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## Retirement Savings: Are You on Track?
U.S. adults have delayed or plan to delay retirement, according to a New York Life survey that polled roughly 2,300 adults in September 2024. the top two reasons were not enough savings and inflation.
So-called “defined contribution plans,” which include 401(k)s, are the primary retirement savings tool for many private sector U.S. workers. These plans covered over 103.3 million participants in 2023,according to a September 2024 report from the Department of Labor.
## Most don’t max out 401(k) plans
“Higher [401(k)] deferral limits are helpful, but only if contributions are actually adjusted,” Um said.
In 2024, some 45% of participants boosted 401(k) deferrals – on their own or as part of their plan’s automatic increases – according to vanguard’s 2025 How America Saves report, which is based on more than 1,400 plans and nearly 5 million participants.
Though, only 14% of participants maxed out their 401(k)s in 2024, and the average combined savings rate, including employer deposits, was an estimated 12%, according to the same report.
“We’re encouraging clients to revisit this early in the year,” um said.
## Roth catch-up contributions for higher earners
If your age 50 and older, your 401(k) catch-up contributions can be customary pretax or after-tax Roth, depending on what your plan allows.Starting in 2026, certain higher earners must make Roth catch-up contributions, based on a Secure 2.0 Act of 2022 change.
Neil Krishnaswamy, a CFP and president of Krishna Wealth Planning in McKinney, Texas, has talked with clients about the 401(k) change.
In 2026, your 401(k) catch-up contributions generally must be Roth if you earned more than $150,000 from the same employer in 2025. You can find out if this applies to you by reviewing the gross income on your final 2025 paystub, Krishnaswamy said.
But the “Roth mandate” doesn’t apply this year if you started a new job on Jan. 1, 2026, “even if you earned $1 million at your previous firm,” he said.You’re also exempt if you exceeded the $150