5 New Year’s Resolutions to Boost Your Retirement Plans in 2026

As 2026 approaches, it’s the perfect time to set New Year’s resolutions that can strengthen your retirement plans. Whether you’re already retired, nearing retirement, or just starting to build your nest egg, a few small but strategic adjustments can make a big difference in your financial future. Here are five resolutions to consider for boosting your retirement plans in the coming year.

1. Maximize Your Retirement Contributions

One of the best ways to ensure a financially secure retirement is by maximizing contributions to your retirement accounts. The IRS has increased contribution limits for 401(k)s, IRAs, and other retirement plans, giving you an opportunity to save more for the future.

Action Steps:

• Increase your 401(k) contributions: If you’re still working and your employer offers a 401(k) plan, aim to increase your contributions, even by 1%. The maximum contribution limit for 401(k) plans in 2026 is $23,000 (plus an additional $7,500 if you’re 50 or older).
• Contribute to an IRA: If you don’t have access to a 401(k) or want to save even more, consider funding an IRA or Roth IRA. For 2026, the IRA contribution limit is $7,000 (or $8,500 if you’re 50 or older).
• Take advantage of employer matching: If your employer offers matching contributions, make sure you’re contributing enough to get the full match. This is essentially free money that can significantly boost your retirement savings.

Maximizing your contributions early in the year gives your money more time to grow and benefit from compound interest, putting you in a stronger financial position for retirement.

2. Diversify and Rebalance Your Portfolio

Diversification and regular rebalancing are key to a healthy investment portfolio. The start of a new year is a great time to review your portfolio’s asset allocation and make adjustments if necessary.

Action Steps:

• Assess your current asset allocation: Review your portfolio to see if it’s properly diversified across stocks, bonds, and other asset classes based on your risk tolerance and retirement timeline. For example, younger investors might want a higher allocation to stocks, while retirees might prefer a more conservative mix.
• Rebalance your portfolio: Over time, certain investments may grow faster than others, causing your portfolio’s asset allocation to shift. Rebalancing involves selling assets that have overperformed and buying those that are underweighted, bringing your portfolio back to your desired mix.
• Consider adding alternative investments: If you’re looking to reduce risk or improve returns, consider adding alternative investments, like REITs, commodities, or even international stocks. Diversifying with these assets can help balance your portfolio and reduce volatility.

By keeping your portfolio balanced and diversified, you can better protect your retirement savings from market fluctuations and ensure it’s aligned with your retirement goals.

3. Boost Your Emergency Fund

While an emergency fund is essential at any age, it’s especially important as you near or enter retirement. Medical expenses, unexpected home repairs, or other unforeseen costs can impact your retirement budget, so a well-stocked emergency fund can provide peace of mind.

Action Steps:

• Set a goal: Aim to have at least three to six months’ worth of living expenses in your emergency fund. If you’re already retired, consider increasing this to cover at least one year of expenses, as a buffer against market downturns or large, unplanned expenses.
• Automate savings: If you’re still working, set up automatic transfers from your paycheck to a high-yield savings account. This helps you build your fund consistently over time.
• Keep it accessible: Ensure your emergency fund is in a liquid, easily accessible account, such as a high-yield savings or money market account, rather than in stocks or other volatile investments.

Having a robust emergency fund reduces the likelihood of needing to withdraw from your retirement accounts in an emergency, preserving your savings and minimizing tax implications.

4. Review Your Social Security and Medicare Strategies

For those nearing retirement, Social Security and Medicare are essential elements of your retirement plan. Making informed decisions about when to start Social Security and which Medicare options to choose can have a lasting impact on your retirement income and healthcare coverage.

Action Steps:

• Evaluate your Social Security strategy: Consider when to start collecting benefits. While you can start as early as age 62, waiting until full retirement age (67 for most) or even delaying until age 70 will increase your monthly benefit. Use a Social Security calculator to help decide the best age to start based on your health, financial needs, and longevity.
• Review Medicare options: If you’re turning 65 this year or are already enrolled in Medicare, review your Medicare plan during the annual open enrollment period. Consider whether a Medicare Advantage plan or Medigap policy would better meet your healthcare needs.
• Account for taxes on Social Security: Social Security benefits may be subject to federal taxes if your combined income exceeds certain limits. Plan your retirement withdrawals carefully to avoid higher taxes on Social Security.

By planning Social Security and Medicare strategically, you can optimize your retirement income and ensure you’re covered with the healthcare benefits that fit your needs.

5. Get Serious About Estate Planning

Estate planning isn’t just about distributing your assets; it’s also about making sure your wishes are respected and protecting your loved ones. Having a clear, legally sound estate plan provides peace of mind for you and your family.

Action Steps:

• Review and update your will: Make sure your will reflects your current wishes, especially if there have been changes in your family, such as marriage, divorce, or the birth of a grandchild. A will ensures that your assets are distributed according to your preferences.
• Set up or review a trust: If you have significant assets or specific estate goals, consider creating a trust to manage your estate and avoid probate. Trusts can provide more control over your assets, reduce estate taxes, and protect assets for beneficiaries.
• Designate beneficiaries: Check the beneficiary designations on your retirement accounts, insurance policies, and other assets. Naming beneficiaries ensures these assets pass directly to your loved ones, bypassing probate.
• Prepare healthcare directives and powers of attorney: Make sure you have a living will and durable power of attorney for healthcare and finances. These documents outline your wishes for medical care and designate someone to make financial decisions on your behalf if you’re unable to do so.

A well-prepared estate plan safeguards your legacy, provides for your loved ones, and ensures that your wishes are respected if you’re unable to manage your affairs.

Final Thoughts

Setting these New Year’s resolutions for 2026 can put you on a stronger path to a secure and enjoyable retirement. By maximizing contributions, diversifying your investments, building your emergency fund, strategizing Social Security and Medicare, and preparing an estate plan, you’re taking important steps to protect your retirement and prepare for the unexpected.

Remember, even small adjustments can have a significant impact over time. By committing to these resolutions and reviewing your retirement strategy regularly, you’ll be well-equipped to enjoy a fulfilling and financially secure retirement. Here’s to making 2026 a year of smart financial decisions that strengthen your future!