Hey, I know keeping up with every financial change each year can feel like a full-time job. And let’s be real — if your New Year’s resolution to boost your retirement savings fell flat, you’re not alone. The good news? It’s not too late. But there are a few new retirement account changes in 2025 that you really can’t afford to ignore.
These changes don’t have anything to do with COLA increases or pushing your retirement date further down the road. They’re updates to how your retirement plans work — and missing them could leave you with a lot less money down the line.
Here are the three big ones you need to know right now.
1. Your plan might be auto-enrolling you, but the default may not be enough
Since January 1, 2025, many new 401(k) and 403(b) retirement plans are required to auto-enroll employees at a 3% contribution rate. This rate bumps up by 1% each year until it hits between 10% and 15%.
But not all employers have to follow this rule. Yours might be exempt if:
- The company had a plan in place before 2025
- It’s a small business with 10 or fewer employees
- It’s less than three years old
- It’s a church or government plan
If your plan isn’t auto-enrolling — and you haven’t signed up manually — you might not be saving at all. That’s money you’re missing out on now and later, especially if your employer offers a 401(k) match.
And even if you are auto-enrolled, don’t assume 3% is enough. Most experts suggest saving 10% to 15% of your income if possible. It’s okay to start small, but if you can afford more than 3%, bump it up. Every little increase now can mean thousands more in retirement.
2. New catch-up contributions for ages 60–63
If you’re between 60 and 63 years old, here’s a golden opportunity for you: In 2025, you can contribute up to $11,250 extra to your 401(k), on top of the $23,500 standard limit. That brings your total limit to $34,750.
This special window only applies to people aged 60 to 63 — once you turn 64, you’re back to the usual $7,500 catch-up limit. If you’ve got the wiggle room in your budget, this is the year to go all in. Even if you can’t hit the max, adding whatever you can will help make retirement more comfortable.
3. Part-time workers can join 401(k)s sooner
Until now, if you worked part-time, you had to wait three years (with at least 500 hours each year) before your employer had to let you into their 401(k) plan.
Starting in 2025, the waiting time has dropped to just two years.
If you’re a part-time worker — or know someone who is — this is a major shift. Whether you’re doing part-time work by choice or necessity, you deserve access to retirement savings tools, too. Even a modest contribution can grow into something significant by the time you’re ready to stop working.
Why this matters more than you think
Changes to retirement accounts happen every year — sometimes it’s just new contribution limits, and other times it’s big rule changes like these. Staying in the loop ensures you’re making the most of your hard-earned money.
Whether you’re just getting started or closing in on retirement, these 2025 changes are your chance to play smarter, not harder. Make sure you’re enrolled. Check your contribution rate. And take full advantage of what the rules allow this year — your future self will thank you.
Need help figuring out how to boost your savings with these changes? I’m here for that too.
Read now:
These are the four moves to retire in 2025 that can make you a millionaire in 2050
