Retirement planning in 2026 looks different than it did just a few years ago. Contribution limits have increased, Social Security benefits have received a cost-of-living adjustment, Medicare costs continue to rise, and Kentucky has its own rules that can affect how retirement income is taxed.

At Consort Financial Partners, we help individuals, families, and business owners in Lexington and throughout Central Kentucky build retirement plans designed for clarity, flexibility, and long-term confidence.

Use this 2026 retirement planning checklist to review where you stand and identify the next steps that may strengthen your financial future.

1. Know the 2026 Retirement Contribution Limits

One of the most practical ways to improve your retirement outlook is to make sure you are taking full advantage of the savings opportunities available to you.

For 2026, the IRS increased the employee contribution limit for 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan to $24,500. The IRA contribution limit increased to $7,500, with an additional $1,100 catch-up contribution for those age 50 and older. For workplace plans, the standard catch-up contribution for those age 50 and older is $8,000, while eligible participants ages 60 through 63 may qualify for a higher catch-up limit of $11,250, if their plan allows it.

Health Savings Accounts can also play an important role in retirement planning. For 2026, HSA contribution limits are $4,400 for self-only coverage and $8,750 for family coverage. Individuals age 55 and older may be eligible for an additional $1,000 catch-up contribution.

Action step:

Review your payroll deductions and consider increasing your retirement plan contributions. Even a small increase can make a meaningful difference over time. If you are self-employed or own a business, consider whether a Solo 401(k), SEP IRA, or other retirement plan could help you save more efficiently.

2. Review Kentucky Public Retirement Benefits

Many Kentucky residents participate in public retirement systems, and those benefits should be reviewed as part of a complete retirement plan.

Kentucky teachers may participate in the Teachers’ Retirement System of the State of Kentucky, which provides a defined benefit, life insurance, and retiree health insurance. Retirement eligibility is based on factors such as age and years of service, and the service retirement annuity is designed as a lifetime benefit.

Other Kentucky public employees may be covered through the Kentucky Public Pensions Authority, which administers pension and health insurance benefits for state and local government employees, state police officers, and nonteaching staff of local school boards and regional universities. KPPA covers CERS, KERS, and SPRS.

Action step:

Log in to your retirement system account and review your projected benefit, years of service, retirement eligibility date, survivor benefit options, and healthcare benefits. If you are considering part-time work after retirement, review reemployment rules before making any decisions.

3. Factor in Social Security and the 2026 COLA

Social Security remains a major source of income for many retirees, but the timing of when you claim benefits can have a lasting impact.

For 2026, Social Security beneficiaries received a 2.8% cost-of-living adjustment. The Social Security Administration estimated the average retired worker benefit would rise from $2,015 before the COLA to $2,071 after the COLA.

Kentucky is also relatively favorable when it comes to Social Security taxation. Kentucky Schedule M allows taxpayers to subtract taxable Social Security and Social Security-equivalent Railroad Retirement Board benefits that were included on the federal return, and the Kentucky Department of Revenue gives an example stating that none of a taxpayer’s Social Security income is taxable for Kentucky purposes.

Action step:

Review your Social Security claiming options before filing. Claiming early may provide income sooner, but delaying benefits can increase your monthly amount. A retirement income plan should coordinate Social Security with pensions, retirement account withdrawals, taxes, and healthcare expenses.

4. Plan for Healthcare and Long-Term Care Costs

Healthcare can become one of the largest expenses in retirement, especially as Medicare premiums, deductibles, prescriptions, and long-term care needs evolve over time.
For 2026, the standard Medicare Part B premium is $202.90 per month, and the annual Part B deductible is $283. The Medicare Part A inpatient hospital deductible is $1,736 for 2026.

Long-term care is another important planning consideration. Care may be needed at home, in an assisted living community, or in a skilled nursing facility. Without advance planning, those costs can place significant pressure on retirement savings.

Action step: Review your Medicare coverage, prescription drug plan, and out-of-pocket exposure each year. Consider whether long-term care insurance, hybrid life insurance with long-term care benefits, or dedicated savings may fit your overall plan.

5. Optimize Your Kentucky Tax Strategy

Taxes do not disappear in retirement. They simply change.

Kentucky’s 2026 individual income tax rate is 3.5% of taxable income, and the 2026 Kentucky standard deduction is $3,360.

Kentucky also allows a retirement income exclusion. Kentucky Schedule M and Schedule P reference a pension income exclusion of up to $31,110 per taxpayer for qualifying retirement income. This may include pensions, annuities, IRAs, 401(k)s, and similar retirement plans, depending on the situation.

That means the way you draw income in retirement matters. A thoughtful strategy may include coordinating taxable brokerage accounts, traditional IRAs, Roth IRAs, pensions, and Social Security to help manage your tax bracket over time.

Action step:

Review your expected retirement income sources and identify which ones are taxable, tax-deferred, or tax-free. Consider whether Roth conversions, strategic withdrawals, or tax-efficient investment placement could help reduce future tax pressure.

6. Plan Ahead for Required Minimum Distributions

Required minimum distributions, or RMDs, can create a surprise tax bill if they are not planned for in advance.

The IRS generally requires withdrawals from traditional IRAs, SIMPLE IRAs, SEP IRAs, and many workplace retirement plans beginning at age 73. Those withdrawals are typically included in taxable income, except for amounts that were already taxed or can be received tax-free. Roth IRAs and designated Roth accounts in 401(k) and 403(b) plans generally do not require withdrawals during the original account owner’s lifetime.

Action step:

Estimate your future RMDs before they begin. If your projected RMDs are likely to push you into a higher tax bracket, consider whether earlier withdrawals or Roth conversions could make sense during lower-income retirement years.

7. Consider Qualified Charitable Distributions

For retirees who give to charity, a qualified charitable distribution can be a valuable planning tool.

A QCD is a nontaxable distribution made directly from an IRA trustee to an eligible charitable organization. Taxpayers must generally be at least 70½ on the date of the distribution, and a QCD can count toward a required minimum distribution.
This can be especially helpful for retirees who do not itemize deductions but still want a tax-efficient way to support causes they care about.

Action step:

If charitable giving is part of your retirement plan, ask whether giving directly from an IRA could be more tax-efficient than writing checks from a bank account.

8. Update Your Estate Plan and Beneficiary Designations

Retirement planning is not only about income. It is also about making sure your assets transfer according to your wishes.

For 2026, the federal basic estate tax exclusion amount is $15 million. Kentucky does not have a separate estate tax, but it does have an inheritance tax that depends on the beneficiary’s relationship to the deceased person. The Kentucky Department of Revenue notes that closer relatives generally receive greater exemptions and lower tax rates, while Class B and Class C beneficiaries may be subject to tax.

Beneficiary designations are also critical. Retirement accounts, life insurance, annuities, bank accounts, and transfer-on-death registrations may pass outside of a will, so outdated beneficiary forms can create unintended results.

Action step:

Review your will, trust, powers of attorney, healthcare directives, and beneficiary designations. Pay close attention if you intend to leave assets to nieces, nephews, cousins, friends, charities, or others who may be treated differently under Kentucky inheritance tax rules.

9. Do Not Overlook Property Tax Planning

Housing costs are a major part of retirement planning, especially for homeowners in Lexington and Central Kentucky.

Kentucky’s homestead exemption can reduce property taxes for eligible homeowners. For the 2025 and 2026 tax periods, the Kentucky Department of Revenue set the maximum homestead exemption at $49,100. To qualify, a person must generally be at least 65 years old during the tax period or classified as totally disabled, and the property must be owned, occupied, and maintained as the taxpayer’s personal residence on the January 1 assessment date.

Action step:

If you are 65 or older, or if you qualify based on disability, confirm whether you have applied for the Kentucky homestead exemption through your local Property Valuation Administrator’s office.

10. Assess Your Overall Retirement Readiness

A strong retirement plan should bring all the pieces together.

Ask yourself:

• Do I know how much monthly income I will need in retirement?
• Have I estimated income from Social Security, pensions, investments, and savings?
• Is my investment strategy aligned with my risk tolerance and time horizon?
• Have I planned for inflation, healthcare costs, and market volatility?
• Do I understand how my withdrawals will be taxed?
• Would my surviving spouse or family be financially secure if something happened to me?
• Have I reviewed my estate plan and beneficiary designations recently?

Action step:

Build or update a retirement income projection. Include everyday living expenses, healthcare, travel, taxes, insurance, charitable giving, and housing costs in Lexington or wherever you plan to retire.

11. Schedule a Professional Retirement Review

Online calculators can be useful, but retirement planning is personal. Your plan should reflect your income sources, family situation, tax picture, risk tolerance, healthcare needs, and long-term goals.

A professional review can help coordinate:

• 401(k), 403(b), IRA, and Roth IRA accounts
• Pension benefits
• Social Security claiming decisions
• Tax planning
• Medicare and healthcare costs
• Investment strategy
• RMD planning
• Charitable giving
• Estate and beneficiary planning

At Consort Financial Partners, we help clients organize these moving pieces into a retirement strategy designed around the life they want to live.

Final Thoughts: Take One Step Today

Retirement planning is not a one-time event. It is an ongoing process that should evolve as your life, goals, tax laws, healthcare needs, and market conditions change.
The most important thing is to keep moving forward.

Increase one contribution. Review one beneficiary form. Estimate one retirement income source. Schedule one planning conversation. Over time, those steps can add up to greater confidence and flexibility.

If you are preparing for retirement or already retired, Consort Financial Partners in Lexington, KY can help you create or refine a retirement plan built around your goals, your family, and your future.

This material is for informational purposes only and should not be considered tax, legal, or investment advice. Please consult the appropriate professional regarding your specific situation.

Ready to take the next step?

At Consort Financial Partners in Lexington, Kentucky, we help individuals, families, and business owners create personalized financial strategies designed around their goals. Whether you are planning for retirement, managing investments, or looking for a more coordinated financial plan, our team is here to help.