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“The reason I am pushing you to save more for retirement when you are younger is that as you age you may find it harder—not easier—to boost your savings.”
That’s from “3 Overlooked Reasons to Save More in 2027,” an Oct. 22 post on Suze Orman’s website (1). In it, she asks readers to see if they can “boost your 401(k) savings rate by 1 percentage point or 2 percentage points for 2027” (1).
I’ve been a CPA since 1981, and I agree with most of what she’s saying. Starting young is one of the best things you can do, and life has a way of getting expensive just when you thought you’d catch up.
But if you’re already over 50, don’t read that and decide it’s too late. When it comes to how much you’re allowed to save, the tax law works the other way: it lets you put away more once you turn 50, not less (2).
Here’s where Suze is right, and where the numbers give older savers a break.
1. She’s right that life gets in the way
Her post says, “Even before AI began changing the workplace, the ability to keep working well into your 60s was never a given” (1).
She’s also right about caregiving. That same AARP study found that caregivers’ out-of-pocket spending averaged 26% of their income (3). Nearly half, 47%, had at least one financial setback, such as dipping into savings or cutting what they put toward retirement (3).
“If you eventually need to step in and help a loved one, you will already be further ahead with your retirement savings,” she writes (1). I couldn’t agree more.
2. At 50, your 401(k) limit jumps
For 2026, the IRS lets you put up to $24,500 into a 401(k), 403(b) or governmental 457 plan (2).
At 50 and older, you can add a catch-up contribution of up to $8,000 (2). That’s a total of $32,500, about a third more than a younger worker can save in the same plan.
That’s what I mean when I say the law gives you more room, not less. The hard part is finding the cash.
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3. Ages 60 to 63 get an even bigger catch-up
If you’re 60, 61, 62 or 63, your catch-up limit for 2026 is $11,250 instead of $8,000 (2).
Add that to the $24,500 base, and you can put away up to $35,750 in a single year.
If you and your spouse are both in that age range and each have a workplace plan, that’s up to $71,500 between you.
Quick gut-check — if your money advice is coming from random online influencers, you’re playing a dangerous game. I’ve been a CPA since 1981 and writing about money since before the internet existed. Sign up for the free Money Talks Newsletter and get expert advice that’s been tested by time.
4. Don’t forget the IRA
The IRA limit for 2026 is $7,500, and people 50 and older can add a $1,100 catch-up (2). That’s $8,600 a year, on top of whatever goes into a workplace plan.
Suze suggests maxing out a Roth IRA if you’re eligible (1). Just know that Roth IRA eligibility phases out at higher incomes. For 2026, the phase-out range for single filers and heads of household runs from $153,000 to $168,000 (2).
5. Higher earners: your catch-up may have to go in as Roth
There’s one new wrinkle. Under SECURE 2.0, catch-up contributions for “certain higher-income participants” must be made as after-tax Roth contributions, the IRS says (4).
The IRS says a transition period for that rule generally ended Dec. 31, 2025 (4). If you earn a good salary, ask your plan how it’s handling your catch-ups. You’ll pay the tax now instead of later.
6. Watch for the 2027 limits
As Suze notes, “We’ll soon learn whether the limit will be higher in 2027” (1). Last year, the IRS announced the 2026 limits on Nov. 13 (2).
When the new numbers come out, adjust your contribution right away so the increase starts with your first paycheck in January.
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My honest take
Suze is right about the young. Every year you wait costs you growth you’ll never get back.
But her pitch is mainly about starting early. If you’re 55 or 60, the rules give you more room to save than you’ve ever had.
Using that room is a matter of habit and budget, not age. Bump your contribution a point or two, and let the tax law do what it was built to do for people your age.
Sources: 1. Suze Orman; 2. IRS; 3. AARP; 4. IRS
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