Retirees will be seing some changes next year; at least five, to be more exact. Included in those shifts are an increase on the contribution limits for IRA, 401(k) and HSA, a new restriction for the “catch-up contributions,” and Medicare will be more expensive in 2026.
Why is so important to keep up with the changes? Preparing for retirement doesn’t have to wait until you’re in your sixties. And thinking about what life’s going to be after work is key to decide what your choices are: IRA, Roth IRA and 401(k).
401(k) contribution increase, IRA and HSA new limits, and restrictions
Let’s start with IRA increases in 2026: Last year, the annual limit was $7,000 for people younger than 50 years old and $8,000 forthose older than 50.
That rule will be changing next year, allowing people younger than 50 to contribute up to $7,500 and those over 50 years old a total of $8,600. Making this an increase of $500 and $600.
401(k) will have a bigger marge from January 2026:
- The limit for people under 50 will be $24,500 – increasing $1,000 comparing to 2025 ($23,500).
The limit for people 50+ will be $32,500 – increasing $2,500 compared to 2025 ($30,500).
- For people between 60 and 65 years old, there will be a special increase; up to $35,750.
However, there are some restrictions to the new 2026 updates:
Only savers with over 50 years old would be able to catch up on a 401(k) or Roth IRA if they earned more than $145,000 in gross income.
HSA will have its limits too: individual coverage will go up to $4,400, while families can go up to $8,750. Those who are 55 years old or more, can still add a catch-up of $1,000 though.
Medicare costs are going up
In 2026, Medicare costs will be facing some changes too:
- The standard monthly premium of Part B will increase from $185 (2025) to $202.90 (2026).
- The annual deductible Part B will go from $257 to $283.
Most people do not pay a premium for Part A, but the hospital deductible increases from $1,676 to $1,736.
- Daily hospital coinsurance will increase from $419 to $434.
- Specialized nursing center (daily) goes from $209.50 to $217.
Retirement planning in the U.S.—a worrying reality
Recent data from the Economic Innovation Group shows that around 44% of full time working American citizens are not currently participating in any retirement plans. And another survey, from Gallup News, found that about 40% of adults have no investments whatsoever for retirement.
These numbers are quite big if we think about the actual amount of money people need to maintain a decent lifestyle after retirement—without even counting basic needs. But when to start saving is a decision that everyone makes depending on their needs.
Adjusting budgets for the upcoming year
If you are thinking about starting to plan your retirement, better go check IRA, 401(k) and HSA.
And for those already contributing, pay attention because the 2026 changes can potentially help you save additional thousands of dollars in the long term with the increased limits. However, if limits are still an issue for you, a Roth IRA is another option that does not have minimum distributions required; you can make the contributions after taxes, but they offer tax-free profits and tax-free withdrawals.
Social Security benefits from retirement are certainly important, but to have other options to not only depend on the government can be really important too. Someone who’s receiving their SS Retirement benefit today—earning since the early 90’s—might notice a gap between what the same earnings were worth back then, and what they can actually afford today, but time pases by and even with cost-of-living adjustments, prices and everyday expenses rise over time...
So to have a second option doesn’t sound like a bad idea if you imagine that probably in 30 years from now, money won’t be able to get you the same things either.