Three New Year’s Retirement Resolutions for Your Plan

January is all about fresh starts, when gym memberships spike, meal plans trend and personal goals take center stage. But what about your financial health? Just like physical wellness, the New Year is a great time to refocus on your long-term financial goals.

To start 2026 right, consider setting some low-stress, high-impact New Year’s Resolutions for your retirement plan. Here are three powerful goals to get you started.

Retirement resolution #1: Increase your contribution rate by 1%

A small increase—just 1%—can have a surprisingly big impact on your future savings. Thanks to the power of compounding, even modest changes today may snowball into tens of thousands of dollars over time.

• Why it matters: If you earn about $60,000 per year, increasing your contribution by just 1% could help potentially grow your retirement account to over $47,000 in 10 years, assuming a 10% average annual return. That’s the equivalent of saving $12 more per week.
• How to do it: Log into your retirement account and increase your contribution rate by 1%. If your plan offers auto-escalation, enable it so your contributions rise automatically each year.

Learn more: How to Maximize Your 401(k) Employer Match

Retirement resolution #2: Review your investment allocation

Your investment mix determines how hard your money works for you. Over time, market fluctuations and life changes can throw your allocation out of balance.

• Why it matters: Asset allocation is one of the biggest drivers of long-term portfolio performance. A portfolio that’s too conservative may not keep pace with inflation, while one that’s too aggressive could expose you to unnecessary risk.
• How to do it: Schedule a quarterly review of your retirement account. Check whether your current allocation aligns with your risk tolerance and time horizon. Many plans offer target-date funds or rebalancing tools to simplify this process.

Retirement resolution 3: Update your beneficiaries

Did you know that beneficiary designations on retirement accounts override your will? By ensuring your beneficiaries are up to date, you’ll enjoy the peace of mind that comes with knowing your final wishes will be honored.

• Why it matters: Life events—marriage, divorce, birth or death—can change who should inherit your assets. Failing to update beneficiaries can lead to legal disputes and unintended outcomes.
• How to do it: Log into your retirement plan portal and review your beneficiary list. Update it after any major life change and set an annual reminder to check it.

Bonus resolution: Learn more about your finances

Financial literacy is a powerful tool for building confidence and making informed decisions. This year, commit to learning something new about your retirement plan.

• Explore auto-escalation: Many plans offer automatic contribution increases—typically 1% per year—so you save more without thinking about it.
• Cut unnecessary spending: Redirect small expenses (like eating out or subscription services) toward your retirement contributions. Even $12–$15 a week can fund that 1% bump.
• Understand your plan tools: Use retirement calculators to see how today’s changes can affect future income.

Small steps, big impact

Taking control of your finances doesn’t require overwhelming changes. Start with one small step—boost contributions, review your allocation, update beneficiaries or learn something new. These incremental moves compound over time, helping you create a stronger retirement foundation which can reduce your financial stress. Your future self will thank you!

FAQ: Retirement planning questions

1. How much should I increase my retirement contributions each year?
Even a 1% increase can make a big difference over time. Many plans offer auto-escalation features to help you save more gradually without feeling the pinch.

2. Why is updating beneficiaries important?

Beneficiary designations override your will. If they’re outdated, your assets could go to unintended recipients. Review them annually or after major life events.

3. How can I learn more about retirement planning?

Work with a financial professional who can help you understand your options, optimize your plan, and create a strategy tailored to your goals. Check out our blog to learn more strategies, 3 Key Retirement Strategies Beyond Start Saving Young.

Disclosures

Representatives of Ameritas do not provide tax or legal advice. Please refer clients to their tax advisor or attorney regarding their specific situation.