There's a reason workers today are strongly encouraged to save well for retirement. Not only is it hard to live on Social Security alone in general, but it may be an even more difficult thing in the future if benefits end up getting cut broadly.
Social Security is facing a massive funding shortfall. And lawmakers only have a few years to come up with a solution to prevent benefit cuts. So it's crucial to save for retirement in case you don't end up getting your monthly checks in full.
Image source: Getty Images.
If you have access to a 401(k) plan through your job, the good news is that contribution limits are rising for 2026. But whether you'll be able to max out is a different story.
What the new 2026 contribution limits look like for 401(k)s
Currently, 401(k) plans max out at $23,500 for savers under age 50 and $31,000 for those 50 and over. In 2026, these limits are rising. In the new year, savers under age 50 will be able to contribute up to $24,500 to their 401(k)s, and the catch-up contribution for savers 50 and over is increasing to $8,000. So people 50 and over will get to contribute up to $32,500 to a 401(k) in 2026.
Plus, savers between ages 60 and 63 will actually get to contribute up to $35,750 thanks to a special super 401(k) catch-up contribution that was introduced this year.
You may not be able to max out your 401(k)
It's one thing to max out an IRA, since those accounts come with much lower contribution limits than 401(k)s. But unless you earn a very high wage, maxing out a 401(k) will probably be difficult.
In fact, according to Vanguard's most recent How America Saves report, only 14% of 401(k) participants maxed out their contributions in 2024. And with the limits rising, that percentage could shrink in the coming year -- especially as increasing living costs continue to drain even higher earners' paychecks.
While maxing out a 401(k) is a great way to set yourself up for a secure retirement, if it's not in the cards because you don't earn enough or your expenses are very high right now, don't beat yourself up. Instead, set a reasonable goal for yourself for 2026.
One good benchmark to aim for is saving enough to claim your full employer match. Not only is that free money for your retirement, but you can invest it and try to grow into a larger sum over time.
Another good goal is to try to save a larger amount or higher percentage of your income in 2026 than you did in 2025. One way to pull that off could be to send your upcoming raise into your 401(k) directly. If you never see larger paychecks, you won't miss the extra money you're saving.
If there's no raise coming your way, the gig economy could make it possible to create your own. Working even a few hours a week on the side could be your ticket to boosting your retirement plan contributions in a meaningful way.
And remember, the more income you pay taxes on (at least up to a point), the more Social Security you might be eligible for in retirement. And while it's not a good idea to try to live on those benefits alone, it's a very good thing to get as much money out of the program as possible.
Maxing out isn't your only path to success
All told, most workers probably will not max out their 401(k)s in 2026. But don't sweat it if you fall into that category.
The key is to save for retirement consistently and do your best to ramp up as circumstances allow. Over time, it could be your ticket to building a large-enough nest egg that makes your retirement stress-free.
