Failing to save enough for retirement is the No. 1 financial regret for older Americans, according to a recent survey. Roughly 26% of Gen Xers and nearly 37% of baby boomers say it’s their top money mistake.
But it may not be too late for you.
New IRS limits for 2026 have opened the door for savers to stash away more cash. By making these moves now, you can build a nest egg that leaves no room for regret.
1. Maximize the new catch-up limits
If you’re 50 or older in 2026, the IRS has expanded your ability to save tax-advantaged money.
The standard 401(k) limit has risen to $24,500. On top of that, the catch-up contribution for workers aged 50 and over is now $8,000. This means most older workers can funnel a total of $32,500 into their retirement accounts this year.
There’s an additional tier for those specifically aged 60 through 63. Under a provision in the Secure 2.0 Act, your catch-up limit increases to $11,250, bringing your total potential contribution to $35,750.
Whether you qualify for the standard $8,000 catch-up or the higher tier, automating these contributions is the most effective way to close a savings gap.
2. Navigate the high-earner Roth rule
If you’re 50 or older and plan to use catch-up contributions, you must verify your income level. A new rule effective for 2026 changes how high earners save.
If you earned more than roughly $150,000 in 2025, you’re no longer permitted to make pre-tax catch-up contributions to workplace retirement accounts. The IRS now requires these contributions to be made on a Roth (post-tax) basis.
This change eliminates the immediate tax deduction on your catch-up dollars, but it ensures those funds grow tax-free.
Action item: Check your payroll settings immediately. If you exceed the income threshold and your plan does not automatically adjust, your contributions could be rejected. Ensure your catch-up is explicitly routed to the Roth side of your 401(k).
3. Audit ‘vampire’ expenses
While catch-up contributions are age-restricted, finding the cash to invest is a universal necessity.
Impulse spending and unused subscriptions are frequently cited as top sources of financial regret. To capitalize on the new IRS limits, run a strict audit of your recurring expenses.
Review your bank and credit card statements for the last 90 days. Identify streaming services, gym memberships, or subscription boxes you do not use.
Redirecting just $300 a month from wasted spending into your 401(k) adds $3,600 to your retirement savings annually. This is often the easiest way for workers in their 40s to free up cash for the standard $24,500 limit.
4. Leverage the HSA triple dip
The health savings account (HSA) remains one of the most efficient retirement vehicles available to savers of any age. For 2026, the limit has risen to $4,400 for individuals and $8,750 for those with family coverage. If you’re 55 or older, you can add a $1,000 catch-up contribution.
The HSA offers three distinct tax advantages:
- Tax-deductible contributions: You lower your taxable income today.
- Tax-free growth: Your investments grow without being taxed.
- Tax-free withdrawals: If used for qualified medical expenses, the money comes out tax-free.
Smart savers use the HSA as a stealth retirement account. Instead of draining it for current medical bills, they pay out of pocket, save the receipts and let the HSA compound for decades. In retirement, those funds can cover Medicare premiums or long-term care costs tax-free.
Learn more about HSAs in “6 Reasons This Is the Best Type of Retirement Account out There.”
Close the gap while you can
The window to fund your retirement is finite. Whether you’re 45 and maxing out your base limit or 62 and utilizing the higher catch-up, the goal is the same: to fund the lifestyle you want to live in retirement.
You can’t change your past savings rate, but you can control your 2026 strategy. Adjust your contributions today to ensure you don’t look back at this year with regret.
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