Retirement Savings and Medicare Cost Changes for 2026

As 2026 approaches, several key retirement-related financial limits and healthcare costs are set to change, impacting retirement planning strategies. Individual Retirement Account (IRA) contribution limits will rise, allowing savers under 50 to contribute up to $7,500, and those 50 and older to contribute up to $8,600 due to an increased catch-up contribution limit. Similarly, 401(k) contribution limits will increase, with those under 50 able to contribute $24,500 and individuals 50 and over able to contribute up to $32,500, plus a specialized catch-up option for ages 60 to 63 allowing contributions up to $35,750. A significant regulatory change affects 401(k) catch-up contributions for higher earners. Starting in 2026, individuals earning more than $145,000 will only be allowed to make catch-up contributions through Roth 401(k) plans, which utilize after-tax dollars but provide tax-free withdrawals during retirement. Health Savings Account (HSA) contribution limits are also set to increase, rising to $4,400 for self-only coverage and $8,750 for family coverage, with an additional $1,000 catch-up for those age 55 and older. These changes encourage greater tax-advantaged saving for medical expenses related to retirement. Medicare premiums and deductibles will increase in 2026. The standard monthly premium for Medicare Part B will rise from $185 to $202.90, and deductibles for Parts A and B are increasing as well. Hospital inpatient deductibles and daily coinsurance rates for hospital and skilled nursing facility stays are also set to go up, resulting in higher out-of-pocket healthcare costs for Medicare beneficiaries. These adjustments in retirement savings limits and healthcare costs underscore the evolving landscape for retirement planning. Understanding these changes is critical for insurers, financial advisors, and retirees to adjust strategies in the face of increasing contribution opportunities but higher healthcare expenses.