6 Retirement Planning Tips for 2026

With shifting economic conditions, changing tax laws and the increasing importance of sustainable investments, it’s crucial to stay informed and proactive in your retirement strategy. Whether you’re just beginning to save or nearing retirement age, understanding the latest trends and strategies can make a significant difference in achieving your financial goals. By staying ahead of the curve and adapting to new developments, you can ensure a comfortable and fulfilling retirement.

Whether you are just starting your retirement planning journey or looking to adjust your existing plan, speak with a financial advisor for help.

Tip #1: Set Realistic Goals

One of the most critical aspects of retirement planning is setting clear and realistic goals and objectives. These must align with your lifestyle so you can enjoy retirement. If you under-save and over-restrict, you’re setting yourself up for failure.

For example, if you value spending time with family and friends, your retirement goals may include taking a family vacation every year or having regular get-togethers. Similarly, if you prioritize your health and wellness, your retirement goals may include going on hiking adventures or learning to surf.

Tip #2: Prepare for Taxes

Tax planning is a crucial aspect of retirement planning. By reducing taxes in retirement, you can maximize your retirement savings to support your lifestyle and help you achieve your retirement goals.

For example, one tip for minimizing taxes in retirement is to carefully manage your withdrawals from tax-advantaged retirement accounts. By strategically timing your withdrawals, you can avoid triggering unnecessary taxes and penalties.

It’s also important to consider the impact of taxes on other retirement income sources, such as Social Security benefits.

Tip #3: Plan for High Healthcare Costs

Planning for high healthcare costs is the reality of aging. As you get older, your body breaks down, and you must go to the doctor more often. To manage these costs, plan and consider your healthcare options carefully.

One tip for managing healthcare costs in retirement is to enroll in Medicare as soon as you’re eligible. Medicare can help cover many healthcare expenses, but it’s important to be aware of coverage gaps, such as dental, vision and hearing services. You may want to consider supplemental insurance like Medigap or Medicare Advantage plans to fill these gaps.

Also, don’t forget about long-term care needs, such as assisted living or nursing home care, both of which can be a significant expense.

Tip #4: Be Selective With Your Retirement Savings Accounts

A couple reviewing retirement planning tips

Be selective with your retirement savings accounts because not all accounts are created equal.

There are several types of retirement savings accounts, such as 401(k)s, IRAs and Roth IRAs. Each comes with its own set of benefits and limitations, so to make the most of your retirement savings, you’ll need to choose the account(s) that align with your goals and financial situation.

For example, if you have access to an employer-sponsored 401(k) with matching contributions, you may want to start there. The employer match is essentially free money, and the tax benefits of a 401(k) can help your retirement savings grow faster.

However, if you’re in a lower tax bracket now than you expect to be in retirement, a Roth IRA may be a better option. Roth IRAs are funded with after-tax dollars, so your contributions won’t be tax-deductible. However, you won’t have to pay taxes on your withdrawals in retirement.

Also, don’t forget to consider the fees and investment options associated with each account. With so many options available, it can be challenging to determine the best retirement savings accounts for your needs.

This is where a financial advisor can help mitigate the burden of choosing an account and successfully planning for retirement.

Tip #5: Regularly Review Your Retirement Plan

Retirement planning is not a one-time task but an ongoing process.

Regularly reviewing and adjusting your retirement plan is crucial to staying on track. Life changes, such as marriage, children or career shifts, can impact your financial situation and retirement goals.

By periodically assessing your plan, you can make necessary adjustments to your savings rate, investment strategy and retirement timeline. Staying proactive and adaptable ensures that you remain aligned with your long-term objectives and can enjoy a financially secure retirement.

Tip #6: Build Flexibility into Your Income Plan

Retirement income does not come from a single source, and relying too heavily on one stream can limit your options later.

Social Security, retirement accounts, taxable investments and possible part-time income all interact differently for tax and cash-flow purposes. Planning how and when to draw from each source matters as much as how much you save.

A flexible income plan allows you to adjust withdrawals based on market conditions, tax rules and spending needs. For example, drawing from taxable accounts in some years and tax-deferred accounts in others can help manage taxable income. Keeping multiple income levers available gives you more control as conditions change.

Flexibility also helps manage risk. Market downturns, healthcare costs and changes in tax policy can all affect retirement plans quickly. Having reserves outside of required minimum distributions (RMDs) and Social Security allows you to respond without locking in losses or triggering avoidable taxes.

Building flexibility means planning ahead, not reacting later. Retirement plans that account for timing, account type and withdrawal order tend to hold up better over long retirement periods than plans focused only on account balances.

Bottom Line

As you embark on your retirement planning journey, it’s crucial to approach it with a strategic mindset. Understanding your financial needs and setting realistic goals are foundational steps that can significantly impact your future comfort and security. Life circumstances and financial markets can change, so staying flexible and informed will ensure your retirement strategy remains robust. By taking these proactive steps, you can confidently navigate the complexities of retirement planning and look forward to a financially secure future.

Tips for Retirement

A financial advisor can help you save for retirement by helping create a financial plan and even managing your assets. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
A 401(k) takes pre-tax dollars and allows them to grow tax-free. You can only contribute to a 410(k) through an employer and some employers will offer a match. That’s where your employer contributes a certain percentage to your account based on how much you contribute.
You can also save without going through an employer. That’s where an individual retirement account (IRA) comes in. An IRA offers the same tax benefits as a 401(k), but you can open and maintain an account no matter where you work. It’s important to keep in mind that IRA contribution limits are not as high as 401(k) limits.