3 Retirement Savings Mistakes Every 50-Something Needs to Avoid in 2026

Core Insights - The 50s are a crucial period for retirement savings, as individuals may be nearing the end of their careers and planning for retirement activities [1] Retirement Savings Mistakes - It is essential to utilize the final decade in the workforce to ensure a strong start to retirement [2] Mistake 1: Ignoring Catch-Up Contributions - Individuals aged 50 and over can make catch-up contributions to their IRA or 401(k), which can significantly enhance retirement savings. In 2026, the catch-up contribution for IRA savers will be $1,100, raising the total contribution limit to $8,600. For 401(k) plans, the catch-up contribution can reach $8,000, with a total allowable contribution of $32,500. Special provisions allow those aged 60 to 63 to contribute up to $11,250, with a maximum of $35,750 for 401(k) contributions [4][5] - High earners (over $150,000 in 2025) will only be able to make catch-up contributions to a Roth 401(k), which eliminates the upfront tax break but allows for tax-free gains and withdrawals. Employers must offer a Roth option for this to be viable [6] Mistake 2: Overly Aggressive Stock Selling - As retirement approaches, it is prudent to reduce risk in investment portfolios. However, individuals should avoid excessively selling stocks in their 50s, as they may still have several years before retirement. A balanced approach is recommended, where individuals assess their stock investments and consider replacing high-growth stocks with more stable dividend stocks [7][9]