The new year will bring numerous retirement-related changes for savers and retirees alike.
Here’s a summary of the main retirement-related changes in 2026.
The amount of money you can save for your golden years will increase slightly. By 2026, individual retirement account (IRA) contribution limits will increase to $7,500, and catch-up contribution limits will increase to $1,100 for those 50 and older.
These limits apply to traditional IRAs and Roth IRAs, but Roth IRA eligibility is based on income level. For Roth IRAs, the contribution income limits will increase slightly to between $153,000 and $168,000 for singles and heads of household. For married couples filing jointly, the range increases to between $242,000 and $252,000.
By 2026, you’ll be able to add a little to your 401(k), 403(b), 457 plan, and the federal government’s Thrift Savings Plan. The donation limit increases from $23,500 to $24,500. If you are 50 or older, you may receive an additional $8,000.
If your plan allows it, people ages 60 to 63 can contribute an additional $11,250 in 2026 in lieu of the $8,000.
Something to note: By 2026, a provision in the SECURE 2.0 retirement legislation will go into effect requiring high earners who are age 50 or older and who earn more than $150,000 to contribute on an after-tax basis in a Roth option in an employer-sponsored retirement plan.
If your employer’s plan doesn’t offer a Roth 401(k) account, one solution is to roll your catch-up amount into a Roth IRA if your income is below the IRS income threshold.
Read more: These are the 2026 Traditional IRA and Roth IRA limits
Contribution limits on health savings accounts, or HSAs, an important retirement vehicle, are also increasing.
The new annual limit for individuals in 2026 will be $4,400. For family coverage, the HSA contribution limit rises to $8,750, with an additional $1,000 available for those 55 or older.
I like these accounts because they allow contributions to be invested instead of being used for current medical expenses. You deposit funds on a tax-free basis and they accumulate tax-free, as do qualified medical expenses. One rule: You must be enrolled in a high-deductible health plan (HDHP) to contribute to an HSA. If you have a qualified HDHP, you can also open an account as a sole trader or business owner.
Read more: 2026 HSA contribution limits: Here’s how much you can save
The Social Security Administration announced a 2026 cost of living adjustment (COLA) of 2.8%. Starting in January, the adjustment will add an average of $56 a month to the 75 million retired seniors and disabled workers who have struggled with rising prices this year.
Read more: How to Know Your 2026 Social Security COLA Increase
Medicare premiums will also rise significantly in 2026, curbing growth in retiree Social Security checks.
The Centers for Medicare and Medicaid Services announced that monthly Part B premiums will climb to $202.90 in 2026, an increase of $17.90 this year. The annual Part B deductible that most people must pay before Medicare coverage begins will increase by $26 in 2026, to $283.
The agency also announced other increases in Medicare costs through 2026, including a high-income surcharge. Since 2007, a beneficiary’s Part B monthly premium has been based on his or her income. About 8% of Medicare users earn too much to qualify for standard Part B and Part D premiums and must pay the surcharge.
In 2026, Medicare beneficiaries who earn more than $109,000 for single filers and $218,000 for joint filers will pay the surcharge. For these beneficiaries, the total monthly Part B premium will range from $284.10 to $689.90.
Calculations have a two-year lag time. Whether you pay the surcharge in 2026 depends on the income shown on your 2024 tax return.
By 2026, some Medicare Advantage insurers will drop plans, hospital systems and doctors, scale back benefits and raise out-of-pocket costs, including deductibles.
Through the Medicare Online Search Plan Finder on the Medicare.gov website, you can view Medicare Advantage plan options, details about supplemental benefits, and the names of doctors and hospitals in the plan’s network.
If you find at the start of the new year that you’re not satisfied with your Medicare Advantage plan, you can switch. Medicare Advantage is open for enrollment from January 1 to March 31.
During this time, Medicare Advantage enrollees can switch plans or transfer to their original Medicare. However, you cannot jump from a traditional Medicare plan to a Medicare Advantage plan. You must wait for the fall semester.
Read more: Medicare Open Enrollment: How to Add or Adjust Your Coverage
Here’s some good news: When negotiated prices take effect on January 1, out-of-pocket costs for the top 10 Medicare negotiated prescription drugs will drop by more than 50% on average for people enrolled in stand-alone Part D plans. The drugs are used by nearly 9 million Medicare seniors to treat conditions such as diabetes, heart disease, autoimmune diseases and cancer.
Over the next year, the Social Security Administration reportedly plans to close a large number of field offices that provide in-person assistance to people applying for benefits, receiving Social Security cards and more.
Remember, if you have a My Social Security account, you can access many SSA services online. You can also call 1-800-772-1213 to connect you with automated services.
In 2026, the full retirement age (FRA) increases again. In November 2025, the FRA (age to qualify for 100% of Social Security benefits) for people born in 1959 will increase to 66 years and 10 months. Next November, the FRA will reach age 67 for those born in 1960 or later, marking the end of a 42-year shift in the retirement age from 65 to 67.
You can start collecting your pre-FRA retirement benefits at age 62, but your monthly checks will be permanently reduced by as much as 30%. If you can delay taking benefits from your FRA until age 70, you will receive delayed retirement credits. These benefits increase by approximately 8% each year until you reach age 70. Points stop accruing at that point, but the fatter checks will stick with you for the rest of your life.
Read more: What is the average retirement savings by age?
The salary cap on which Social Security taxes are subject will increase from $176,100 to $184,500 in 2025, meaning higher earners will pay Social Security taxes on more of their income.
For those who work while receiving Social Security, the income level at which benefits are temporarily withheld increases slightly.
If you continue to work after receiving Social Security benefits before filing for FRA, some of your benefits will be withheld if your income exceeds a certain threshold. The threshold is $24,480 in 2026, up from $23,400 in 2025.
The limit increases three times in the year you reach full retirement age, and the annual earnings test ends in the month you reach full retirement age. From that point on, you can earn money without limiting your benefits, and while you won’t get a lump sum of the previously forfeited amounts, your monthly benefits will be adjusted upwards so you’ll get back all the money that was withheld. Use the calculator on the SSA website to complete the calculation.
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A new provision of the One Big Beautiful Bill Act: If you are 65 or older, you will be able to take advantage of a temporary $6,000 income tax deduction. This deduction applies to both itemized and non-itemized items, and will double to $12,000 for a married couple filing jointly, assuming both spouses are 65 years old.
Note: There are income limits for seniors with higher incomes. The deduction is reduced and eventually phased out for single filers earning more than $75,000 and joint filers earning more than $150,000.
For those who don’t itemize, this additional deduction is in addition to the standard deduction: $16,100 for single filers and $32,200 for married couples filing jointly.
Kerry Hannon is a senior columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including “Retirement Living: Gen X’s Guide to Securing a Financial Future,” “Taking Charge in Your 50s: How to Succeed in the New World of Work” and “You are never too old to be rich. “Follow her and continue blue sky and X.
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