01.23.26

Just 5 Percent of Eligible Investors Make Retirement Plan Catch-Up Contributions

by: Tracey Longo

Only 5% of eligible workers age 50 and older make retirement plan catch-up contributions, according to research from the Public Retirement Research Lab, representing a major missed savings and tax-planning opportunity. In 2023, 36% of contributors were eligible, yet participation remained minimal — even among high earners. Under SECURE 2.0, workers earning over $150,000 must make catch-up contributions on a Roth (after-tax) basis starting in 2026, increasing the cost of inaction but offering tax-free growth and withdrawals. While nearly all 401(k) plans now offer Roth options, usage remains low, underscoring the need for advisor guidance to boost participation and optimize retirement outcomes.

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