This Is the First Thing Retirement Savers Should Do in 2026

The start of a new year is a great time to set financial goals and figure out what you want to accomplish over the next 365 days. And you may have some lofty goals in store for 2026.

Perhaps this will be the year you buy a house or pay off debt. Or perhaps it's the year you'll supercharge your retirement savings.

Image source: Getty Images.

If you want 2026 to be the year you make great progress with your IRA or 401(k), there's one key move to make. And you should make it immediately.

Take advantage of your incoming raise

It's common for people to see their paychecks go up when a new year arrives. If you're getting a raise in 2026, one of the best things you can do with that money is send it into your IRA or 401(k) plan immediately.

Why the rush? Once you see your raise hit your paycheck, you may be tempted to spend it on something -- a subscription service, new apparel, or something else that enhances your life a bit.

That's totally understandable. But the moment you get used to having more money in your paychecks, the harder it may be to part with that money for retirement savings purposes.

That's why your best bet is to automate larger contributions to your retirement savings from the start. If you have a 401(k) plan through work, tell your payroll department that you want to increase your savings rate. If you have an IRA, set up an automatic monthly contribution that reflects the money you'll be getting in your raise.

The key is to take temptation off the table from the start. If you never get used to having that extra money, you shouldn't miss it.

Other ways to make the most of your retirement savings in 2026

While banking your raise is a great way to get your retirement savings to a good place in 2026, that's not the only move you should make in your IRA or 401(k).

First, if you have a 401(k), make sure you know what workplace match you're entitled to this year. And then, find a way to snag that match in full so you're not giving up free money for your retirement.

Your raise may push your contribution rate high enough to claim your full 401(k) match. But if not, you'll want to use other strategies to snag that complete match, such as reducing spending or looking into a side hustle for an income boost.

An employer match is not something you want to give up, because in addition to losing out on principal contributions to your 401(k), you lose out on the opportunity to invest that money and grow it.

And speaking of investing, the start of a new year is a great time to assess your portfolio and make sure it's working for you. If you have an IRA and own individual stocks in that account, make sure your portfolio is balanced.

It may be that certain stocks of yours gained a lot of value in 2025 and now comprise a large percentage of your portfolio. If so, you may want to rebalance so you're not overly invested in any single company.

If you have a 401(k), pay attention to the investment fees you're paying. Unlike IRAs, 401(k)s typically limit you to different funds, as opposed to individual stocks. If you're losing a lot of money to fees, you may want to shift away from actively managed mutual funds or target date funds and instead try some low-cost broad market index funds.

Pay attention to your retirement account early on

It's easy to get caught up in a busy routine once the new year kicks off. So it's crucial that you spend a little time managing your retirement account early on.

If you're getting a raise, you have a prime opportunity to boost your savings rate this year. And on top of that, it's a good time to make sure your portfolio is spot-on and that you're setting yourself up to snag every free 401(k) dollar your employer is willing to give you.

The Motley Fool has a disclosure policy.