How to fulfill goals to build savings, trim spending and more
By Aly J. Yale, AARP / Published January 06, 2026
While many people focus on making healthy New Year’s resolutions like losing weight or exercising more, older adults can also benefit from accomplishing important financial goals this year.
According to Fidelity Investments’ latest New Year’s Financial Resolutions Study, 62 percent of Gen Xers and half of boomers say they’re considering a financial resolution for 2026.
“Not only do you accomplish financial progress by setting goals, but it also [has] a positive psychological effect that can keep us happier later in life,” says Chace Cooper, director of business development at Double E Life Insurance and Financial Solutions in Mount Pleasant, South Carolina. “It’s like building your to-do list at the beginning of the day. It feels darn good to cross it off at the end.”
Here are seven money resolutions to set — and keep — in 2026.
1. Bulk up your emergency fund
Many Americans age 50-plus aren’t financially prepared for a rainy day. According to a 2025 Bankrate survey, 24 percent of Gen Xers and 16 percent of boomers have no emergency savings. Cooper suggests setting aside enough cash in an emergency fund to cover at least three to six months of living expenses.
If you’re not there yet, commit to squirreling away a certain amount of money each month until you reach your target, he says. “This is increasingly important if you are still counting on your earned income and need a pool of money that will cover you in the event you cannot work for an extended period of time.”
Be strategic about where you park the money. “Most people make the mistake of keeping their emergency funds in their checking account or a low-interest savings account,” Cooper says. “Look into a high-yield savings account or a money market fund in a brokerage account. These accounts are yielding around 4 percent, unlike the checking or low-interest savings accounts that yield as low as 0.10 percent.”
2. Slim down your spending
We’re all guilty of buying things we don’t need, but the new year is a good time to start changing that, step by step.
Small changes, such as taking public transportation more often or reducing how frequently you eat out, can add up to big savings. You can also make inexpensive upgrades around the house, such as installing energy-efficient LED light bulbs or a smart thermostat to lower your energy bills.
Now could also be a good time to consider downsizing if you’re nearing retirement or have recently retired. “Housing is often the biggest expense, so it makes sense to take a look and think about potential changes,” says Bobbi Rebell, a certified financial planner and consumer finance educator at CardRates, a credit card reviews website. “That could mean downsizing or moving into a new, lower-cost community.”
Consider factors like “lower taxes in a community that is 55-plus and does not have an expensive school system to support,” she says. “Think about amenities that are included and could save you money where you were spending money before, like fitness facilities and activities.”
3. Take advantage of retirement plan ‘catch-up’ contributions
If your nest egg isn’t quite where you want it to be, make 2026 the year to prioritize catch-up contributions, suggests Matthew Argyle, a certified financial planner at Encore Retirement Planning in South Jordan, Utah.
The IRS sets annual caps on contributions to retirement accounts, but the limits are higher for taxpayers age 50 and older. These catch-up contributions are “a chance to add more to retirement accounts just as your earnings and wisdom peak,” Argyle says. “For many, those last 10 years of saving make a bigger difference than the first 30.”
Catch-up contribution limits are adjusted annually for inflation. In 2026, the standard cap for 401(k) savers under age 50 is $24,500, but most older workers can add as much as $8,000 more (up from $7,500 in 2024), for a maximum contribution of $32,500. Savers ages 60 through 63 have a higher catch-up cap — they can stash an extra $11,250 in a workplace plan, for a maximum contribution of $35,750.
For both traditional and Roth IRAs, savers can contribute up to $7,500 for 2026, up from $7,000 in 2025. Those age 50 and older can put in an extra $1,100, for a max contribution of $8,600.
4. Audit your insurance policies
Your insurance needs can change as you age. Often, it makes sense to drop certain policies or take out new types of coverage as risks arise. “Insurance should evolve with your life,” Argyle says.
For example, more than half of adults reaching age 65 today will require long-term care at some point, according to the federal Department of Health and Human Services. A long-term care insurance policy can help cover the costs of home health services or care in a nursing home or assisted living facility.
“There is no such thing as preparing too early when it comes to long-term care,” Cooper says. “The costs are unimaginable and typically involve individuals having to liquidate a majority of their investments or potentially selling their home to afford the care.”
While you’re assessing your insurance needs, double-check your life insurance coverage, too. If you don’t have dependents anymore, you may be able to save money by reducing your plan’s death benefit or canceling the policy entirely.
“If your children are independent and your debts are gone, you probably don’t need life insurance,” Argyle says. “But if a spouse depends on income that would vanish at your death, keeping coverage in place can still serve as a safety net.”
5. Shred debt and boost your credit score
If you’re carrying a credit card balance, personal loan or other high-interest debt, paying it off should be a top priority this year, says D’Andre Clayton, cofounder of Clayton Financial Solutions in Greensboro, North Carolina.
Not only are debts reducing what you can stash away for retirement, but paying them down can also improve your credit score, allowing you to qualify for better interest rates on mortgages and auto loans.
“Insurance carriers, whether it be property, casualty, life or car insurance, they all look at your credit to see if you are a good steward,” Clayton says. “And oftentimes, your interest rates are changed based on that factor.”
Many financial advisers recommend the “avalanche” method, where you prioritize paying off the debt with the highest interest rate first while making the minimum payments on your other debts. Once the highest-rate debt is paid off, you tackle the one with the next-highest rate, and so on, until all your balances are paid off. This approach will help you save the most money in interest.
Another way to lift your credit rating is to check your credit reports and dispute any errors. In a 2024 survey by Consumer Reports and WorkMoney, a nonprofit that works to help people save, 44 percent of respondents who checked their credit reports spotted at least one mistake.
Reports are available for free on a weekly basis from the three major credit bureaus — Equifax, Experian and TransUnion — at AnnualCreditReport.com. (Don’t be fooled by the website name: The credit agencies changed their policies during the COVID-19 pandemic and never reverted to free annual reports.)
6. Launch a side hustle
Whether you’re still working or have retired, generating extra income can pad your savings and support your lifestyle in the future. Yet only a quarter of Gen Xers and boomers have a side hustle, a 2025 Bankrate survey found.
Providing consulting or coaching services in the field you’ve spent your career in is one option to explore. Other side hustles well-suited for adults 50-plus include dog walking, pet sitting, online tutoring and mystery shopping.
“You can even go to ChatGPT, put in what you do for a living and your soft skills, and ask it, ‘What small businesses can I grow on the side?’ ” Clayton says.
7. Stop stalling on creating (or updating) your estate plan
If you don’t have an estate plan yet, you’re not alone. Only 24 percent of Americans have a will, according to the 2025 Wills and Estate Planning Study from Caring.com. But “setting an estate plan on how you will pass your assets to your heirs is one of the most important things you can do,” Cooper says.
To get started, compile a list of all your financial accounts and assets, and make sure they all have designated beneficiaries. “Creating beneficiary designations should be a bare minimum in your estate planning,” Cooper says.
He also recommends crafting a will and naming a durable power of attorney and a health care power of attorney. An estate lawyer can help you prepare these documents. You can find one in your state using legal directories such as FindLaw, Justia or Nolo.
Already have an estate plan? Get in the habit of checking the documents once a year to see if you need to make any updates.
Aly J. Yale is a freelance writer with extensive experience covering personal finance and real estate topics. Her work has been published by Newsweek, Money, Yahoo Finance, Fortune, Insider, US News and World Report, and Buyside from Wall Street Journal.
