Vanguard and Fidelity report low participation in 401(k) super catch-up contributions
Updated
Updated · MarketWatch · Apr 29
Vanguard and Fidelity report low participation in 401(k) super catch-up contributions
13 articles · Updated · MarketWatch · Apr 29
Only 9% of eligible Vanguard clients and 11% of Fidelity clients maximized the $34,750 super catch-up contribution for workers aged 60 to 63 in 2025.
Most workers cannot afford these contributions, with the median income for this age group at $83,770. Limited awareness and the narrow eligible age range further restrict participation.
Super catch-up contributions, introduced by Secure 2.0 legislation, mainly benefit high earners, while most older workers save far less. Many Americans remain uncertain about retirement timing as financial pressures persist.
What alternatives exist for workers who cannot afford to maximize their 401(k) contributions in their early 60s?
Could mandatory employer matches or auto-escalation features make a bigger difference in retirement outcomes than optional catch-up increases?
How does the new Roth-only rule for high earners over 50 change the tax benefits of catch-up contributions in 2026?
How might employers and HR teams better communicate complex retirement plan changes to increase participation?
Given widespread financial anxiety and low literacy, could better education have a bigger impact than raising contribution limits?