3 Rookie Retirement Savings Mistakes to Avoid in 2026

Sometimes, despite your best efforts, retirement savings can fall by the wayside. And you're certainly not alone if you've had that experience.

After all, when you have pressing bills to cover, it's kind of hard to say to yourself, "I guess I'll pick up some extra shifts or cut my spending." It's a lot easier to say, "Welp, guess my IRA isn't getting funded this month."

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But if you've determined that 2026 is going to be the year when you kick your retirement savings into full gear, then it's important not to let yourself get derailed by silly mistakes. Here are a few blunders you risk making if you're fairly new to retirement savings -- and how to avoid them.

1. Not snagging your full 401(k) match

If you have access to a 401(k) plan through your job, there's a good chance it comes with some type of matching incentive. Giving up any of that free money is a bad idea, though, because it could mean losing out on a lot more than you think.

Let's say you forgo a $3,000 match in your 401(k) at age 30. If you don't retire until age 67, which is your full retirement age for Social Security purposes, it means you'll be giving up 37 years of growth on that $3,000.

Imagine your 401(k) typically gives you an 8% yearly return, which is a bit below the stock market's average. By giving a $3,000 employer match at age 30, you could end up with almost $52,000 less by age 67.

If you're serious saving for retirement in 2026, find out what your workplace match entails, and do what you can to get it. That could mean sticking to a tight budget so you're able to better fund your 401(k), or working a side job as needed.

2. Not understand your employer's 401(k) vesting schedule

There's a reason many employers offer a 401(k) match -- they want to entice employees to stay put. To that end, some workplaces impose a vesting schedule that dictates when you get to keep your 401(k) match. It's important to know if you employer has that rule, and how it works.

Let's say you're planning to leave your job in a year, but your employer requires you to remain employed for three years to capture your match in full. That's sort of thing is essential to know.

That said, rest assured that if your company has a 401(k) vesting schedule, it only applies to employer matching dollars. Any money you contribute to your workplace retirement plan out of your own paycheck is yours to keep in full, no matter how long you remain employed.

3. Investing too conservatively for your age

Whether you're saving for retirement in a 401(k), an IRA, or another account, it's important to make sure your money is able to grow at a decent pace. You need your money to grow faster than inflation, which means it's a bad idea to invest conservatively simply to avoid stock market volatility.

If you're a good number of years away from retirement, it means you have time to ride out stock market downturns. It's only once you're within a few years of retirement that you should think about scaling back on stocks in favor of more stable assets, like bonds.

However, you can protect yourself from market volatility by diversifying within your portfolio. You can do that by investing in stocks across a range of industries, or by buying shares of an S&P 500 index fund.

The wrong decisions in the context of retirement savings could easily mess up your efforts. So if you're going to be pushing yourself to work hard and save hard in 2026, do your best to avoid these key blunders.

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