If your social media feeds have looked like ours lately, you’ve probably noticed a wave of nostalgia for 2016. The fashion trends, music throwbacks, perfectly curated Instagram squares, dog-ear Snapchat filters, and the early days of TikTok-style short-form content have everyone reminiscing about what feels like a simpler time.
However, for those of us in the retirement business, nostalgia for 2016 is misplaced. So much has changed over the past decade, that retirement planning, while maybe not simpler, is much better. The changes from 2016 to 2026 have been significant.
Let’s look at where we were in 2016 and where we are in 2026.
One of the most noticeable changes in retirement planning is how much a person can contribute to their retirement plans.
In 2016, employees could contribute up to $18,000 to a 401(k) plan, with a catch-up contribution of $6,000 for those age 50 and older bringing the total to $24,000.
Fast forward to 2026, when the contribution limit has risen to $24,500, with a catch-up contribution of $8,000 for those age 50 and older increasing the total to $32,500. Even more notable is the introduction of “super catch-up” contributions for individuals ages 60–63, allowing additional contributions of up to $11,250.
These increases reflect both inflation and a growing recognition that Americans need to save more to fund longer retirements.
Contributions to Individual Retirement Accounts have also increased in the past decade.
While the increases may appear modest, they create meaningful opportunities for additional tax-advantaged savings, especially for those who contribute consistently.
Perhaps the biggest shift in retirement planning between 2016 and 2026 stems from legislative change, most notably the SECURE Act and the SECURE 2.0 Act.
These laws reshaped how employers design plans and how participants interact with their savings.
Key changes include:
Emergency Savings Accounts
401(k) plans can now include emergency savings accounts. Participants may withdraw up to $1,000 annually for qualified emergencies without early withdrawal penalties.
Roth Catch-Up Requirements
Beginning in 2026, catch-up contributions for employees earning $150,000 or more (indexed) must be made on a Roth (after-tax) basis. While this change reduces current-year tax deductions for catch-up contributions, it results in tax-free retirement income.
Expanded Access & Automatic Features
Automatic enrollment and escalation provisions have become more common, helping increase participation and savings rates across the workforce.
Beyond employee deferrals, total plan contribution limits have also climbed.
This expanded ceiling creates powerful planning opportunities for business owners and high earners looking to accelerate retirement savings.
Social Security retirement age has also changed.
In 2016, individuals born in 1954 reached full retirement age (FRA) at 66. By November 2026, FRA reaches 67 for those born in 1960 or later, completing a 42-year phase-in.
This shift underscores a broader reality: Americans are living longer, and retirement income must last longer as well.
Additionally, individuals who take Social Security before full retirement age and still work will be able to earn more in 2026 before their benefits are reduced:
New in 2026 is an enhanced tax deduction for those age 65 and over. The amount of the deduction is:
This enhanced deduction will increase seniors’ after-tax income in retirement.
While increased contribution limits and improved plan features have made saving for retirement easier, there are still many challenges to a secure retirement.
Healthcare costs continue to rise, and for those on Medicare, the cost of living adjustment for Social Security, 2.8% in 2026, may not be enough to offset the increasing Medicare Part B premiums. In addition, many Social Security recipients are rightly concerned that, at some point in the future, there will not be enough money to pay their full benefits. As a result, retirement planning today is much more challenging and requires a more proactive, savings-focused strategy than it did a decade ago.
Looking back, retirement planning in 2016 was simpler, but also more limited.
Today’s landscape offers:
With more tools comes more complexity, and more opportunity for strategic planning.
It’s fun to reminisce about 2016: the outfits, the playlists, the social media trends, and yes, even the photo filters. But when it comes to retirement planning, there is no room for looking bac to 2016. The changes over the last decade are anything but nostalgic; they are transformative.
Higher savings limits, legislative changes, and evolving economic realities mean that planning for retirement in 2026 requires a different lens than it did ten years ago. The strategies that worked then may not be enough now.
As the retirement landscape continues to evolve, staying informed, and working with experienced professionals can make all the difference in building a future that’s financially secure, no matter what trends come and go.
At RMC, retirement plan design isn’t built on outdated assumptions, it’s built around today’s regulations, tax strategies, and workforce realities.
With the changes introduced by SECURE 2.0 and evolving contribution limits, employers have more opportunities than ever to optimize their retirement plans. Our team works closely with business owners to evaluate and implement tax-advantaged strategies, including defined benefit plans, cash balance plans, and enhanced 401(k) plan designs that align with both company goals and long-term wealth objectives.
We help employers:
Retirement planning in 2026 requires proactive strategy, not reactive adjustments. By staying ahead of regulatory changes and market shifts, RMC helps ensure your retirement plan remains competitive, compliant, and positioned for long-term success.
Ready to evaluate your retirement plan strategy? Call us at 239-298-8210 or schedule a meeting with our retirement team to start building a smarter plan for 2026 and beyond.