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It’s not too late to contribute more

If you’re just five to 10 years out from retirement, the finish line is within sight. With each lap around the sun, you should take the pulse of your retirement goals, savings strategy and account balances. And if you feel that you are trailing behind on your financial plans, you still have time to bump up your account with increased contributions.

Do you really need to contribute more?

If you’ve only been contributing a small percent and not taking advantage of your company’s matching contributions, if available, you might find yourself with a shortfall in your retirement account. If so, consider doing the following:

  • Increase your contribution, even if it’s just by 1% per year
  • Max out your contributions if you’re able
  • Make catch-up contributions if you’re over age 50

If you’ve been contributing regularly to your retirement account over the years, taking advantage of any company match, if available in your plan, and maxing out your contributions, consider working with a financial professional to explore other retirement preparation option

Maximum contribution amounts

Each year the Internal Revenue Service (IRS) evaluates contribution limits for employee benefit plans, including retirement accounts. As a result, cost of living adjustments may be made to retirement account contribution limits. As you plan for retirement, it may be helpful to understand the current contribution limits. If you can, maximize your retirement plan contributions. That way you’ll maximize the income you’re able to receive when you start taking distributions from your retirement account.

Catch-up contributions

Because not everyone is able to contribute the maximum amount to their retirement plan in their 20s and 30s, and even into their 50s, concessions have been made to the contribution rules. Catch-up contributions allow anyone age 50 and older to kick in an extra amount above and beyond the maximum levels. If you are age 50 or older and maximizing your retirement account contributions, you may want to consider making a catch-up contribution as you enter the homestretch of retirement preparation.


The important takeaway is that you can still increase your contributions, right up to the time that you retire.


  • 2024 salary-deferral 401(k) contribution limits

    Individual plan participants can contribute up to $23,000 of their wages in 2024.


    Those age 50+ may have the ability to contribute an additional $7,500 as a “catch-up” contribution.

OneAmerica Financial is the marketing name for the companies of OneAmerica Financial. Non-registered group annuity contracts are issued by American United Life Insurance Company® (AUL), a OneAmerica company, One American Square, Indianapolis, IN 46282, 1-800-249-6269. Group annuity contracts are issued by AUL and registered variable annuity products are distributed by OneAmerica Securities, Inc., a Registered Investment Advisor, Member FINRA, SIPC, One American Square, Indianapolis, IN 46282. Not available in all states or may vary by state. Provided content is for overview and informational purposes only and is not intended as tax, legal, fiduciary, or investment advice.