What’s New for Retirees in 2026? A Friendly Guide to Staying Ahead

If you’re retired—or planning to be within the next 5–10 years—2026 is shaping up to be a year of meaningful changes. Some are helpful, some may squeeze the budget a bit, and some are just good to know before they sneak up on you like surprise guests at a backyard barbecue.

The good news? With a little planning, you can navigate these updates with confidence and keep your financial life running smoothly.

Let’s walk through what’s new, what matters most, and how to use these changes to your advantage.

Higher Retirement Account Contribution Limits

Good news for savers: contribution limits are rising again in 2026.
The IRS has announced the amounts for the following:

401(k), 403(b), and most 457 plans - $24,500 (up from $23,500 in 2025)
- Catch-up contributions for those age 50+ - $8,000 (up from $7,500 in 2025)
- Catch-up for employees aged 60, 61, 62, and 63 - $11,250
IRA and Roth IRA contributions - $7,500 (up from $7,000 in 2025)
- Catch-up contributions for those age 50+ - $1,100 (up from $1,000 in 2025)

For anyone 5–10 years from retirement, these extra dollars can make a big difference—especially with compounding on your side. This is a great year to revisit your deferral rate, check your employer match, and confirm that after-tax or Roth options are being used effectively.

Think of it as giving your future self a little raise.

Social Security COLA: A Small Lift for Monthly Checks

Retirees can expect a 2.8% Cost-of-Living Adjustment (COLA) in 2026, beginning in January. You can view your specific COLA notice online through your "my Social Security" account starting in early December.

Even a modest COLA matters over time, especially for retirees who rely on Social Security as a stable, predictable piece of their income.

More than anything, the COLA is a reminder to double-check how Social Security fits into your broader income plan—timing still matters, even for those already collecting.

Medicare Part B Premiums Are Increasing

Medicare is getting a little more expensive in 2026.

The Part B premium will increase by nearly 9.7%, continuing a trend of healthcare costs outpacing general inflation. The standard Part B premium will be $202.90/mo. It’s not fun, but it’s also not unexpected.

For retirees, this means:

Building healthcare inflation into your budget
Re-evaluating Medicare supplement or Advantage plans during open enrollment
Considering an HSA strategy if you’re still working and enrolled in a high-deductible plan

If healthcare is one of your biggest retirement expenses (and it usually is), planning ahead can save a lot of stress—and surprise bills.

2026 Tax Law Changes: One Big Beautiful Bill

One of the biggest shifts coming in 2026 is the passing of the One Big Beautiful Bill back in 2025. This act makes key changes – some permanent – to the 2017 Tax Cuts and Jobs Act. Here’s just a few of the more impactful changes:

Tax Brackets: the tax rates we have become familiar with have now been made permanent, at 10%,12%, 22%, 24%, 32%, 35% and 37%. The brackets have also been adjusted upward for inflation, which may help reduce your taxable income if your earnings have remained steady.
Standard Deduction: increases for all filers claiming a standard deduction.
Lifetime Gift and Estate Tax Exclusions: increases to $15 million for single filers and $30 million for joint filers beginning in 2026, and will be indexed for inflation in future years. This exemption has been made permanent and eliminates the previous rollback in 2026.
SALT (State and Local Tax) Deduction: increases from $10k to $40k (beginning in 2025) then drops back to $10k in 2030. This deduction phases out at $500k modified adjusted gross income (both single and married filers)
Social Security: $6k deduction for seniors age 65 or older with incomes up to $75k (single) and $150k (joint). The enhanced deduction is in addition to the current standard deduction and senior deduction already in place.

Why does this matter?
Because 2026 may be a great year to evaluate tax-sensitive planning strategies, including:

Roth conversions
Realizing capital gains strategically
Gift planning
Reviewing income distribution strategies for retirees

A lot of opportunity lives here.

A quick note: We’re not CPAs, and this overview isn’t tax advice. It’s simply meant to help you stay aware of the big-picture changes coming in 2026. This is just a very short list of the updates taking effect. Tax law is getting a major makeover next year, so it’s important to work with your CPA or tax professional to understand how the full set of changes affects your personal situation.

Planning Ahead for 2026 Expenses (Expected and Unexpected)

Whether you’re nearing retirement or already living it, a new year is always a good time to revisit your spending plan. For 2026, consider:

Travel plans (book early, prices remain high!)
Home maintenance (roofs, appliances, aging-in-place updates)
Insurance premium increases
Healthcare costs
Family support, especially for adult children or aging parents

And because life loves curveballs: Plan for the stuff you didn’t see coming—car trouble, dental surprises, home repairs, and the classic “My dog needed surgery… again.”

A cash buffer keeps surprises from derailing your retirement confidence.

For Those 5–10 Years From Retirement: Your To-Do List

This is your prep zone—the years where smart decisions stack up in your favor.

Max out (or at least increase) retirement contributions
Evaluate Roth strategies
Run updated retirement projections
Review Social Security claiming strategies
Reassess employer benefits, especially HSAs and Roth 401(k)s
Build your emergency and “fun money” reserves

The more clarity you gain now, the smoother your transition will be.

For Those Already Retired: Your Staying-Strong Checklist

Retirement isn’t a finish line—it’s an ongoing plan.

Review your withdrawal strategy annually
Keep taxes in mind when taking income
Re-shop Medicare during open enrollment
Update your budget for rising healthcare and lifestyle costs
Review your estate plan and beneficiaries
Re-check allocations to ensure appropriate risk levels

Little tweaks can save big dollars over time. And hey, more savings means more room for concerts, grandkid adventures, and a good craft beer or two.

The Bottom Line: 2026 Is a Great Year to Get Organized

There’s a lot changing, but none of it needs to feel overwhelming. With the right plan, you can use these updates to strengthen your financial foundation—whether you’re almost retired or already enjoying it.

If you’d like help reviewing your strategy for 2026, aligning your savings and investment plans with the new rules, or running updated retirement projections, we’ve got you covered.

Let’s make 2026 your most confident year yet. Dream. Plan. Achieve.