What is the new retirement plan for 2025? Understanding SECURE 2.0 Act Changes

Oct 13, 2025 2 min read •

Retirement Planning Financial Wellness Senior Finances

According to a 2025 Vanguard report, only about 16% of eligible workers take advantage of catch-up contributions. As you ask, "What is the new retirement plan for 2025?", it's essential to recognize that it's not a single program but a series of major changes from the SECURE 2.0 Act designed to boost retirement security.

Quick Summary

The "new retirement plan for 2025" refers to key provisions of the SECURE 2.0 Act taking effect, including increased catch-up contributions for certain older workers, mandatory automatic enrollment for many new plans, and expanded access for long-term part-time employees.

Key Points

Higher Catch-Up Limit: Workers aged 60 to 63 can contribute an additional $11,250 to their 401(k) in 2025, significantly boosting late-career savings.
Mandatory Auto-Enrollment: Many new retirement plans starting in 2025 must automatically enroll employees, a measure designed to increase participation.
Improved Part-Time Access: The eligibility requirement for long-term part-time workers to join a company's 401(k) is reduced to two consecutive years of service.
Lost Account Database: An online 'Lost and Found' database established by the Department of Labor helps individuals locate forgotten retirement accounts.
Inflation Adjustment: Many contribution limits, including catch-up amounts, are now indexed for inflation starting in 2025.
RMD Age Delayed: The age for taking Required Minimum Distributions (RMDs) was already pushed to 73 and will rise to 75 in 2033, offering more tax-deferred growth time.

The Foundation of the SECURE 2.0 Act

Signed into law in late 2022, the SECURE 2.0 Act builds on the original SECURE Act of 2019, introducing dozens of provisions to help Americans save more easily for retirement. The year 2025 marks the activation of several highly significant updates impacting workers and retirees. The goal of this sweeping legislation is to address concerns about retirement readiness and enhance the retirement system for both employers and employees.

Key SECURE 2.0 Changes for 2025

Several notable changes from the SECURE 2.0 Act are set to take effect in 2025. These include increased catch-up contributions for certain older workers (ages 60-63), mandatory automatic enrollment for many new 401(k) and 403(b) plans, and expanded eligibility for long-term part-time workers. Additionally, an online database became available in late 2024 to help individuals locate forgotten retirement accounts. For more information on these changes, see {Link: Thrivent https://www.thrivent.com/insights/retirement-planning/changes-to-401ks-in-2025-contribution-catch-up-limits-mandatory-withdrawals-and-more}.

Comparison of Key Retirement Rules (Old vs. New)

{Link: Thrivent https://www.thrivent.com/insights/retirement-planning/changes-to-401ks-in-2025-contribution-catch-up-limits-mandatory-withdrawals-and-more}


Feature	Before SECURE 2.0	2025 and Beyond (SECURE 2.0)
RMD Age	Rose to 72 (from 70.5) under SECURE Act 1.0.	Increased to 73 (in 2023) and will increase to 75 in 2033.
Standard Catch-Up (Age 50+)	$7,500 for 401(k) in 2024.	$7,500 for 401(k) in 2025. Will be adjusted for inflation.
Enhanced Catch-Up (Ages 60-63)	Not applicable.	Additional $11,250 for 401(k) in 2025, with annual inflation adjustments.
New Plan Auto-Enrollment	Optional for employers.	Mandatory for most new plans established after 12/29/2022.
Part-Time Eligibility	3 consecutive years of 500+ hours.	2 consecutive years of 500+ hours.

Adapting Your Retirement Strategy

Reviewing your retirement strategy in light of these changes is recommended. Consider your eligibility for the new catch-up contributions and adjust your savings if possible. Check if your employer's plan is affected by auto-enrollment and set your desired contribution rate. Utilize the new Department of Labor database to locate any old retirement accounts.

Conclusion: Opportunities for Enhanced Retirement Security

The SECURE 2.0 Act's provisions taking effect in 2025 offer enhanced opportunities for many Americans to save for retirement through increased contribution options, expanded access, and tools to locate lost savings. Understanding these changes is crucial for maximizing your retirement planning efforts. For more details, consult the Department of Labor's official guidance: {Link: dol.gov https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs/secure-2-0-act}.

Frequently Asked Questions

The standard employee contribution limit for a 401(k) plan for 2025 is $23,500. For workers aged 50 and older, the regular catch-up contribution is an additional $7,500, and for those aged 60-63, a special catch-up limit of $11,250 applies.

Not necessarily. The mandatory auto-enrollment rule applies to new 401(k) and 403(b) plans established after December 29, 2022. It does not apply to pre-existing plans or to small businesses with 10 or fewer employees.

Beginning in 2025, part-time workers who have completed at least 500 hours of service in two consecutive years become eligible to participate in their company's 401(k) plan, reducing the waiting period from the previous three-year rule.

No, the Required Minimum Distribution (RMD) age was previously increased to 73 in 2023. The next increase will be in 2033, when the RMD age will rise to 75.

Yes, they can. A provision allowing employers to offer matching contributions to an employee's retirement account based on their student loan payments became effective in 2024. This is an optional benefit, so you should check with your employer.

The Department of Labor has been directed to create a national online database to help individuals find lost retirement savings from former employers. This resource helps consolidate old accounts and prevent savings from being forgotten.

Originally set to begin for 2024, the mandate requiring high-earning older workers to make catch-up contributions on a Roth basis was delayed and is not effective for the 2025 tax year. The rule will generally take full effect for most plans starting in 2027.

References

Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice. Always consult a qualified healthcare provider regarding personal health decisions.