This month’s must-read, Setting Financial Goals for 2026: A Guide for Pre-Retirees and New Retirees, makes it the perfect time for pre-retirees and new retirees to get excited about setting some smart financial goals. Life might feel a bit uncertain with changing taxes, rising healthcare costs, and market ups and downs, but with a clear plan, you can build (or maintain) a retirement that’s secure and full of the things you love. The big ideas are pretty straightforward: aim to replace 70-80% of your pre-retirement income, watch out for risks like market dips or long-term care expenses, and take advantage of fresh opportunities like new tax deductions. It’s all about starting early if you can, diversifying your savings, and focusing on what really matters to you—whether that’s travel, family time, or just peace of mind.

The good news? There are seven simple, actionable steps to make it happen. Start by figuring out your timeline and what you truly need, then prioritize your goals, create a realistic budget, and tackle any debt. Max out those retirement contributions (especially with catch-ups!), get smart about taxes and withdrawals, protect yourself with the right insurance and estate planning, and review everything regularly with a pro. Whether you’re still building your nest egg or already enjoying retirement, these steps help you create a strong foundation and keep things running smoothly. Here’s to a bright, worry-free future ahead!

A Guide for Pre-Retirees and New Retirees

As 2026 unfolds, pre-retirees (those within a few years of retirement) and new retirees face a unique landscape shaped by economic uncertainty, tax changes, and rising costs for healthcare and living expenses. Setting clear financial goals is crucial to ensure a secure and fulfilling retirement. Whether you’re aiming to maximize income streams, minimize taxes, or protect against unexpected risks, a structured approach can help. This article outlines key goals tailored to your stage of life and provides actionable steps to achieve them, drawing on expert insights from financial institutions.

Understanding Key Financial Goals for 2026

For pre-retirees, goals often focus on building up savings and preparing for the transition, such as maxing out contributions to retirement accounts and paying down debt. New retirees, on the other hand, prioritize sustainable withdrawal strategies, tax-efficient income, and safeguarding assets against market volatility or long-term care needs. Common objectives include:

• Replacing 70% to 80% of pre-retirement income through savings, Social Security, and other sources.
• Managing sequence of returns risk to avoid depleting portfolios during market downturns.
• Leveraging new tax deductions and strategies amid policy shifts.
• Planning for healthcare and long-term care, where costs can average $70,800 annually for assisted living or over $111,000 for nursing homes.

These goals align with broader retirement planning principles, emphasizing early action and diversification.

Steps to Achieve Your Financial Goals

Achieving financial security in retirement requires a systematic plan. Below are seven practical steps, inspired by established guides, to set and pursue your 2026 goals.

1. Assess When and How to Start Planning: Begin by evaluating your timeline. If you’re a pre-retiree, start as early as possible to leverage compound growth; for new retirees, it’s never too late to refine your strategy. “Begin as early as possible to allow more time for money to grow, though it is never too late to start saving strategically.” Calculate your retirement needs by estimating expenses—aim to replace 70% to 90% of your pre-retirement income, adjusting for changes like reduced commuting costs or increased travel.

2. Narrow Down and Prioritize Goals: Identify what matters most, such as debt reduction, emergency funds, or legacy planning. For pre-retirees, “Narrow down your goals” by deciding on retirement activities and committing to them. New retirees should prioritize predictable income sources. Balance retirement savings with other needs, like building an emergency fund or utilizing employer matches in workplace plans.

3. Create a Budget and Manage Debt: Map out your expenses using your current spending as a baseline. “Now’s the time to get serious about your plan for spending in retirement.” Review debts and decide whether to pay them off before retirement or carry them forward. Tools like budget planners can help finalize a realistic budget. For new retirees, focus on essentials covered by guaranteed income like Social Security or annuities.

4. Maximize Contributions and Investments: Pre-retirees should “Take full advantage of both your contributions (including catch-up contributions) and your employer’s match” in 401(k)s or similar plans. Shift to a conservative mix as retirement nears, with stocks for growth and bonds for stability. New retirees can “Adjust Your Investment Strategy to Support Your Goals” by assessing asset allocation to combat volatility and sequence of returns risk.

5. Strategize Taxes and Withdrawals: Leverage opportunities like the new $6,000 senior deduction for those 65+ or quadrupled SALT cap. “Explore Roth Conversion” to pay taxes now at potentially lower rates, allowing tax-free growth later. For RMDs starting at age 73 (or 75 post-2033), “Strategize RMDs” by aggregating accounts and reinvesting excess in brokerage accounts to minimize market impact. Use QCDs for charitable giving to reduce taxable income.

6. Protect Against Risks with Insurance and Estate Planning: Review coverage for health, long-term care, and life insurance. “Review Your Insurance Coverage” and prepare for Medicare gaps, maximizing HSAs if eligible. Boost predictable income with annuities: “Use fixed income annuities for guaranteed payments from lump sum, for set periods or life.” For estate planning, “Have a Plan for After You’re Gone” by updating documents and considering the 10-year rule for inherited accounts.

7. Review Annually and Seek Professional Help: Monitor progress yearly, adjusting for life changes. “Work with a Team of Wealth Management Professionals” for tailored advice on taxes, investments, and more. This collaborative approach ensures you don’t miss opportunities.

By following these steps, pre-retirees can build a robust foundation, while new retirees can sustain their lifestyle amid uncertainties. Remember, personalized advice from a financial advisor is recommended.

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Sources

1. Fidelity Investments. “7 Smart Money Moves for 2026 Retirement Planning.” Accessed January 9, 2026. https://www.fidelity.com/learning-center/personal-finance/retirement/2026-money-moves
2. NerdWallet. “Retirement Planning: A 5-Step Guide for 2026.” Accessed January 9, 2026. https://www.nerdwallet.com/retirement/learn/retirement-planning-an-introduction
3. Charles Schwab. “Pre-Retirement Playbook.” Accessed January 9, 2026. https://workplace.schwab.com/learning-center/pre-retirement-playbook
4. MOD Wealth Management. “5 Financial Planning Opportunities to Consider Before 2026.” Accessed January 9, 2026. https://www.modwm.com/financial-planning-opportunities/