What’s changing for pension savers and retirees in 2026

The new year will bring countless retirement-related changes for savers and retirees alike.

Here’s a summary of the main retirement changes for 2026.

The amount you can withdraw for your golden years will increase modestly. The contribution limit for Individual Retirement Accounts (IRAs) increases to $7,500, and the catch-up contribution limit for people over 50 goes to $1,100 for 2026.

The limits apply to both traditional and Roth IRAs, although Roth IRA eligibility depends on income levels. For Roth IRAs, the contribution income limit will increase slightly to $153,000 and $168,000 for singles and heads of household. For married couples filing jointly, the range increases to $242,000 and $252,000.

For 2026, you’ll be able to add a little more to your 401(k), 403(b), 457 plans, and Federal Thrift Savings Plan. The contribution limit increases to $24,500 from $23,500. There is a catch-up of $8,000 if you are 50 or older.

People who are between the ages of 60 and 63 can contribute an additional $11,250 in 2026 instead of the $8,000 if your plan allows.

One caveat: In 2026, a provision of the Secure 2.0 retirement legislation requires higher-income earners age 50 and older who earn more than $150,000 to make after-tax catch-up contributions to a Roth option in their employer-sponsored retirement plans.

If your employer’s plan doesn’t offer a Roth 401(k) account, one solution: Contribute the catch-up amount to a Roth IRA if your income is below the IRS income threshold.

Read more: These are the traditional IRA and Roth IRA limits in 2026

Contribution limits to health savings accounts, or HSAs—a key retirement tool—are also rising.

The new annual limit in 2026 for individuals will be $4,400. For family coverage, the HSA contribution limit increases to $8,750, with an additional $1,000 catch-up contribution for those 55 and older.

I’m a fan of these accounts for those who can invest the contribution instead of using it for current medical bills. You put money in tax-free, it accumulates tax-free, and it comes out tax-free for qualified health expenses. One rule: You must be enrolled in a high-deductible health care plan (HDHP) to contribute to an HSA. You can also open an account as a freelancer or business owner if you have a qualified HDHP.

Read more: HSA contribution limits for 2026: Here’s how much you can save

The Social Security Administration announced a 2.8 percent cost-of-living adjustment (COLA) for 2026. Starting in January, the increase will add an average of $56 a month to the 75 million elderly retirees and disabled workers who have struggled with higher prices this year.

Read more: How to find out the Social Security COLA increase in 2026

Medicare premiums also increase in 2026, preventing that increase in retirees’ Social Security checks.

The Centers for Medicare and Medicaid Services announced that monthly Part B premiums for 2026 will increase to $202.90, an increase of $17.90 this year. And the annual Part B deductible, which most people must pay before starting their Medicare coverage, will increase by $26 in 2026 to $283.

The agency also announced other Medicare cost increases in 2026, including high-income surcharges. Since 2007, the beneficiary’s monthly Part B premium is based on the beneficiary’s income. About 8 percent of Medicare users earn too much to qualify for standard Part B and Part D premiums and must pay the surcharges.

In 2026, Medicare beneficiaries with income exceeding $109,000 for single filers and $218,000 for joint filers will pay the surcharge. For these beneficiaries, total monthly Part B premiums will range from $284.10 to $689.90.

The calculations have a delay of two years. Whether you pay a surcharge in 2026 depends on the income shown on your 2024 tax returns.

For 2026, some Medicare Advantage insurers are dropping plans, hospital systems and doctors, reducing benefits and increasing out-of-pocket costs, including deductibles.

Medicare’s online plan finder at Medicare.gov allows you to review Medicare Advantage plan options, details about additional benefits, and the names of doctors and hospitals in the plans’ networks.

If you start the year and find you’re unhappy with your Medicare Advantage plan, you can make a change. Medicare Advantage open enrollment runs from January 1st through March 31st.

During this time, Medicare Advantage subscribers can change plans or transfer to Original Medicare. However, you cannot switch from a traditional Medicare plan to a Medicare Advantage plan. You’ll have to wait for the fall enrollment period for that.

Read more: Medicare Open Enrollment: How to add or adjust your coverage

Here’s some good news: Out-of-pocket costs for the top 10 Medicare-negotiated prescription drugs will drop by more than 50% on average for people in independent Part D plans when negotiated prices go into effect Jan. 1.

Next year, the Social Security Administration plans to close a large number of field offices, which provide in-person help to people applying for benefits, getting their Social Security cards and more.

Note that you can access many SSA services online if you have a My Social Security account. You can also call 1-800-772-1213, which connects you to automated services.

In 2026, the full retirement age (FRA) increases again. In November 2025, the FRA — the age at which you qualify to receive 100 percent of your Social Security benefits — rose to 66 years and 10 months for those born in 1959. Next November, the FRA will reach 67 for those born in 1960 or later, marking the end of the 42-year retirement period from age 65 to 65 years.

You can start collecting retirement benefits before FRA, at age 62, but your monthly check will be permanently reduced by up to 30%. If you can delay accessing your FRA benefits until age 70, you’ll earn delayed retirement credits. They add up to about an 8% annual increase in your benefit for each year until you reach 70. The credits stop accruing at that point, but the larger checks remain for the rest of your life.

Read more: What is the average pension savings by age?