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Feeling behind on your retirement savings? You're not alone. Mid-career professionals often face the challenge of catching up while juggling other financial priorities. But don't despair.
In a recent podcast episode of Yahoo Finance's Decoding Retirement, Stephanie Guild, head of investment strategy at Robinhood, shared the concrete steps you can take now to maximize contributions, diversify your portfolio, and secure a more comfortable future.
Better late than never
The key, Guild said, is to start now.
Mid-career individuals shouldn't worry about what they haven't yet done in terms of planning because it'll only serve as a distraction. Instead, they should prioritize catching up by maximizing contributions to their 401(k) or IRA.
In 2025, the maximum contribution limit for a 401(k) is $23,500. For individuals under 50, the IRA contribution limit is $7,000, while those 50 and older can contribute up to $8,000. For 401(k) participants aged 50 and older, the standard catch-up contribution is $7,500. However, those between ages 60 and 63 can make an additional catch-up contribution of $11,250, allowing for even greater retirement savings.
In addition to funding Roth accounts, these individuals should consider saving in a taxable investment account — if they're able to. This provides more flexibility for withdrawals since traditional IRAs and 401(k)s require taxes to be paid on distributions, Guild noted.
Diversifying savings across different account types can help manage future tax liabilities.
Read more: 4 ways retirees can save on taxes
From an asset allocation standpoint, a mid-career individual’s investment strategy could be based on their time horizon. “You obviously have less time than maybe you did when you were in your 20s, but you also may have more income,” Guild said. “And that can be a factor.”
With higher earnings, for instance, a mid-career individual may have the capacity to take on more risk than traditional formulas suggest. Either way, consistency is key.
“Every month or every quarter, set it on autopilot so that you're not forgetting to save, because the sooner you can start doing it, the better,” Guild said.
Balancing retirement and other financial goals
Mid-career individuals often juggle multiple financial priorities, such as saving for retirement and their children's education at the same time. “It’s hard,” said Guild, who noted that she’s in that position now.
