A catch-up contribution is an extra amount you're allowed to put into retirement accounts once you turn 50. It's designed to help you accelerate your savings as retirement gets closer. For example, while the standard 401(k) contribution limit might be $23,000, those 50 and older can add an additional $7,500.

It's not about playing catch-up because you're behind—it's simply an opportunity to maximize your retirement savings when you might have more earning power and fewer financial obligations. If you can afford it, it's a powerful way to strengthen your financial future.