Tips and resources that everyone can use
Knowledge Is Retirement Power
For nearly 60 years, Medicare has been the program that retired Americans turn to for their health care coverage. In 2023, it helped more than 65 million people pay for everything from hospital stays to doctor visits to prescription drugs. You become eligible for the program at age 65. However, prior to enrolling, you’ll need to set aside time to review the many options offered and sign up for the coverage that best meets your health needs and budget. You can start signing up three months before you turn 65, and you’ll have until three months after your birthday month to complete your enrollment. If you miss that deadline, you may end up paying higher premiums. If you are still working and have employer-sponsored health coverage, you can likely wait to sign up. For more information, check out AARP’s Medicare Enrollment Guide, a step-by-step tool for first-time Medicare enrollees.
Q&A
Q: What is the most I can save this year in my 401(k) plan?
A: 401(k) savers can contribute up to $23,500 in 2025 (an increase from $23,000 in 2024). The annual catch-up contribution for savers age 50 and older remains at $7,500 in 2025, for a potential total contribution of $31,000. Under a change made in SECURE ACT 2.0, a higher catch-up contribution limit applies for employees aged 60-63. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500, for a potential total contribution of $34,750. These limits also apply to savers with a 403(b) plan and most 457 plans.
Quarterly Reminder
When was the last time you reviewed your beneficiary designations for your major assets — including your retirement plan? The start of each new year is a good time for some financial housekeeping. Make sure your current designations still match your wishes, especially if you have had any major life changes such as marriage, divorce or the birth or adoption of any children.
Tools and Techniques
According to a survey by U.S. News & World Report, nearly half of Americans believe that carrying a credit card balance improves your credit score. Unfortunately, carrying a balance will likely lower your score — and cost you money in interest payments. That’s because an important factor in your credit score is how much of your available credit you use (known as your credit utilization ratio). Aim to use less than 30% of your available credit. For example, if you have a $5,000 credit limit, try to keep your balance under $1,500. It’s a sign to creditors that you aren’t stretching yourself too thin.
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