Federal benefit rules don’t change all at once. They change in pieces — new contribution thresholds, revised timelines, updated elections — and those pieces add up. The new year brings enough moving parts that it’s a smart time for a 2026 retirement benefit review, even if retirement still feels far off.
This isn’t only for employees nearing the finish line. Early- and mid-career Feds who review their benefits now tend to avoid rushed decisions later, especially when family, income, or job changes enter the picture. At Serving Those Who Serve, we help our Feds sort through the details, focus on what actually applies, and make decisions that still work a few years down the road.
New Rules to Watch in 2026: What’s Changing
Several updates converge in 2026, and together they affect long-term planning in fundamental ways:
- SECURE Act 2.0 updates– Required minimum distribution (RMD) ages increases, Roth catch-up contribution rules evolve, and the SECURE Act 2.0 beneficiary rules changes affect how inherited accounts work for non-spouse and trust beneficiaries.
- Social Security adjustments– Cost-of-living estimates hover around 2.8%, full retirement age now applies to those born in 1960 or later, and taxable wage caps and income thresholds continue to adjust.
- Other federal benefit shifts– Annual changes to insurance premiums and contribution limits, along with planning considerations tied to the Federal Employees Retirement System (FERS) annuity supplement and benefit coordination.
Each change looks modest on its own. Together, though, they influence taxes, cash flow timing, and long-term flexibility.
Key Areas to Revisit: Beneficiaries, Savings, and Insurance Elections
A benefits review works best when you focus on the decisions that actually create downstream problems. These three areas cause the most issues when they’re outdated or misaligned.
Beneficiaries. Check the names you have on file. Then check where they appear. For example, retirement accounts, insurance policies, and trusts often include different beneficiary information. Under the SECURE Act 2.0 beneficiary rules changes, some non-spouse beneficiaries face shorter payout periods. Old designations can lead to tax issues simply because no one revisits the paperwork.
Savings strategies. Contribution elections regularly stay in place longer than intended. With income changing over time, eligibility for catch-up contributions can shift the math. Roth and pre-tax decisions made earlier may no longer produce the same tax result once distributions begin. Higher required minimum distribution ages now delay distributions. However, taxes still apply once withdrawals begin.
Insurance elections. Coverage typically reflects circumstances at enrollment. However, family structure, health considerations, and premium costs evolve. Life insurance, long-term care elections, and other FED benefits frequently remain unchanged despite those shifts. In some cases, coverage no longer addresses current risks. In others, it exceeds what is necessary.
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Timing and Strategy: When to Act and How to Plan
Timing often matters more than intent. Benefit elections frequently stay in place because nothing forces a change. When the annual enrollment window closes, the choices made at that time control.
Contribution elections and beneficiary designations tend to stay untouched the longest. Years later, those forms dictate tax treatment and distribution timing. At that stage, revision may no longer be available. An earlier review keeps alternatives open. Open season allows changes without corrections, exceptions, or follow-up processing.
A full annual review may not be required in every case. Start with unresolved items. Identify elections that no longer reflect current income, family structure, estate planning, or tax exposure. Review those items in isolation. A CERTIFIED FINANCIAL PLANNER™ or benefits professional can evaluate consequences before elections become fixed.
Practical Steps to Perform Your 2026 Benefits Checkup
Start simple and stay focused:
- Assemble retirement statements, beneficiary designations, and insurance policies.
- Review savings rates, investment allocations, and coverage gaps.
- Use Social Security Administration (SSA) estimatorsand RMD calculators to frame decisions.
- Talk through your 2026 retirement benefit review with a trusted advisor.
If you want a guide who works with federal benefits every day, reach out to the Serving Those Who Serve team at [email protected].
A Small Review Now Beats a Big Fix Later
Benefits decisions often drift. By the time they matter, they may no longer match actual circumstances. Treat reviews as an annual or semi-annual habit, not a one-and-done task. A short checkup today protects years of progress tomorrow — and 2026 is the right time to start.
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
