Action Plan for Hitting Age 50
Turning 50 simply means you have more room to save. Even small increases can make a big difference over the next 10–20 years. Here’s how to make the most of it:
- Increase Contributions Slowly: You don’t need to max out your accounts overnight. Even a modest increase in your contributions can grow your nest egg significantly over time, thanks to compound interest.
- Consolidate Old 401(k)s: If you’ve changed jobs a few times, now’s a great moment to roll those old 401(k)s over and bring them together for simpler management.
- Check Your Investment Mix: Your goals may shift in your 50s. Ensure your portfolio’s allocation aligns with your retirement timeline and risk tolerance.
- Automate Everything: You can even set up automatic contributions to help you save consistently
Tips to Make the Most of Your 2026 Contributions
Taking full advantage of your retirement accounts in 2026 can give your savings a real boost. Here are some practical steps to help you make the most of your 401(k) and IRA this year:
- Set a Reminder: Update your contributions early in January 2026 to take full advantage of the new limits all year.
- Prioritize the Match: If your employer offers a matching contribution, try to capture the full match before increasing your 401(k) catch-up contributions.
- Use Both Accounts: Maximize your savings by reviewing and contributing to both your 401(k) and your IRA.
- Remember Your Timeline: If you feel behind, remember: many people make their strongest retirement progress in their 50s due to higher earning potential and access to these higher contribution limits.
PensionBee Helps You Maximize Catch-Up Contributions
Turning 50 in 2026 isn’t just a milestone, it’s an opportunity to maximize your retirement savings. Whether you’re catching up on savings or looking to strengthen your long-term goals, these additional dollars can help you build a stronger, more confident financial future.
PensionBee helps make it simple to bring all your old 401(k)s and IRAs into one easy-to-manage account, and you’ll receive a 1% match on every rollover or contribution (terms and conditions apply). Many rollovers happen automatically, but if yours needs extra attention, our personal rollover managers, called BeeKeepers, are ready to guide you every step of the way. Your investments are in diversified portfolios with ETFs like SPY and MDY from State Street Investment Management, one of the world’s largest asset managers.
Frequently Asked Questions (FAQs)
1. Do I need to wait until my actual 50th birthday to make catch-up contributions?
No. According to IRS rules, you are eligible to make catch-up contributions for the entire calendar year in which you turn 50, regardless of the month your birthday falls in.
2. Can I make catch-up contributions to both a 401(k) and an IRA?
Yes. These are separate contribution limits that do not affect each other.
2025
IRA:
- Standard contribution: $7,000
- Catch-up contribution (age 50+): $1,000
- Total possible contribution: $8,000
401(k):
- Standard contribution: $23,500
- Catch-up contribution (age 50+): $7,500
- Total possible contribution: $31,000
2026
IRA:
- Standard contribution: $7,000
- Catch-up contribution (age 50+): $1,000
- Total possible contribution: $8,000
401(k):
- Standard contribution: $24,000
- Catch-up contribution (age 50+): $8,000
- Total possible contribution: $32,000
3. What is the difference between a standard and catch-up 401(k) contribution?
The standard contribution is the annual limit available to all eligible savers. The catch-up contribution is an additional amount that only those aged 50 and over can contribute, on top of the standard limit.
4. Do income limits affect IRA contributions?
Yes. While you can always contribute, your income may affect the tax treatment. For 2026, income limits apply to the deductibility of Traditional IRA contributions and the ability to contribute to a Roth IRA.
5. Is it too late to start saving seriously at 50?
Not at all. Americans in their 50s often have higher incomes, which can help with making catch-up contributions.
