Essential Retirement Planning Strategies in 2025

2025 is a key year to reassess your retirement planning strategy—whether you’re just getting started or fine-tuning your plan. Between new tax law changes, market shifts, and evolving retirement account rules, staying proactive is more important than ever. It’s always a good idea to revisit your savings goals, contribution limits, and overall retirement savings strategy. In this article, we’ll go over some planning methods you should be considering adding to your overall retirement planning strategy. 

Maximize Employer Benefit Plans 

If your employer offers a matching contribution to your retirement plan, take full advantage of it by contributing at least enough to receive the whole match. This strategy can significantly boost your retirement savings over time. Even small increases in your contribution rate can make a big difference in your long-term retirement savings. Prioritizing this step not only accelerates the growth of your retirement fund but also reinforces the habit of consistent saving, a crucial component of a robust financial plan. 

For 2025, the IRS has increased the 401(k) contribution limit to $23,500, and the rules for catch-up contributions have undergone significant updates. While individuals aged 50 and over can contribute the standard catch-up amount of $7,500, a special provision of the SECURE 2.0 Act now applies. Starting this year, if you are aged 60 through 63, you are eligible for a higher catch-up contribution of the greater of $10,000 or 150% of the regular catch-up amount. This change is designed to provide savers with a significant boost in the years leading up to retirement.
 

Consider an Individual Retirement Account (IRA)

Similar to a workplace retirement plan, contributing to an IRA allows your investments to grow with powerful tax advantages. The specific tax treatment depends on the type of IRA you choose. With a Traditional IRA, growth is tax-deferred, while a Roth IRA offers tax-free growth and withdrawals in retirement. 

Whether you choose a Roth IRA or a traditional IRA, the contribution limit is $7,500, with a $1,000 catch-up contribution if you’re over 50.  

Don’t Forget About a Health Savings Account (HSA) 

You should diversify your savings beyond just your retirement accounts. HSAs are a triple-tax-advantaged gem because you can contribute pre-tax dollars, spend them tax-free on qualified expenses, and even invest them.  

Since healthcare is one of the most significant retirement expenses, an HSA is a smart move. After age 65, funds can be withdrawn for any reason without penalty. While withdrawals for qualified medical expenses remain tax-free, any funds used for non-medical expenses will be subject to ordinary income tax, like a traditional 401(k). If you’re eligible, max out that HSA. In 2025, the contribution limits are $4,300 for self-only coverage and $8,550 for family coverage. Additionally, individuals aged 55 or older can contribute an extra $1,000 as a catch-up contribution. 

How KatzAbosch Can Help 

Financial decisions are unique, especially when it comes to retirement planning. There may not be a one-size-fits-all approach to creating a retirement savings plan. Still, by combining and customizing techniques, you can develop a strategy that works specifically for your situation. If you have any questions or require further assistance, please don’t hesitate to contact us using the form below.