Only 15.2% of eligible workers aged 60-63 contributed extra to 401(k) plans in 2025 despite higher limits.
Workers aged 60 to 63 can contribute up to $35,750 annually to 401(k) plans under SECURE 2.0, but just 15.2% of eligible participants made any catch-up contribution in 2025. The median full-time worker earns $64,000, making the maximum deferral more than half of pretax income and unattainable for most.
The standard 2026 employee deferral limit rises to $24,500 from $23,500 in 2025, with an $8,000 catch-up for those 50 and older. Workers aged 60-63 gain an additional $11,250 catch-up, yet only 8.6% of eligible participants met the standard maximum contribution. Average 401(k) balances for this group stand at $246,500, below Fidelity’s guideline of 8x salary by age 60.
Fidelity’s Q4 2025 data covers 24.8 million participants across 26,200 plans, showing limited uptake despite the provision’s intent to address retirement shortfalls.