The Retirement Rundown: Is Your Plan Ready for 2026?

When was the last time you looked at your retirement plan? If you’re like most people, you set up your 401(k) contributions years ago and haven’t touched them since. However, a ‘set it and forget it’ strategy can be a risky gamble. With inflation and changing tax laws, your plan needs to be as dynamic as the market.

The start of a new year is the perfect time to give your retirement strategy a thorough checkup. Here are five critical areas you need to review to make sure your retirement plan is on track for 2026 and beyond.

Contribution Limits Have Changed (Again)

Every year, the IRS adjusts contribution limits for retirement accounts to keep pace with inflation. For 2026, the limits increased again.

401(k)s

The standard 401(k) contribution limit rose to $24,500, up from $23,500 in 2025.

The catch-up contribution for those 50 and older also increased to $8,000 (up from $7,500), allowing participants age 50 and over to contribute up to $32,500 total.

If you are between the ages of 60 and 63, you can stash away a total of $35,750 into your 401(k) for 2026. This “super catch-up” provision recognizes that these are often peak earning years when people can afford to save more aggressively.

IRAs

IRA contribution limits also increased for 2026, rising to $7,500 (up from $7,000), with the catch-up contribution for those 50 and older now at $1,100 (up from $1,000).

One important note for 2026: If you earned more than $150,000 in 2025, the SECURE 2.0 Act now requires your catch-up contributions to be made on a Roth IRA (after tax) basis. This is a significant shift in how high earners must track their retirement tax liability.

Here’s the thing: if you’re not maxing out your contributions and you can afford to increase them, you’re leaving money on the table. More importantly, you’re missing out on years of compound growth that you can never get back.

“Many people set their contribution percentages years ago and never increase them,” says David Beckerman, Senior Vice President at David Lerner Associates.

“Even a 1 or 2% increase in your contribution rate can make a dramatic difference over time. If you’re in your peak earning years, taking advantage of these higher contribution limits, especially the new super catch-up provisions for those 60 to 63, can significantly strengthen your retirement security.”

Are You Maximizing Your Employer Match?

If your employer offers a 401(k) match and you aren’t hitting the threshold, you are basically declining a guaranteed 50% or 100% return on your investment. It’s like leaving part of your paycheck on the table every month.

Your Asset Allocation Probably Needs Adjusting

When was the last time you rebalanced?  As you move from your 50s into your 60s, your goal shifts from wealth accumulation to wealth preservation. An annual checkup ensures a sudden market dip doesn’t derail your retirement date.

Don’t Forget About Healthcare Costs

This is the retirement expense that blindsides most people.

Here are some strategies to prepare:

• Max out your HSA: For 2026, the contribution limit for self-only coverage is $4,400 and $8.750 for families. If you are 55 or older, you can add an extra $1,000 catch up contribution. This is the only account that is ‘triple tax-advantaged’ (tax-deductible going in, tax-free growth, and tax-free for medical expenses).
• LTC Tip: Mention “Hybrid Policies” (Life insurance + Long term care). This is a huge trend in 2026 for people who don’t want to “lose” the money if they never end up needing the care.

When Will You Take Social Security?

The age at which you claim Social Security benefits can have a massive impact on your lifetime benefits. You can claim as early as 62, but your benefit will be permanently reduced. If you wait until your full retirement age (67 for anyone born in 1960 or later), you get your full benefit. Wait until 70, and your benefit increases roughly by 8% for every year you delay past your full retirement age. For most, that is a guaranteed return no other investment can reliably match.

The decision of when to claim depends on several factors:

• Your health and family longevity
• Whether you’re still working
• Your other retirement income sources
• Your spouse’s benefit and claiming strategy
• Your need for the income

If you’re within 10 years of claiming Social Security, consider meeting with one of our financial counselors to run scenarios and determine the optimal claiming strategy for your situation.

Bonus Check: Is Your Beneficiary Information Updated?

This isn’t directly related to growing your savings; it’s about protecting them. When was the last time you reviewed the beneficiary designations on your accounts?

Life changes quickly. Beyond marriage and divorce, consider the birth of grandchildren or the passing of a loved one. If your designations don’t reflect your current wishes, your will not fix it. These forms are legal contracts that take precedence over your will.

Take 15 minutes this quarter to:

• Log into each retirement account: (401k, IRA, 403b).
• Check your backups: Make sure you have named contingent beneficiaries.
• Update for 2026: Ensure the names and contact information match your current family structure/

Take Action This Quarter

Reviewing your retirement plan shouldn’t be a once-in-a-decade event. Think of it like a wellness check-up: regular attention prevents small issues from becoming major obstacles down the road.

Set a recurring calendar reminder to review your retirement plan at least twice a year. During each review:

1. Capture the match: check that you’re contributing enough to maximize employer matching
2. Check the 2026 limits: verify your contributions are on track to hit annual limits if that’s your goal
3. Rebalance for risk: review your asset allocation and rebalance if necessary
4. Run the projections: update your retirement projection based on current account balances
5. Assess your tax-diversification: check the balance between your Traditional and Roth accounts.
6. Review your Required Minimum Distributions (RMDs): if you are age 73 or older.

If your plan appears to be falling short, don’t panic. The earlier you identify gaps, the more time you have to course correct. Even small changes made today can lead to significant improvements in your future security.

Consider a formal retirement income review with a financial advisor. As you transition from saving to spending, the strategy changes from growth to sustainable distribution. The complexity of retirement planning increases as you get closer to retiring, and professional guidance can help you navigate decisions around Social Security, healthcare, tax planning, and income distribution strategies.

Your retirement isn’t something that will just take care of itself, but with regular attention, you can rebuild the foundation you’ve worked decades to achieve. The peace of mind that comes with a solid plan is worth far more than a few minutes it takes to review it today.

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 Material contained in this article is provided for information purposes only. It is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. These materials are provided for general information and educational purposes, based on publicly available information from sources believed to be reliable. We cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.