Here's how to increase your 401(k) plan contributions for 2025 and save more.

• A Bankrate survey of 2,445 U.S. adults in August found that more than half of American workers feel they are not saving enough for retirement.
• In 2025, employees can contribute a maximum of $23,500 into their 401(k) plans, with an additional $7,500 catch-up contribution available for those aged 50 and above.
• The catch-up contribution limit for those aged 60 to 63 in 2025 will increase to $11,250 due to a change from Secure 2.0.

Financial experts suggest that early January could be the ideal time to increase 401(k) plan contributions if you're planning for retirement in 2025.

A Bankrate survey of 2,445 U.S. adults in August found that more than half of American workers feel they are not saving enough for retirement.

Starting in 2025, your 401(k) plan will have a higher contribution limit and a special catch-up for older investors, which could help grow your nest egg.

In 2025, personal finance experts offer valuable advice on managing your money, selecting the best student loan repayment plan, and creating a financial to-do list.

In 2025, you can contribute $23,500 into your 401(k) plan, an increase from $23,000 in 2024. Individuals aged 50 and above can make additional contributions of $7,500 on top of the $23,500 limit.

According to Catherine Valega, founder of Green Bee Advisory, a certified financial planner in the Boston area, it usually takes two paychecks for 401(k) deferral changes to take effect.

Maxing out deferrals can be easier earlier in the year because the higher percentage is spread across more paychecks.

Valega advised clients to be aggressive with their investments and to max out their 401(k) plans if possible, especially if they have decades until retirement.

From 2025 onwards, there is a special catch-up limit for investors aged 60 to 63 due to a change brought about by Secure 2.0. This group can save $11,250 for catch-up contributions, increasing their total deferral limit to $34,750 for 2025.

Invest 'as much as you feel comfortable'

It can be challenging for investors to prioritize maxing out 401(k) deferrals when they have other immediate goals, such as paying off debt or purchasing a home.

Nearly 14% of employees in 2023 had fully funded their 401(k) plans, according to a 2024 Vanguard report, which analyzed data from 1,500 qualified plans and nearly five million participants.

Typically, those with the highest contributions were older, had higher incomes, and had been with their employer for a longer period, according to the report.

CFP George Gagliardi advised that you should not tap into your retirement funds "as much as you feel comfortable" to avoid owing a 10% penalty and taxes for early withdrawals, with some exceptions.

He advised having a "sufficient emergency fund" in addition to retirement savings.

Experts suggest that a family should save between three to six months' worth of expenses for an emergency fund, based on their specific circumstances.