Top 3 Retirement Savings Pitfalls 50-Somethings Must Avoid in 2026

As many in their 50s approach retirement, small missteps can significantly reduce income and flexibility in retirement. Here are three mistakes to address now so you enter 2026 better prepared.

1) Skipping catch-up contributions and delaying savings. At 50+, catch-up contribution rules let you add extra to 401(k)s and IRAs. Forgoing these boosts — or waiting to restart regular savings after a job change — sacrifices valuable tax-advantaged growth and compounds the gap between your savings goal and reality. Prioritize maxing traditional accounts and consider Roth conversions selectively to lock in tax diversification.

2) Staying overconcentrated in risky assets or a single employer stock. Many late-career investors rely on a handful of winners or employer equity. That concentration can amplify market shocks just as you’re about to draw down funds. Reassess asset allocation, rebalance toward a mix of equities, bonds, and cash equivalents aligned with your time horizon, and consider staged de-risking rather than an abrupt shift that could harm long-term growth.

3) Neglecting tax, Social Security and income sequencing strategies. Ignoring when to claim Social Security, how to schedule RMDs, or whether to use Roth conversions can trigger preventable taxes and Medicare premium spikes. Coordinate taxable, tax-deferred and tax-free accounts to create a flexible withdrawal plan that minimizes taxes over the long run. Also plan for healthcare costs and long-term care insurance needs—unexpected medical expenses are a common retirement shock.

Action steps: run scenarios with a financial planner or trusted retirement calculator, set a concrete catch-up schedule, diversify concentrated positions over time, and map taxable impact of potential withdrawals and conversions. Small, timely changes in your 50s can widen income options and reduce stress in retirement. Source: Yahoo Finance.