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.
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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.
1. Claim your full 401(k) match
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.
2. Save your raise from the start
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.
3. Make sure your portfolio is set up for growth
Investing your hard-earned savings in the stock market can be nerve-wracking. After all, the stock market has long been subject to wild swings, and even a diversified portfolio isn't always fully protected from losses if the market takes a dive.
But one thing you should know is that while the stock market does lose value from time to time, in the long run, it tends to make investors money. So if you're 10, 20, or 30 years away from retirement, don't just rely on your retirement plan contributions to fuel your savings' growth. Instead, invest your money strategically so your assets do more of the heavy lifting.
It's a good idea to put some of your money into growth stocks when retirement is many years away. However, income-generating assets like dividend stocks and real estate investment trusts (REITs) can provide a nice balance.
If you're saving in a 401(k), you typically can't choose individual stocks to invest in. In that case, your best bet may be to look at different index funds that come with low fees and align with your growth and income strategy.
The more money you're able to save for retirement in 2026, the better a foundation you can lay. Make these moves to give your savings a solid boost so you can close out 2026 feeling proud of your efforts.
