Trying to catch up
Dialing down risk means workers may have to contribute more each year to reach their retirement goals. The new rule of thumb is that workers should aim to save 15% of their gross income, including employer contributions, and even more if they get a late start.
Tip: Workers 50 and older can contribute up to $24,500 to a 401(k) or similar workplace savings plan in 2018 including $6,000 in catch-up contributions. In addition, those 50+ can contribute up to $6,500 to a traditional or Roth IRA (subject to income limits), including $1,000 in catch-up contributions in 2018.