accumulate.
Take Advantage of Smart Tax Strategies
Tax-efficient investing changes with age. Younger people starting out in their careers might benefit from Roth accounts, for example, paying taxes upfront while their income is still growing. High earners in their peak earning years, however, could prioritize pre-tax contributions to reduce taxable income, then shift their strategies later.
Self-employed individuals have even more options. A SEP IRA or Solo 401(k) allows contributions of up to $70,000 in 2025. These accounts provide the flexibility to contribute more in high-income years and less when cash flow is tight.
Making Age Work for Retirement
Retirement savings isn’t a race against time. It’s about using each stage of life to take advantage of different financial strategies. The new 2025 limits provide more room to build wealth, whether just starting out or making final contributions before retirement. Every age has built-in opportunities. The key is knowing when and how to use them.
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This article originally appeared on GOBankingRates.com: Anthony O’Neal: 4 Ways Age Can Be a ‘Superpower’ To Maximize Retirement Savings
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