Should You Retire in 2026?

5 Key Factors to Help You Decide

If you’ve been eyeing 2026 as your retirement year, you’re not alone. With rising market uncertainty, changing tax rules, and updates to Social Security and Medicare, this year brings both opportunities and risks for would-be retirees.

So… should you retire in 2026? Here are five essential questions to help you make the decision with clarity.

1. Are You Ready for the New Social Security Landscape?

In 2026, Social Security benefits received a 2.5% cost-of-living adjustment (COLA).
But Medicare Part B premiums also increased, cutting into that raise—especially for higher-income retirees who now face larger IRMAA surcharges.

Ask yourself:

• Are you planning to claim Social Security this year?
  
• Will IRMAA affect your Medicare premiums based on your income two years ago (2024)?
  
• Have you modeled your net benefit after healthcare costs?
  

If not, consider delaying your claim or reducing taxable income through Roth conversions or tax-aware drawdowns.

2. Have You Accounted for RMD Rule Changes?

The required minimum distribution (RMD) age is now 73, thanks to SECURE 2.0. That may give you more time to grow your accounts, but it could backfire later if your balances grow too large—leading to higher taxes and Medicare premiums when you’re least expecting it.

In 2026, consider:

• Doing Roth conversions while in a lower tax bracket
  
• Running projections on your future RMDs
  
• Strategically drawing down taxable accounts now to avoid tax spikes later
  

3. Can You Bridge the Healthcare Gap (If Retiring Before 65)?

If you’re retiring before Medicare eligibility at age 65, make sure you have a plan for health coverage. ACA premiums can be substantial without subsidies, and private insurance can eat into your retirement income quickly.

In 2026:

• ACA premium subsidies are shrinking for some income levels
  
• Out-of-pocket healthcare costs are trending upward
  
• Many early retirees are opting for part-time work or phased retirement to maintain benefits
  

4. Is Your Income Strategy Built for Volatility?

Even with a solid nest egg, 2026 brings market uncertainty. Higher interest rates, geopolitical events, and inflation are reshaping retirement portfolios.

A strong plan should include:

• A reliable income floor (like annuities, pensions, or cash reserves)
  
• A bucket strategy to protect against sequence-of-returns risk
  
• Flexibility to adjust spending without panic
  

Retirement is more than reaching a number—it’s about sustaining income no matter what the markets do.

5. Are You Retiring To Something… or Just From Something?

Financials are only one part of the decision. You need to know what a fulfilling life looks like post-career.

Ask yourself:

• How will I structure my days?
  
• Do I have a sense of purpose, community, and health routines?
  
• What passions or projects will give meaning to this next phase?
  

Many successful retirees build this plan before giving notice at work.

So… Should You Retire in 2026?

✅ If you’ve mapped out your income, accounted for taxes, modeled your healthcare costs, and created a lifestyle vision, then yes—2026 could be your year.

⚠️ If you’re unsure about any of these areas, it might be wise to pause and plan—because retiring without a strategy in this environment can be costly.

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Ready to Retire Confidently?

A personalized retirement readiness check can help you clarify if 2026 is truly the right year.
Call Barb Swiatek at 719.597.2179 to schedule your custom review and retirement timeline strategy session.