Exciting Changes to Retirement Planning in 2025

At Arrow Advisors, we’re always looking for ways to help you make the most of your financial future. The good news? 2025 brings new opportunities to enhance your retirement strategy, with increased contribution limits and smarter planning tools to keep you on track. Let’s dive into what’s changing and how you can take advantage of these updates to build the retirement you deserve.

Higher Contribution Limits: More Room to Grow

The IRS has increased retirement contribution limits for 2025, giving you more ways to maximize your tax-advantaged savings:

• 401(k) Plans: You can now contribute up to $23,500 annually if you’re under 50. If your’e 50 or older, you can make an additional $7,500 in catch-up contributions, bringing your total to $31,000.

• New Catch-Up Boost for Ages 60-63: If your’e between 60 and 63, you can contribute an extra $11,250 in catch-up contributions, allowing a total of $34,750, a great way to accelerate savings in your final working years.

• IRAs: The annual contribution limit for Traditional and Roth IRAs has increased to $7,000, with an additional $1,000 catch-up contribution for those 50 and older, totaling $8,000.

These changes mean more tax-advantaged savings opportunities, helping you grow your retirement nest egg faster.

Smarter Retirement Planning with Technology

Retirement planning doesn’t have to be complicated. Thanks to modern financial technology, you can now:

• Use AI-driven tools to estimate expenses and retirement income needs

• Track progress in real-time with user-friendly apps

• Adjust your savings strategy based on your lifestyle goals

At Arrow Advisors, we help clients leverage these tools to stay on track and build a solid financial future.

Maximize Catch-Up Contributions

If you haven't saved as much as you'd like, it's not too late. Catch-up contributions allow you to make up for lost time and boost your retirement savings. Here's how to maximize them:

• Take full advantage of your employer match - it's free money that adds to your savings.

• Diversify contributions - consider a mix of 401(k), IRA, and HSA accounts for greater tax benefits.

• Automate your savings - set up recurring contributions to stay consistent.

• Explore Health Savings Accounts (HSAs) - if eligible, as HSA can serve as an additional retirement savings tool, offering tax-free growth and withdrawals for medical expenses.

Your 2025 Retirement Action Plan

Now is the time to take charge of your retirement future. Follow these steps to make the most of the new changes:

• Review your current contribution levels and adjust based on the new limits.

• Use a retirement calculator to see how these changes affect your long-term savings.

• If you’re 50 or older, take advantage of catch-up contributions to boost your savings.

• Schedule a retirement check-up with us to ensure your investment strategy aligns with your financial goals.

At Arrow Advisors, we’re here to guide you every step of the way. The future is bright and with these new retirement savings opportunities, your’e better equipped than ever to create the retirement you deserve!

Let’s talk about your retirement goals - Contact us today!

The information provided in this newsletter is based on carefully selected sources, believed to be reliable, but whose accuracy or completeness cannot be guaranteed. All information and expressions of opinions are subject to change without notice and are those of Arrow Advisors. 

Arrow Advisors offers Advisory Services through International Assets Investment Management, LLC.

Arrow Advisors is an independent and unaffiliated entity.