Age-40 Investors Get 25-Year Retirement Roadmap With $24,500 401(k) Cap

3 articles · Updated · Forbes · Jun 27

$24,500 is the 2026 401(k) contribution limit highlighted in new guidance for people starting retirement investing at 40, framing a late start as manageable rather than fatal.
Twenty-five years until age 65 still leaves meaningful compounding time: the article says $50,000 growing at 9% could top $400,000 over roughly three doubling periods, before new contributions.
The guidance prioritizes capturing the full employer match, then using traditional or Roth IRAs up to the $7,500 combined 2026 limit, while keeping a diversified stock-heavy allocation instead of chasing speculative bets.
High-interest debt above 20% should be attacked alongside a small emergency fund, with payroll deductions and automatic transfers used to make saving the default habit.
Median retirement balances for ages 35 to 44 were $45,000, while 58% of millennials said they were still recovering from the pandemic and 59% cited debt as a barrier, underscoring why many are only starting now.