Retirement changes 2026: The year 2026 will bring a wave of retirement changes that affect how much people can save, what retirees receive from Social Security, and how much they will pay for healthcare, as per a report. Some updates offer small financial lifts, while others may reduce take-home benefits.
IRA and Roth IRA contribution rules change in 2026
Workers will be able to save more in retirement accounts. The IRA contribution limit rises to $7,500, with a $1,100 catch-up for those 50 and older, as per a Yahoo Finance report. Roth IRA income ranges increase to $153,000 to $168,000 for singles and $242,000 to $252,000 for married couples filing jointly.
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401(k) and workplace retirement plans get higher caps
Workplace plans also see higher limits. Contributions to 401(k), 403(b), 457 plans, and the Thrift Savings Plan rise to $24,500, with an $8,000 catch-up for those 50 and older. Workers ages 60 to 63 can contribute $11,250 if their plan allows, as per the Yahoo Finance report.
New Roth rule affects higher-income workers over 50
Starting in 2026, higher earners over age 50 making more than $150,000 must make catch-up contributions on an after-tax Roth basis. If a Roth option isn’t available at work, eligible workers may use a Roth IRA.
HSA contribution limits rise for individuals and families
Health savings account limits increase as well. Individuals can contribute $4,400, families $8,750, with a $1,000 catch-up for those 55 and older, provided they are enrolled in a high-deductible health plan.
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Social Security benefits get a COLA increase in 2026
Social Security recipients will receive a 2.8% cost-of-living adjustment, adding an average of $56 per month starting in January.
Medicare Part B premiums and deductibles go up
Medicare costs are rising. Monthly Part B premiums increase to $202.90, and the Part B deductible climbs to $283. Higher-income beneficiaries earning more than $109,000 individually or $218,000 jointly will pay income-based surcharges, with total monthly premiums ranging from $284.10 to $689.90, based on 2024 income, as per the Yahoo Finance report.
Medicare Advantage plans see coverage and cost changes
Medicare Advantage plans are changing, with some insurers dropping plans, hospitals, and doctors while raising deductibles and out-of-pocket costs. Enrollees can switch plans or move back to original Medicare during Medicare Advantage open enrollment from January 1 to March 31, as per the Yahoo Finance report.
Prescription drug costs drop for select Medicare medications
There is relief on prescription drug costs. Out-of-pocket spending for the first 10 Medicare-negotiated drugs will fall by more than 50% on average for people in standalone Part D plans starting Januray 1.
The Social Security Administration is reportedly planning to close many field offices in 2026, though services remain available online or by phone.
Full retirement age reaches 67 in 2026
Full retirement age reaches 67 in November 2026 for people born in 1960 or later. Claiming benefits at 62 still reduces payments by up to 30%, while delaying past full retirement age increases benefits by about 8% per year until age 70.
Social Security wage cap increases
The Social Security wage cap rises to $184,500, meaning higher earners will pay payroll taxes on more income. For those working while claiming benefits before full retirement age, benefits may be temporarily withheld if earnings exceed $24,480.
New tax break for seniors in 2026
Finally, a temporary tax break arrives for seniors. Taxpayers 65 and older can claim a $6,000 deduction in 2026, or $12,000 for married couples if both spouses qualify, as per the Yahoo Finance report. The deduction phases out for incomes above $75,000 for singles and $150,000 for couples and is available to both itemizers and non-itemizers.
FAQs
How much will Medicare Part B cost in 2026?
Monthly premiums increase to $202.90, with the deductible rising to $283.
How much will Social Security benefits increase in 2026?
Benefits will rise by 2.8%, adding an average of $56 per month starting in January.