(NEXSTAR) — When 2026 rolls in in just a few days, it will bring with it tax changes, “Trump accounts” for kids, bigger paychecks for some, and the possibility of sizable tariff refunds.
Those planning to retire, or who have already retired, will see some notable changes in the new year as well.
That includes changes to when you may be able to retire, how much you can save for retirement, and how much your Social Security payments will increase.
You can save more for retirement
Last month, the IRS announced it will raise the contribution limits for 401(k) plans and IRAs in 2026. It’s been two years since the contribution limits for both retirement savings plans increased.
The maximum annual amount you can contribute to your 401(k) next year will rise to $24,500. The same limit will apply to 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan.
If you are 50 years old or older, the catch-up contribution limit for most of these plans will be $8,000 in 2026, a $500 increase that makes your annual maximum contribution $32,500. The catch-up contribution limit for those between the ages of 60 and 63 will remain at $11,250.
For IRAs, the maximum contribution limit will climb to $7,500. For those who are 50 or older, the cost-of-living adjustment for the catch-up contribution limit bumps it to $1,100.
The phase-out income thresholds for IRAs, Roth IRAs, and the Saver’s Credit are also shifting. You can review those here.
Retirement age climbs in 2026
The age at which you can retire and receive full Social Security benefits will reach a new high in 2026.
You can begin claiming retirement benefits from Social Security when you turn 62, but it won’t be the full amount. At full retirement age, or FRA, your monthly benefits do not face a permanent reduction. (You can increase your payment if you put off retirement, too.)
Your FRA varies based on when you were born. Since 2001, it has been slowly moving back two months for every age group.
Next year, the final shift outlined in a 1983 amendment for Social Security will take place, moving the FRA for those born in 1960 and later to 67. That means if you were born in 1960, you won’t reach FRA until 2027. The SSA offers a calculator to determine when you will reach your FRA.
The maximum Social Security benefit will also increase in 2026. For those who retire at their FRA, the most they could receive monthly will jump to $4,152, up from $4,018 this year.
COLA increases for Social Security payments
If you are already receiving Social Security payments, you will soon notice your payment increase slightly.
In October, the Social Security Administration announced a 2.8% cost-of-living adjustment, or COLA, for beneficiaries.
The same increase applies to those receiving Supplemental Security Income, who will notice it first. Because Jan. 1, New Year’s Day, is a federal holiday, the month’s SSI payments will be sent out on Dec. 31.
Subsequent payments from Social Security will be disbursed based on the beneficiary’s birthday, as usual.