US. These workers are allowed to save $35,000 a year in their 401(k)s. Here’s how many actually do it.
Super catch-up contribution rates are low: ‘Most people don’t have that kind of discretionary income’
Super catch-up contributions — which allow older workers to pack their 401(k) accounts to the tune of nearly $35,000 a year — might be a little less than super when it comes to participation rates, in part because most workers can’t afford to make them.
Under the Secure 2.0 legislation passed by Congress in 2022, people ages 60 to 63 who participate in workplace retirement plans could contribute $3,750 in extra funds to their nest egg starting in 2025. That was on top of their regular contribution of $23,500, as well as the standard catch-up contribution for people over 50 of $7,500. As a result, those eligible for super catch-up contributions could contribute a total of $34,750.
“Super catch-up contributions were poorly designed. They are inaccessible to most people,” said David Schneider, a financial adviser and founder of Schneider Wealth Strategies. “Saving $34,750 is about half of older households’ income.”
The median household income for people ages 60 to 64 was $83,770 in 2025, according to the U.S. Census Bureau.
At Vanguard, among eligible workers in plans that offered the super catch-up feature, 21% hit the main contribution limit of $23,500, and more than 90% of those people also made some catch‑up contributions. A total of 13% of Vanguard’s clients contributed above the standard $7,500 catch-up contribution limit and 9% maxed out at the highest possible amount of $34,750, the investment firm said.
At Vanguard, about one‑quarter of catch‑up savers directed some portion of their contributions to a Roth account, which the firm said signaled growing interest in tax diversification and long‑term flexibility.
Meanwhile, at Fidelity, about 11% of workers who qualified made some super catch-up contributions. Nearly 70% of those people made the full contribution of $34,750, the investment firm said.
“I’m surprised the levels are that high, actually,” said Kelly Gilbert, a financial adviser and owner of EFG Financial. “Most people are only setting aside 6% in their retirement plans because that maximizes their employer-match. Catch-ups don’t come into play too often.”
According to Vanguard’s “How America Saves 2025” report, Americans saved an average of 7.7% of their paycheck in their work-based retirement plan last year. Only 14% of participants contributed the annual maximum.
People ages 60 to 63 are typically on the cusp of retirement. The super catch-up contributions were intended to help that demographic set aside extra money just as they prepare for retirement. The average retirement age in the U.S. is 62, according to a 2024 Mass Mutual survey.
