Retirement Retirement Planning

7 Costly 401(k) Mistakes People Make in Their 60s (And the Price They Pay)

The first one could cost you the most.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated June 17, 2026

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If you're in your 60s, it can be an exciting time, as retirement is just around the corner. However, sometimes people make costly 401(k) mistakes that can affect the amount of retirement funds they have to draw on.

Below are some of the costliest 401(k) retirement plan mistakes that people in their 60s make, along with advice on how to avoid them. If you're in your 60s, don't lose hope. Many of the mistakes below can be rectified by taking the time to better understand your 401(k) and asking for help when you need it.

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Not taking advantage of super catch-up contributions

When you turn 60, you qualify for super catch-up contributions. From ages 60 to 63, you can contribute an additional $11,250 to your 401(k) in addition to the annual maximum of $24,500. The purpose of this short super catch-up window is to help you top up your retirement account and grow your wealth right before you stop working. Not taking advantage of this opportunity is a mistake because it is one of the last times you can fully maximize your 401(k) before you officially retire.

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Not paying attention to 2026 tax changes

In your 60s, it's important to pay attention to tax changes that will affect you. As you move from being a working adult to one who lives off of retirement income, your tax strategy will likely change. Starting this year, high earners who make over $150,000 a year are required to make all catch-up contributions as Roth payments, not traditional 401(k) payments. This may affect workers' total taxable income, so it's important to speak with an accountant if this applies to you.

Assuming Social Security will be there

Another mistake workers make with their 401(k)s is assuming they don't need to invest because they have Social Security. Although Social Security will exist, reports show that possibly as soon as the fourth quarter of 2032, the current trust fund will only have enough money to fund 78% of Social Security obligations. Neither 401(k)s nor Social Security were intended to fully fund retirement. So, it's important to plan how these two streams of income will work together to fund your retirement.

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Wasting year-end bonuses

If you receive a year-end bonus or commission bonuses throughout the year, wasting them is a mistake if you are in your 60s. Take the time to use bonuses to invest in your future, especially if you haven't maxed out your retirement accounts for the year. Spending mindlessly and not using bonuses to their full potential can negatively impact the amount of money you have for your retirement years.

Being too conservative too soon

Although many financial experts recommend that workers gradually become more conservative in their investments as they approach retirement, some people in their 60s invest too conservatively too soon. Instead, consider how long you plan to continue working, how much you'd like to live on in retirement, and your risk tolerance. Then, work with a financial planner to determine the best investment approach as you near retirement, so you don't miss out on potential returns.

Taking out 401(k) loans

If you take out a 401(k) loan, it can rob you of the ability to take advantage of investment returns during the last few years of working. Although people take out 401(k) loans for emergencies, it's still far better to take the time now to build an emergency fund so you don't have to dip into your retirement accounts. Taking out a 401(k) loan has other downsides. For example, if you leave your job early or get laid off, the balance will be due. Fortunately, people in their 60s will not have to pay an early withdrawal penalty, but they will miss out on their last few years of investment returns on the money they take out.

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Not having a plan for retirement

Finally, one of the biggest mistakes people make with their 401(k)s is not having a retirement plan. It's very common for people to go throughout their working lives automatically investing in their 401(k)s without thinking about how much they'll need, what their retirement goals are, or how many years they'll need to work to achieve them. Having a set plan to write down everything you need to do before you can comfortably retire is one of the best steps you can take to ensure you retire on time with enough money to live well.

How to get help with your 401(k)

It can be hard to ask for help with your 401(k). However, a 401(k) can be quite complex, with changing tax rules and contribution limits. There's absolutely no shame in speaking with a financial advisor, an accountant, or your human resources department to ask questions about your retirement plan. If you have questions about your employer match, whether or not you're ready for retirement, or whether the funds you've chosen have high fees or not, ask for help.

Bottom line

People in their 60s are approaching the average retirement age. However, many people in their 60s make mistakes that can impact their ability to get ahead financially. If you have made some of the mistakes listed above or you're not sure whether or not you're on track to retire, make sure to ask for help. Planning for retirement is a complex process with many variables, and you shouldn't have to do it alone.

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