The first thing retirement savers should do in 2026 to stay on track

Be it paying off a debt, or getting that elusive house or bulking up those 401(k) funds, the new year is the perfect time to set some new savings goals for the coming year. One way to go about it is making the best use of your hiked salary—-just add the additional income to the IRA or the 401(k) and see your retirement funds recover in no time.

When your paycheck increases, it’s easy to want to spend the extra money on clothes, subscriptions, or other small things that make life a little nicer. To avoid spending your raise, you should automate your retirement contributions from the very beginning. This means the money goes straight into your retirement accounts without you touching it.

Increase 401(k) contributions

If you have a 401(k) at work, tell your payroll department to increase your savings rate, as stated by The Motley Fool. If you have an IRA, set up an automatic monthly contribution that matches your raise. The goal is to make sure you never get used to the extra money, so you won’t miss it when it goes to retirement savings. Check what 401(k) match your employer gives this year and try to get the full match. Missing this is like leaving free money on the table.


If your raise doesn’t get you the full employer match, find ways to increase contributions. You can spend less or do a side job to get more money into your retirement plan. An employer match is important because it adds to your retirement savings and lets you invest more money that can grow over time. Look at your investments at the start of the year. Make sure your IRA or 401(k) portfolio is balanced and not too heavy in one stock or fund.

Watch fees and Social Security

If some of your stocks went up a lot in 2025, they might make up too much of your portfolio. You should sell a bit and buy others so you’re not risking too much in one company. Pay attention to fees in your 401(k), as noted by The Motley Fool. Some funds, like actively managed mutual funds or target-date funds, can cost a lot. Low-cost index funds are usually better. Managing your retirement accounts early in the year helps you put your raise into savings, rebalance your portfolio, and get every free 401(k) dollar from your employer.

Most Americans are behind on retirement savings, but there are little-known Social Security strategies that can help boost your income. One trick could give you up to $23,760 extra per year in Social Security if you plan correctly, as stated by The Motley Fool. Maximizing Social Security and starting early with retirement savings can help you retire with more confidence and peace of mind.

FAQs

Q1. How can I use my 2026 raise to save for retirement?

You can automatically put your raise into your IRA or 401(k) to grow your retirement savings fast.

Q2. What is the best way to get full 401(k) employer match?

Increase your contributions early in the year so you claim every dollar your employer offers.