2026 Financial Planning Resolutions: Setting Yourself Up for Success

As the calendar turns to a new year, something is energizing about the opportunity for a fresh start. While many people focus on fitness goals or lifestyle changes, the new year is also the perfect time to strengthen your financial foundation. 

For retirees and those approaching retirement, financial resolutions take on a distinctly different form than those of younger adults. You’re not building wealth from scratch, you’re optimizing, protecting, and strategically managing what you’ve spent decades accumulating. This year, let’s focus on achievable financial resolutions that will set you up for a secure and satisfying 2026.

Reviewing and Adjusting Your Retirement Withdrawal Strategy

The start of a new year is the ideal time to evaluate whether your retirement withdrawal strategy still serves you well. The traditional 4% rule, withdrawing 4% of your portfolio annually, remains a valuable starting point, but your personal circumstances matter more than any generic guideline. How did your portfolio perform in 2025? Have your spending needs changed? Are you withdrawing too conservatively and missing out on enjoying your retirement, or are you drawing down too aggressively and risking your long-term security?

Market performance has a significant impact on sustainable withdrawal rates. If 2025 was a strong year for your investments, you might have more flexibility. Conversely, if markets are challenging, you may need to tighten your belt temporarily to preserve the longevity of your portfolio. This is where annual reviews become crucial. They allow you to make minor course corrections rather than facing major problems down the road.

Tax-efficient withdrawal sequencing deserves special attention each year. The order in which you withdraw from taxable accounts, tax-deferred accounts like traditional IRAs, and tax-free accounts like Roth IRAs can significantly impact your tax bill and the longevity of your assets. 

For South Carolina residents, remember that the state offers generous retirement income tax benefits, including a deduction for retirement income that can reduce your tax burden. Virginia residents also benefit from the favorable treatment of retirement income. Optimizing your withdrawals to take advantage of these benefits requires thoughtful planning.

If you’re collecting Social Security, have you optimized your claiming strategy? If you haven’t yet claimed and are approaching full retirement age or beyond, it’s worth reviewing whether delaying benefits might make sense for your situation. And don’t forget about required minimum distributions (RMDs) if you’re 73 or older in 2026. These mandatory withdrawals from tax-deferred retirement accounts require careful planning to minimize taxes and avoid penalties. Starting your RMD planning in January gives you the whole year to execute a tax-efficient strategy.

Finally, consider how inflation and lifestyle changes have affected your needs. Are you spending more or less than anticipated? Have healthcare costs increased? Are you traveling more or less than you expected? Your withdrawal strategy should flex with your life, not remain rigid based on a decision you made years ago.

Estate Planning Updates and Reviews

Estate planning isn’t a “set it and forget it” task. It requires regular attention, and the new year provides a natural opportunity for review. Start with a simple but critical task: reviewing all your beneficiary designations. Check retirement accounts, life insurance policies, bank accounts, and investment accounts. Ensure that the people named are still the ones you want to inherit these assets. Life changes such as marriages, divorces, births, and deaths often necessitate beneficiary updates, yet this simple task is frequently overlooked.

When was the last time you read your will or reviewed your trust documents? If it has been more than three years, schedule a time with your estate planning attorney for a comprehensive review. Laws change, your family situation evolves, and your wishes may have shifted. Your healthcare directive and living will should also be current and reflect your values and preferences for end-of-life care. Ensure that your family is aware of the location of these documents and understands your wishes.

Power of attorney documents also deserve special attention. Both financial and healthcare powers of attorney should be reviewed to ensure the people you’ve designated are still appropriate and willing to serve. If your designated agents have moved out of state, experienced health issues of their own, or your relationship has changed, updates may be necessary.

For 2026, be aware of any tax law changes that might affect your estate planning. While the federal estate tax exemption remains high, Congress periodically considers changes to estate and gift tax laws. If you have significant assets or complex family situations, staying informed about potential legislative changes helps you plan proactively rather than reactively. Additionally, if you’ve experienced significant changes in your family situation like new grandchildren, adult children’s divorces, or health issues among family members your estate plan may need adjustments to reflect these new realities.

Insurance Coverage Optimization

January brings a fresh focus to insurance planning, especially since Medicare’s Annual Enrollment Period concluded in December. If you made changes to your Medicare coverage, now is the time to ensure you understand your new benefits, premiums, and any coverage gaps. Review your Medicare Supplement (Medigap) or Medicare Advantage plan performance from 2025. Did it meet your needs? Were your doctors in network? Were prescription drug costs manageable? These insights inform whether you should make changes during the next enrollment period.

In addition, long-term care insurance deserves an annual checkup. If you have a policy, review the coverage levels, elimination periods, and inflation protection. Have premiums increased significantly? Does the coverage still align with the cost of care in Charleston, Salem, or wherever you plan to age? If you don’t have long-term care insurance, consider whether it makes sense for your situation, as premiums increase with age.

Life insurance needs often shift during retirement. If your children are financially independent and you have sufficient assets to support your spouse, you may not need the significant death benefit you once carried. Conversely, if you have estate tax concerns or want to leave a specific legacy, permanent life insurance might play a strategic role. Review your policies to ensure they still serve your goals.

Don’t overlook property and casualty insurance. Review your homeowners or condo insurance annually to ensure your coverage keeps pace with property values. This is especially important in growing areas like Charleston, where real estate values have climbed steadily. Auto insurance should reflect any changes in your driving habits. Many retirees drive less than they did during their working years, which might qualify them for reduced premiums.

Consider whether an umbrella liability policy makes sense. These policies provide additional liability protection beyond your home and auto policies and are relatively inexpensive for the coverage they provide. For retirees with accumulated assets, umbrella coverage offers valuable peace of mind.

Investment Portfolio Rebalancing and Goal Setting

Your investment portfolio also needs attention as the new year begins. If stocks performed well, you might now be overweight in equities relative to your plan. If bonds outperformed, you might be underweight in growth assets. Annual rebalancing brings your portfolio back to its intended mix and enforces the discipline of selling high and buying low. Be sure to talk to your financial advisor before making any changes to your portfolio.

As you age, your risk tolerance naturally evolves. The aggressive growth portfolio that made sense at 55 might feel too volatile at 70. Review whether your current allocation still feels appropriate for your stage of retirement, your goals, and your ability to weather market downturns. The balance between income and growth focus often shifts as you move deeper into retirement. Early retirees might emphasize growth, while those in their late 70s or 80s typically prioritize income and capital preservation.

January is also an excellent time for reviewing tax-loss harvesting. Did you have investment losses in 2025 that you captured to offset gains? Are there opportunities early in 2026 to strategically realize losses that can reduce your tax bill? This strategy is most effective when implemented systematically throughout the year; however, planning for it in January sets you up for success.

Don’t forget to verify that beneficiary designations on your investment accounts match your estate planning wishes. These designations supersede what’s in your will, so accuracy is crucial. If you work with a financial advisor, schedule your annual portfolio review early in the year. This ensures you’re starting 2026 on the right foot and allows time to implement any recommended changes throughout the year.

Health and Wellness Financial Planning

Financial planning for health and wellness goes beyond insurance coverage. If you’re still working or have access to a Health Savings Account (HSA), consider maximizing your contributions for 2026. HSAs offer triple tax benefits—deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses—making them one of the most powerful tools for retirement planning. Those 55 and older can contribute an additional catch-up amount.

Long-term care costs deserve proactive planning, whether or not you have insurance. Research the cost of home care, assisted living, and nursing care in your area. In Charleston, long-term care costs differ from those in Salem, and understanding local costs helps you plan realistically. Consider setting aside dedicated funds or identifying which assets you’d use to cover these expenses if needed.

Invest in preventive care as part of your financial plan. Annual checkups, recommended screenings, dental care, and vision care often prevent more expensive problems down the road. Many Medicare beneficiaries don’t take full advantage of their preventive care benefits, leaving money and health on the table.

Budget for fitness and wellness activities that promote your health and well-being. Whether it’s a gym membership, yoga classes, or outdoor recreation equipment, these expenses are investments in your long-term well-being. Maintaining good health reduces healthcare costs and enhances your overall quality of life throughout retirement. 

Finally, plan for healthcare inflation. Medical costs typically increase faster than general inflation, so build a cushion into your budget for rising healthcare expenses.

Legacy and Charitable Giving Goals

As you set financial resolutions for 2026, consider your legacy and charitable giving goals. If philanthropy matters to you, develop an annual charitable giving strategy. Making giving part of your plan, rather than reacting to solicitations, ensures your donations align with your values and budget. For those 70½ and older, qualified charitable distributions (QCDs) from IRAs can satisfy RMD requirements while supporting causes you care about—and they reduce your taxable income.

Think about involving your family in financial education. Many retirees want to help adult children and grandchildren develop financial literacy, but aren’t sure how to start. Consider making financial education a family activity in 2026, perhaps sharing lessons you’ve learned, discussing your values around money, or helping grandchildren open their first investment accounts.

If helping fund grandchildren’s education is essential to you, review 529 college savings plans and contribution strategies. These plans offer tax-advantaged growth and can be powerful legacy tools. Beyond financial giving, consider how you want to be involved in your community. Many retirees find deep satisfaction in volunteer work, mentoring, or serving on nonprofit boards. These contributions of time and expertise create lasting impact and often prove more valuable than financial donations alone.

Making 2026 Your Best Financial Year Yet

The key to successful financial resolutions isn’t trying to overhaul everything at once, it’s choosing a few meaningful goals and sticking to them. Start with one or two priorities from this list, accomplish them, and then tackle the following items. Small, consistent progress beats ambitious plans that fizzle by February.

Remember that you don’t have to navigate these resolutions alone. Complex financial goals, especially those involving tax strategy, investment management, or estate planning benefit from professional guidance. A financial advisor who understands retirement planning can help you prioritize goals, avoid costly mistakes, and stay accountable throughout the year. Regular check-ins with your advisor ensure you’re making progress and allow for adjustments as circumstances change.

Ready to make 2026 your best financial year yet? Contact Partners in Financial Planning at our Charleston or Salem office to schedule your New Year’s financial planning review. We’ll help you set achievable goals, create an action plan, and provide the guidance and accountability you need to succeed. Here’s to a financially secure and satisfying 2026!