10 Concrete Ways to Save More for Retirement in 2025
No matter who you are, you're probably continuously plagued by the vague pressure to "save more." But making personal finance progress requires not just hopeful ambition, but identifying concrete steps to take.
Consider the actionable difference between a undefined intent to “save more!” and, say, telling yourself “I am going to max out my Roth IRA this year,” and you'll see why it's important to define your goals. And if you're looking for concrete steps, I've got you covered: Here are 10 steps you can take to actually increase your retirement savings this year.
Max out your employer-sponsored retirement plans
For 2025 the IRS has increased the contribution limits for 401(k) plans to $23,500, up from $23,000 in 2024. Chances are good your employer offers some kind of 401(k) percentage match that can help you grow your savings. Even if you can't boost your savings all the way to $23,000 (ambitious!), if you're not already contributing enough to get your employer's full match, make this your first priority—it's essentially free money and can significantly boost your retirement savings over the long term.
Leverage catch-up contributions
If you're 50 or older, you're eligible for catch-up contributions in both your 401(k) and IRA accounts. These additional allowances can help you accelerate your savings during your peak earning years. In 2025, employees aged 60 to 63 will be able to make larger catch-up contributions to their 401(k) plans, with new limits set at either $10,000 annually or 150% of the standard catch-up contribution limit—whichever is greater.
Optimize your investment strategy
Contributing is great, but you need to make sure your money is being invested in line with your goals, so consider reviewing and rebalancing your investment portfolio. While maintaining a diversified approach, look into different investment vehicles that align with your risk tolerance and time horizon. This might include a mix of:
Low-cost index funds for broad market exposure
Target-date funds that automatically adjust risk as you approach retirement
Individual stocks or bonds if you have the expertise to manage them
Automate your savings
The most important part of saving is consistency, so set up automatic contributions to your retirement accounts. This "pay yourself first" approach ensures consistent saving and helps avoid the temptation to spend money that should be set aside. I recommend spacing out your auto-contributions so your bank account doesn’t take one big hit on the first of the month, every month.
Setting up auto-pay is simple to do online, and is usually just a matter of signing in to all of your accounts and finding the right menu. Once you do, it’s time to get specific: Decide how much to contribute and when those payments should go out. Consider automatically increasing your contribution percentage each year, even by just 1%, to gradually build your savings without making too an significant impact on your monthly budget.
Max out your Health Savings Accounts (HSAs)
If you have a high-deductible health plan, maximize contributions to your HSA. These accounts offer triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. After age 65, you can use HSA funds for non-medical expenses without penalty, making it an excellent additional retirement savings vehicle.
Take advantage of tax strategies
Work with a tax professional to ensure you're taking advantage of all available tax benefits related to retirement savings. This might include:
Traditional IRA deductions
Saver's credit, if you qualify
Tax-loss harvesting in taxable accounts
I recommend getting ahead of the game right now by using a spreadsheet to track tax-related information throughout the year.
Reduce your high-interest debt ASAP
High-interest debt can severely impact your ability to save for retirement. Develop a strategy to pay down credit card balances and other high-interest loans. Once you've eliminated these financial drains, redirect those payment amounts to your retirement savings.
Create a clear retirement budget
Planning for retirement is about a lot more than just beefing up a retirement account. Develop a detailed retirement budget to understand exactly how much you need to save. This exercise can help you:
Identify potential areas for increased savings
Set more precise savings goals
Make informed decisions about lifestyle adjustments
Plan for healthcare and long-term care costs
Another thought is to consider additional income streams, with the sole goal of putting those earnings towards retirement. Here some of the most popular ways to earn a little extra cash on the side.
Beef up your emergency fund
As always, you should maintain a robust emergency fund separate from your retirement savings. This helps prevent the need to tap into retirement accounts for unexpected expenses, which can trigger taxes and penalties while derailing your long-term savings goals.
The typical rule of thumb is to aim for six months’ worth of living expenses in your emergency fund. When you’re figuring out that number, factor in expenses like housing, food, utilities, insurance, transportation, and debt payments. Non-essential expenses like vacations, entertainment, or dining out don’t belong in your “emergency” calculations.
Schedule regular self check-ins
Schedule quarterly reviews of your retirement savings strategy. Monitor your progress, adjust contributions as needed, and stay informed about changes in retirement planning regulations and opportunities. This consistent attention helps ensure you're on track to meet your retirement goals and can make necessary adjustments promptly.
Remember that successful retirement saving is a marathon, not a sprint. By chipping away at these strategies consistently and making adjustments as needed, you can take away some of the fear and uncertainty, and significantly improve your retirement readiness in 2025 and beyond.