4 Simple Ways to Pad Your Nest Egg in 2026

Whether you’re retired and trying to maximize your assets or just ready to build more long-term financial stability, 2026 could prove a critical turning point in your quest. Thanks in large part to broad regulatory updates last year, current and future retirees may have more opportunities to bolster their assets and insulate themselves from the effects of economic volatility, rising healthcare costs and other expenses. Here are four potentially beneficial money moves to consider:

Capitalize on the Contribution Bump

As has now been well documented, the IRS increased employee contribution limits for 401(k), 403(b) and other retirement plans this year to $24,500 from $23,500 for workers age 49 and younger. Not only can savers put more money toward their retirement, but they can also leverage the bump by leaving it invested so it compounds over the years.

In addition, people both in and out of the workplace may benefit from higher IRS contribution limits for traditional and Roth IRAs, which have risen from $7,000 to $7,500. The increase can be financially significant for both those without an employer-sponsored plan and workers seeking to diversify their retirement accounts. 

Take this Chance to Play Catch-Up

If you’re a worker age 50 or older who has lagged in saving for retirement, pre-tax catch-up contributions to plans such as 401(k)s, 403(b)s and governmental 457s can be a big help. This year, the limit for them has increased to $8,000 from $7,500. And coupled with the increase in the cap for pre-tax retirement savings as a whole to $24,500, maximum contributions are now set at $32,500. 

For people 60 to 63, meanwhile, there is even more incentive to put up funds because of the alluringly titled “super” catch-up contributions, which, thanks to the SECURE ACT 2.0 signed by President Biden in 2022, offer the opportunity to contribute an additional $11,250 to your 401(k), 403(b) or governmental 457 plan. 

Consider Roth IRA Conversion

If your money is currently invested in a traditional IRA and/or 401(k), converting to a Roth IRA might help you stay ahead of any economic volatility that may arise in 2026. While you will pay taxes in the year of conversion, there are benefits such as future qualified withdrawals being completely tax-free and having no lifetime required minimum distributions. You also get a viable estate planning tool, since Roth IRAs are passed on to beneficiaries tax-free. 

Prioritize Guaranteed Income Strategy

For retirees, guaranteed income consists of components such as Social Security, pensions and annuities that help cover core expenses including housing, healthcare, food and transportation. While there is a 2.8% cost-of-living bump in Social Security benefits this year, resulting in a $56 increase to average monthly benefits, from $2,015 to $2,071, the slight raise is offset by rising prices and healthcare costs in Medicare B and, of course, inflation. 

Additionally, financial institutions such as Fidelity offer options to bolster guaranteed income, such as purchasing a fixed-income annuity, which can provide predictable income in exchange for a lump-sum investment that can be for a set period or for life. Another option for boosting guaranteed income is delaying Social Security until age 70, which can maximize benefits through Delayed Retirement Credits.