5 Best Money Habits for Boomers To Carry Into 2026

The average retirement age is 62, as per MassMutual’s 2024 Retirement Happiness Study. This means that most baby boomers (born 1946 to 1964) are either already retired or are about to be.

Retirement comes with quite a few changes, especially related to personal finances. This means for boomers in 2026, certain money habits should probably change, while others should stay the same.

GOBankingRates spoke with several financial experts about which money habits boomers should keep in 2026. Here’s what they said.

Also see five wealth-building habits to start in 2026 — even if no one ever taught you about money.

A new year is a good time to check in with your finances, starting with your household budget.

“You know your savings/tax/personal budget rate, and now you can anticipate how your salary may grow for the new year,” said Marc Fowler, QKS, AIF, director of retirement education at Human Interest.

If you’ve retired, reevaluate your retirement income to make sure it’s on track. You might want to run the numbers with inflation in mind. After all, the amount needed to live comfortably in 2025 might not be the same in 2026.

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According to Cara Macksoud, a financial behavior specialist and CEO of Money Habitudes, there are two types of boomers: those who are “obedient savers” and those who aren’t.

The former are those whose money habits were heavily influenced by their Depression-era parents and have lived with the fear that Social Security alone wouldn’t be enough to live on in retirement. These are the boomers who contributed to their retirement plans and pensions, and who benefit from significant economic growth.

Macksoud said many of these boomers experience the “pain of paying.”

“Spending feels difficult because those account balances represent far more than money. They are a testament to discipline, responsibility, and having done everything right,” she said. “For this group, the opportunity now is not frivolous spending but meaningful spending. Time has become more precious than money, and for many, time will run out before their savings do.”

Boomers who have already been spending meaningfully can — and should — continue to do so. But those who’ve been afraid of using their hard-earned money might want to loosen up a little and invest in those meaningful experiences they’ve been putting off.

The average person age 65 and up spends $61,432 annually, according to Federal Reserve data. Whether that amount changes or stays the same, what matters is being aware and engaged.

“Priorities can shift quickly at this stage of life, and staying engaged helps prevent small issues from becoming stressful ones,” said Linda Grizely, CFP and financial wellness speaker. “Keeping a clear view of cash flow, understanding how much is available to spend and being willing to adjust when costs rise, or circumstances change are key. Fixed income doesn’t mean fixed decisions.”

The youngest boomers are still only in their early 60s, while the oldest ones are approaching 80. So the best money habits really depend on where they fall in terms of age.

Older boomers should stay focused on their required minimum distributions (RMDs). The IRS typically mandates RMDs to be taken once you turn 73. If you don’t, any amount not taken may be subject to a 25% maximum excise tax. Those who’ve already been taking their RMDs should continue to do so.

Younger boomers who don’t have to take RMDs should at least be aware of them. Chad Gammon, CFP, RICP, EA and owner at Custom Fit Financial, also suggested considering Roth conversions and a retirement tax strategy.

This is more relevant to boomers who are still working, but it’s a wise move for anyone wanting to retire with the maximum amount possible in those retirement accounts.

As per the IRS, anyone aged 50 and up can contribute an extra $1,100 to their IRA or an extra $8,000 to their 401(k) plan in 2026. But new legislature allows for an even larger contribution for those who are older.

“Thanks to provisions from the SECURE Act 2.0, an exciting change took effect in 2025 and will continue into 2026,” Fowler said. “Individuals aged 60 to 63 (but not older than 64) in calendar year 2026 can make a ‘super catch-up contribution’ of up to $11,250.”

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