Amid the global turmoil of this young new year comes a flurry of welcome developments that will help many people — especially retirees and those close to retirement — supercharge their savings, cut prescription drug costs, keep more of the money they earn and, possibly, raise their credit scores.

The details of the changes, which are partly tied to the phasing in of provisions from the Secure 2.0 and Inflation Reduction acts of 2022, can be head-spinning. But the payoff — and, in one case, possible penalty — can be substantial.

Here is a roundup of the most important changes:

Boost for savers

For the first time, people ages 60 to 63 will be able to supersize catch-up contributions to 401(k)s and similar workplace plans beyond the maximum for other savers 50 and older, powering the push to accelerate savings in the years just before retirement.

The new catch-up contribution limit for this age group for 2025: $11,250, versus $7,500 for employees ages 50 to 59 or 64 and older. That’s on top of the $23,500 maximum in 2025 for savers younger than 50, bringing the total allowable contribution for workers 60 to 63 to $34,750 this year.

“People at this stage of life may be in their peak earning years, may have paid off their mortgages and often have college funding in the rearview mirror,” said Christine Benz, director of personal finance and retirement planning at Morningstar. “That can create the wherewithal to save more.”

There are a few other changes to tax-advantaged accounts that will benefit retirement savers this year. They include small increases in the income limits to qualify for Roth individual retirement accounts, health savings accounts, and deductible IRAs for people also covered by a retirement plan at work. The income limit is also going up for the saver’s credit, worth up to $1,000 for singles who earn $39,500 or less, and $2,000 for married couples filing jointly who make $79,000 or less.

Cap on drug bills

In a true game-changer for millions of Medicare enrollees, out-of-pocket costs for prescription drugs covered under Part D will be limited to $2,000 this year.

The new cap on costs, which started to phase in last year, replaces a system in which people with Medicare Part D coverage typically had to spend more than $3,000 before they qualified for catastrophic coverage, when insurance would pick up most of a drug’s cost, leaving patients with a 5% copayment. The average price of specialty medicines is around $7,000 a month, and many run $10,000 a month or more.

Early retiree break

Some 60% of workers take Social Security before they reach the age when they can collect full benefits (66 and 10 months in 2025). In a small break for those who continue to work full or part time, the amount most can earn before the government will temporarily reduce their benefits is rising modestly to $23,400, up from $22,320 in 2024.

The income limit is more generous for those who will hit full retirement age this year: $62,160, up from $59,520 in 2024.

Here’s how the system works: For every $2 that early retirees earn above the income limit, they lose $1 in Social Security benefits until they reach full retirement age. Then in the calendar year they hit full retirement age, they’ll lose $1 in benefits for every $3 in work earnings. Once they hit full retirement age, Social Security repays the money withheld, adding it back over time to the monthly benefit.

“It’s important to remember the reduction in benefits is temporary and will be restored over the course of your retirement,” said Moeller, author of the newsletter “Aging in America.”

Inherited IRA changes

The prize — booby prize may be more fitting — for the most confusing financial change of 2025 goes to newly clarified IRS rules governing how you need to withdraw money from an inherited IRA. “It’s complicated. The penalties for not getting it right are significant and awareness is low, which can make for a frustrating experience,” Brestowski said.

The rules apply to IRAs inherited after 2019 by people other than a spouse, minor child or someone who is disabled or chronically ill — commonly, adult children and grandchildren — and require all the money in the account to be withdrawn within 10 years of the original owner’s death.

Under the guidelines, if the person who died wasn’t required to take minimum distributions from the account (starting at age 73, currently), the heir can withdraw money any time over the 10-year period as long as there’s none left by the end of it. But if the original owner had to take distributions every year, the person who inherits the account must too, starting the year after the original owner’s death.

The penalty for not making the correct withdrawal: 25% of the amount you should have taken out, or 10% if you correct the mistake within two years.

Erasing medical debt

There’s a last-minute gift from the Biden-era Consumer Financial Protection Bureau to the one-quarter of Americans who owe money for past-due health care bills: a ban on including medical debt in credit reports. In a move announced this month, the agency also barred creditors from considering some medical information in loan decisions.

The new regulations are expected to erase nearly $50 million in medical debt from the credit reports of more than 15 million Americans. It will also raise their credit scores by an estimated 20 points and could lead to the approval of an additional 22,000 mortgages a year.

“This change provides a more accurate picture of creditworthiness by removing a debt that people have little control over,” said Allison Sesso, president and CEO of the nonprofit Undue Medical Debt.

But President Donald Trump and Republicans in Congress have already signaled their intention to roll back some regulations and their displeasure with the CFPB. Two lawsuits challenging the ruling have already been filed by members of the debt-collection industry.

As a result, the changes, which were originally expected to take effect in 60 days, are likely to be delayed — or, possibly, derailed.

“Our hope is that the incoming administration recognizes that medical debt is a trap that nearly anyone can be unfairly caught up in,” Sesso said. “Only time will tell.”