Finance: Smart Moves with the 2026 COLA and Contribution Limits
The 2.8% Social Security COLA for 2026 is now in effect, increasing the average retired worker’s monthly benefit by about $56 (from roughly $2,015 to $2,071). This modest boost helps ease the impact of rising costs for millions of beneficiaries.
Key 2026 retirement numbers to know:
401(k)/403(b) limits: Up to $24,500 employee contribution, plus $8,000 catch-up for age 50+ (total $32,500). For ages 60–63, the higher “super” catch-up remains $11,250 (potentially up to $35,750 total, depending on your plan). Note that high earners (FICA wages over $150,000) may need to direct catch-up contributions to Roth accounts.
IRA limits: $7,500 base contribution, with $1,100 catch-up for age 50+ (total $8,600).
Keep 1–2 years of expenses in stable holdings to navigate market swings calmly. Revisit long-term care planning—costs remain a top concern—and consider how guaranteed income streams, Roth strategies, or HSAs might fit your overall picture.
Review your withdrawal plan and budget twice a year. Many find that a small part-time pursuit adds both extra income and a sense of purpose. The real win? Building enough confidence to enjoy retirement fully, without money worries shadowing the good days.
