Don’t panic just yet. Even if you’re 65 and haven’t saved for retirement, there’s still a chance to catch up. According to Certified Financial Planner Katharine Perry, it’s never too early or too late to begin saving. The ease or difficulty of reaching your retirement goals hinges on your vision for your future lifestyle.
Understanding 401(k)s and IRAs
Your strategy for managing a 401(k) or IRA is crucial to your retirement plan.
First up: “Maximize any employer-sponsored retirement plan,” suggests Perry. “This means contributing enough to receive the full employer match — and then some.” For 2026, the maximum contribution limit for 401(k) plans is $24,500. If you're 50 or older, you can add an extra $8,000 as a catch-up contribution. Those aged 60 to 63 are eligible for a special “super catch-up,” allowing an additional $11,250. For IRAs in 2026, the contribution cap is $7,500, plus a $1,100 catch-up for individuals over 50.
These catch-up contributions are vital if you’re starting with no retirement savings. It’s not only more money available for investment, but each dollar you put into a standard 401(k) or traditional IRA reduces your taxable income for the year. That’s additional savings!
Another important principle? “Pay yourself first,” emphasizes Kathleen A. Grace, a Certified Financial Planner and author. “This means maximizing your contributions every year. Starting early and benefiting from compounding interest increases your chances of having enough funds throughout retirement.”
Taking advantage of employer matching is also essential. Contribute as much as possible to your company’s 401(k) or retirement plan — at least to the matching threshold. When considering between an IRA and 401(k), assess which plan has an employer match, offers the highest deferral limits, has lower fees, and provides the best investment options, she advises.
