By Scott Hamilton, CFP®
2026 is a great year for pre-retirees to take a fresh look at their financial goals and start planning for a retirement that truly feels fulfilling. By spotting common pitfalls and making a few smart adjustments, pre-retirees can rebound financially in 2026.
In this article, we walk through the typical mistakes pre-retirees make and share practical strategies to turn those challenges into wins for the new year.
Table of Contents
Common Financial Mistakes Pre-Retirees Make
First, let’s take a look at some of the common mistakes that pre-retirees make, often depleting their retirement savings.
Overspending
As individuals get closer to retirement, they often feel pressured to spend their hard-earned money on hobbies, vacations, or luxuries. This overspending can have a significant effect on their retirement savings and confidence.
Neglecting Retirement Savings
Ignoring retirement savings is just as harmful as overspending. Making consistent contributions to retirement accounts, such as 401(k)s or IRAs, is essential. Many pre-retirees rely on Social Security or part-time employment as a result of this neglect, which can result in a significant retirement income shortfall.
Investment Missteps
Investment mistakes can also endanger retirement plans. Frequently, I’ve witnessed pre-retirees making snap decisions based on rumors or market patterns, instead of professional investment advice. Additionally, pre-retirees’ portfolios can be exposed to unnecessary risk if it’s not diversified properly.
Procrastinating Financial Decisions
Lastly, if you delay crucial financial decisions like creating a budget, reviewing your insurance, or speaking with a financial advisor, there could be serious repercussions. Pre-retirees risk missing out on important opportunities to optimize their retirement goals if they put off these tasks.
Strategies to Rebound Financially in 2026
Now let’s discuss some strategies you can use to avoid common mistakes and pursue a comfortable retirement instead.
Conduct a New Year Financial Audit
The first strategy is to conduct a comprehensive financial audit. This should include reviewing your income, expenses, assets, and liabilities. By getting a clear picture of your current financial status, you can spot areas where you might be overspending or undersaving. As an added bonus, this type of analysis lets you properly allocate your resources and make well-informed decisions.
Optimize Retirement Contributions
To strengthen your retirement savings, optimize your contributions to retirement accounts, such as 401(k)s and IRAs. If you’re over age 50, you can contribute more than the standard amount allowed by the IRS. Additionally, employer matching programs can help you increase your savings even further. Another change made in the SECURE 2.0 Act allows for an even higher catch-up contribution for employees aged 60, 61, 62, and 63. Don’t forget about employer matching programs—they’re a great way to grow your savings faster.
Reassess Your Investment Portfolio
Another strategy to help you rebound financially in 2026, review your investment portfolio to make sure it fits your long-term financial goals and risk tolerance. To keep your portfolio’s asset allocation aligned with your goals, consider rebalancing. Additionally, evaluate how well your assets are performing and adjust as needed to optimize your returns.
Plan for Tax Efficiency
Too many pre-retirees don’t plan for tax efficiency; I consider it a huge mistake. When you utilize tax incentives like contributing to a health savings account (HSA) and other tax-saving strategies, you can shave a significant amount off of your taxable income. Consult with a tax advisor for guidance on optimizing your after-tax income.
Review and Update Estate Plans
The last strategy I want to mention for pre-retirees to avoid financial potholes is to verify that your estate plan is up to date and reflects your current wishes. To prevent any legal issues and facilitate a seamless asset transfer, review your will, trust, and beneficiary names. Speak with a professional financial advisor to discuss any necessary updates or modifications.
The Bottom Line
To recap, mistakes don’t necessarily define your financial future. What matters most is rebounding by taking appropriate actions to rectify past errors.
You can start the new year with confidence that 2026 can be your greatest financial year yet. As a pre-retiree, a smart move is to partner with a professional financial advisor who can create personalized strategies based on your particular situation.
Let Us Help You Rebound Financially in 2026
At Hamilton Financial Planning, LLC, we’ve been helping clients navigate financial challenges with experienced pre-retirement financial planning for over 20 years. Our focus is on supporting your needs today, tomorrow, and well into the future.
Schedule a complimentary get-acquainted meeting online or reach out to us at 512-261-0808 or scott@hamiltonfinancialplanning.com.
About Scott
Scott Hamilton is founder and chief financial officer at Hamilton Financial Planning, a wealth management firm that specializes in providing comprehensive financial planning for retirees. With over 20 years of experience in the financial industry, and having completed over 250 financial plans for retirees across all industries, but mostly the oil and gas industry, Scott is passionate about providing his clients with the tools and insight they need to achieve their financial goals. He has a Bachelor of Business Administration in finance from Texas State University and an MBA in international finance from Pepperdine University. Scott has also been happily married to his wife, Gayle, for over 25 years. To learn more about Scott, connect with him on LinkedIn.
