The more money you’re able to save for retirement during your working years, the more comfortable your senior years might be. And it’s important to have income to supplement your Social Security benefits, since they’ll only replace a limited portion of your pre-retirement wages.
During the third quarter of 2025, the average IRA balance rose to $137,902, according to data from Fidelity. Meanwhile, the average 401(k) plan balance rose to $144,400.
But if you’re looking to boost your retirement savings in the new year, it’s important to go about things strategically. Here are a few steps you can take to set your savings up for success.
Many companies that offer 401(k) plans to employees also offer some type of matching contribution. It’s important to claim your workplace match in full in 2026 so you don’t end up leaving any free money on the table.
First, find out what that match entails. It may have changed from previous years. Next, find out if your employer imposes a vesting schedule. If it’s a strict one, and you’re planning to leave your job pretty soon, keeping that match may not be feasible.
But if your workplace match is both attainable and easy to snag (say, there’s no vesting schedule to worry about), do your best to increase your savings rate to claim it in full. You may have to rethink some of your spending in the new year to free up more money for your 401(k), or even consider a side job for extra income.
But remember, every free dollar you collect from your employer is a dollar you then get to invest. Keep doing that, and those matching dollars could boost your savings substantially over time.
If you’re getting a raise in 2026, it may be a cost-of-living raise to match inflation. Or, it may be a merit-based raise as a reward for a job well done.
Either way, saving your raise from the start is a great strategy for boosting your retirement savings. If you don’t get used to having the extra money in your paychecks, you shouldn’t miss it if it lands in your retirement account instead.
If you have a 401(k), you can simply tell your payroll department to boost your contribution rate by whatever your raise amounts to. If you have an IRA, see if you can set up recurring contributions that allow you to bank your raise automatically.
