How retirement savings will change in 2025

Published On Dec 29, 2024, 9:30 AM

In 2025, retirement savings will see increased contribution limits for various retirement accounts due to the Secure 2.0 Act. The 401(k) contribution limit will rise to $23,500, with further boosts for older workers. Similarly, IRA contribution limits remain steady, with deductions phased out at higher income levels. Additionally, the income limit for Roth IRA contributions will expand. Social Security benefits will increase by 2.5%, while Medicare premiums will rise, affecting retirees' net income. With auto-enrollment being mandatory for new plans, more employees are expected to save for retirement automatically.