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For the Week of November 28th, 2025
Christmas Trees, Catch-Up Contributions, and the True Cost of Retiring by State
Coming off the warmth of Thanksgiving gatherings, it’s easy to slip into holiday mode - but this week’s retirement news is a reminder that planning for the future doesn’t pause for the holidays. From looming changes to 401(k) tax rules to fresh data on how much savings you need by state, there are a few key updates worth your attention before the year ends.
By RetirementRedFlags.com
Retirement is no longer one-size-fits-all. It’s personal, unpredictable, and rapidly changing.
1. The 72-Year-Old Christmas Tree Farmer Still Going Strong
A heartwarming CNBC feature spotlights a 72-year-old who continues to run a Christmas tree farm alongside his son, blending family tradition with active, purpose-driven retirement. His story highlights a growing trend among older Americans who find that staying engaged through seasonal or part-time work can bring joy, structure, and even health benefits long after leaving a traditional career.
Action Steps:
✔ Explore part-time or seasonal work that aligns with your hobbies or family interests, especially around the holidays.
✔ Assess your retirement lifestyle goals to include more than finances - consider purpose, community, and physical activity.
2. Maxing Out Retirement Accounts Could Backfire for Some
A new article raises a surprising point: aggressively maxing out retirement accounts may hurt early-retirement plans if those funds are inaccessible until you're older. For early retirees, liquidity matters - and having too much locked away in tax-advantaged accounts can create cash flow issues at a critical time.
Action Steps:
✔ Balance retirement contributions with building a taxable (more liquid) investment account to access before age 59½.
✔ Talk with a financial advisor about your timeline and whether your retirement plan includes enough flexibility for early withdrawals.
3. What It Takes to Retire: State-by-State
Kiplinger’s latest retirement savings guide shows how dramatically retirement costs differ depending on where you live. What feels like a comfortable nest egg in one state may fall short in another, especially when you factor in taxes, housing, and healthcare. See how you rank!
Action Steps:
✔ Use retirement calculators specific to your state or future state to estimate realistic savings targets.
✔ Re-evaluate where you plan to live in retirement - moving to a lower-cost state could dramatically extend your nest egg.
4. New 401(k) Catch-Up Rules Starting in 2026
Barron’s reports that starting in 2026, high earners over age 50 will have to place their 401(k) catch-up contributions into Roth (after-tax) accounts - eliminating the immediate tax break previously available. This change will reshape retirement planning for many and could result in a higher tax bill now in exchange for tax-free withdrawals later.
Action Steps:
✔ Check if your income qualifies you for the new Roth catch-up rule (over $150K), and adjust contributions accordingly.
✔ Review your Roth vs. Traditional balance to optimize your tax exposure in retirement - consider “tax diversification” for flexibility.
5. Kyle Busch’s Warning: A Cautionary Tale on Financial Risk
A recent report highlights a steep potential loss for NASCAR driver Kyle Busch, underscoring how volatile investments and sponsorship‑driven income can dramatically shift financial outcomes. For retirees or those nearing retirement, it’s a reminder that not all income or investment strategies offer stability. Just like a professional athlete’s earnings can swing wildly, some investments or ventures carry higher risk than one might expect.
Action Steps:
✔ Review the risk level of any new income streams or investments - if they’re as volatile as sponsorship deals or high-stakes investments, treat them cautiously.
✔ Prioritize stable, low-risk income sources (e.g. Social Security, pension, private assets) especially if you’re close to or already in retirement.
If you have any questions about the headlines that hit the news this week, we are answering questions in our free Facebook group The Retirement Red Flags Community. Click below and we will make sure you get added.
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