7 New Year’s Financial Resolutions

3. Take advantage of retirement plan ‘catch-up’ contributions

If your nest egg isn’t quite where you want it to be, make 2026 the year to prioritize catch-up contributions, suggests Matthew Argyle, a certified financial planner at Encore Retirement Planning in South Jordan, Utah.

The IRS sets annual caps on contributions to retirement accounts, but the limits are higher for taxpayers age 50 and older. These catch-up contributions are “a chance to add more to retirement accounts just as your earnings and wisdom peak,” Argyle says. “For many, those last 10 years of saving make a bigger difference than the first 30.”

Catch-up contribution limits are adjusted annually for inflation. In 2026, the standard cap for 401(k) savers under age 50 is $24,500, but most older workers can add as much as $8,000 more (up from $7,500 in 2024), for a maximum contribution of $32,500. Savers ages 60 through 63 have a higher catch-up cap — they can stash an extra $11,250 in a workplace plan, for a maximum contribution of $35,750.

For both traditional and Roth IRAs, savers can contribute up to $7,500 for 2026, up from $7,000 in 2025. Those age 50 and older can put in an extra $1,100, for a max contribution of $8,600.

4. Audit your insurance policies

Your insurance needs can change as you age. Often, it makes sense to drop certain policies or take out new types of coverage as risks arise. “Insurance should evolve with your life,” Argyle says.

For example, more than half of adults reaching age 65 today will require long-term care at some point, according to the federal Department of Health and Human Services. A long-term care insurance policy can help cover the costs of home health services or care in a nursing home or assisted living facility.

“There is no such thing as preparing too early when it comes to long-term care,” Cooper says. “The costs are unimaginable and typically involve individuals having to liquidate a majority of their investments or potentially selling their home to afford the care.”

While you’re assessing your insurance needs, double-check your life insurance coverage, too. If you don’t have dependents anymore, you may be able to save money by reducing your plan’s death benefit or canceling the policy entirely. 

“If your children are independent and your debts are gone, you probably don’t need life insurance,” Argyle says. “But if a spouse depends on income that would vanish at your death, keeping coverage in place can still serve as a safety net.”

5. Shred debt and boost your credit score

If you’re carrying a credit card balance, personal loan or other high-interest debt, paying it off should be a top priority this year, says D’Andre Clayton, cofounder of Clayton Financial Solutions in Greensboro, North Carolina.

Not only are debts reducing what you can stash away for retirement, but paying them down can also improve your credit score, allowing you to qualify for better interest rates on mortgages and auto loans. 

“Insurance carriers, whether it be property, casualty, life or car insurance, they all look at your credit to see if you are a good steward,” Clayton says. “And oftentimes, your interest rates are changed based on that factor.”