MarketWatch recently featured David A. Schneider, CFP®, of Schneider Wealth Strategies, in its article "These Workers Are Allowed to Save $35,000 a Year in Their 401(k)s. Here's How Many Actually Do It." The article examines why participation in "super catch-up" contributions remains limited, despite expanded savings opportunities for workers ages 60 to 63.

Mr. Schneider explained that the design of the provision itself creates barriers for most savers:

"Super catch-up contributions were poorly designed. They are inaccessible to most people. Saving $34,750 is about half of older households' income."

He also highlighted the role of awareness and communication challenges:

"A lot of people just don't know about super catch-ups. Your average employee is getting a hundred emails a day and they're not paying attention to that HR email that's for 60- to 63-year-olds."

Finally, Mr. Schneider noted that the incremental benefit may be limited for those already in a position to save:

"It's great to have, but it's of marginal benefit. It's only $3,750. Those taking advantage of that were going to save money somehow, somewhere, anyway."

The article underscores that while expanded contribution limits can be helpful in theory, real-world factors such as income constraints and behavioral hurdles play a significant role in determining whether workers can take advantage of them.

🔗 Read the full article here:
https://www.marketwatch.com/story/these-workers-are-allowed-to-save-35000-a-year-in-their-401ks-heres-how-many-actually-do-it