By Derrick Longo, MBA, Partner and Senior Wealth Advisor
When people ask what 2026 will mean for someone preparing to retire, the honest answer is that the fundamentals have not really shifted. That might not sound exciting, but it is actually reassuring. Markets are always unpredictable. There will always be new presidents, new Federal Reserve chairs, new technology, or a crisis dominating the headlines.
What does not change is the role your personal situation plays in your financial plan. Retirement planning should be built around what is happening in your life, not around the market cycle. If you are nearing retirement and have a child in college, helping family financially, or are managing multiple priorities at once, those realities matter more than how the S&P 500 is moving in any given quarter. Markets will move and headlines will shift, but a solid plan is designed to work through it all.
When clients worry about volatility heading into retirement, it typically comes down to cash flow concerns. Most people want to know whether they have enough stable income and conservative assets to get through a down market without forcing lifestyle changes. This is where an advisor looks at emergency savings, bonds, pensions, Social Security and actual spending levels to assess the situation and offer clear guidance. Because the market is so difficult to time, especially around major life transitions, the more reliable approach is to focus on what the plan is designed to support and focus on what we can control.
A lot of the tangible planning for 2026 comes down to staying current with the rules. Under the SECURE Act 2.0, certain catch-up contributions to 401(k)s are now required to go into Roth accounts rather than pre-tax.1 Gifting amounts2 and 401(k) limits have also changed for 2026,3 and State and Local Tax (SALT) limits have been temporarily increased as well.4 Each year brings bracket creep across many different planning categories, which makes it important to pay attention and proactively game plan with your advisor. Even with these adjustments in place, it is often the assumptions people make heading into retirement that end up creating the biggest challenges.
For those nearing retirement, a few common planning mistakes tend to come up. One of the biggest is assuming income needs to be replaced dollar for dollar. In many cases, that is simply not true. Once you retire, certain payroll taxes go away, and you are no longer contributing to a 401(k), which means some of the income you were used to earning was never actually being spent. Understanding the true cost of funding retirement, rather than anchoring to a paycheck number, often changes the picture significantly.
Another area that frequently gets overlooked is healthcare. For anyone retiring before the Medicare age, there needs to be a clear plan for coverage and costs, whether it comes through a spouse, a private policy, or another option. Without that discussion upfront, healthcare expenses can become a surprise at exactly the wrong time. Even after Medicare begins, certain planning moves, such as large Roth conversions or one-time income events, can affect Medicare premiums through IRMAA brackets years later.5
Preparing for retirement in 2026 is less about predicting what markets will do and more about planning around what is happening in your own life. Markets, policies and headlines are ever-changing, but your plan must be built to support your priorities and cash flow needs for retirement.
If you have questions about retirement or want to review your plan, please contact your Exencial advisor.
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S&P 500® Index (S&P 500®) is widely regarded as the best single gauge of large-cap U.S. equities. The index includes 500 leading companies and covers approximately 80% of available market capitalization.