2026 retirement planning: 5 key strategies

5 retirement planning strategies for 2026

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From tax-law shifts to Social Security and ERISA changes, many retirement variables lie out of advisors' hands. But that doesn't deter financial advisors from working year after year to fine-tune the efficiency of their retirement planning strategies.

The need for better retirement planning is clear: Just 4 in 10 Americans are on track to maintain their lifestyle in retirement, according to Vanguard's latest Retirement Outlook report. And many retirees are feeling that shortfall firsthand.

Data from the Employee Benefit Research Institute (EBRI), a nonpartisan research organization, shows that while financial confidence among retirees has increased compared to the last couple of years, it still lags behind historic highs.

So where do advisors come in? In cases in which they can't alter the circumstances, such as lackluster Social Security COLA adjustments, the job is often about communication: listening, explaining and helping clients work through their concerns.

But in plenty of other situations, advisors can make meaningful, tangible improvements to a client's outlook — provided they have the information they need to act.

In 2025, Financial Planning highlighted many of those opportunities. Here are the strategies that rose to the top, each with the potential to gain even more traction in 2026.

New withdrawal strategies for 2026

Piggy Bank Sinking Inside Steel Bucket. Business and Financial Recession Concept.

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For decades, the bucket strategy has guided retirement withdrawals, segmenting assets into pools to shield retirees from short-term market swings. Yet many financial advisors find the approach cumbersome in practice, with rebalancing and market-timing decisions complicating its execution.

Now, alternative strategies are emerging, from streamlined single-bucket approaches to adaptive guardrails and income-floor methods, offering more flexibility and control over withdrawals.

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Forget retirement buckets. Advisors prefer these withdrawal strategies

A little-known tactic could ease RMD taxes

deferred tax word or concept represented by wooden letter tiles on a wooden table with glasses and a book

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Required minimum distributions present complex challenges for retirees and financial advisors, particularly when market conditions make selling assets costly.

Some advisors are exploring a little-known strategy that delays RMD tax withholdings until the end of a year, potentially simplifying payments and improving tax efficiency. The approach allows smaller periodic distributions throughout the year while covering taxes on a larger end-of-year distribution, offering flexibility during market volatility.

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Financial advisors are divided over this RMD tax strategy

Covered calls are making a comeback

Jeff Bilsky, senior portfolio manager at Chartwell Investment Partners, spoke about the use of covered calls as an investment hedge at the Investments & Wealth Institute's strategy forum in New York City on Nov. 17.

Elijah Nicholson-Messmer/Arizent

Soaring stock valuations are driving renewed interest in a once-niche strategy — covered calls. Unlike traditional hedges, covered calls allow investors to stay fully invested while generating income and cushioning portfolios against moderate market drops.

At this year's Investments & Wealth Institute forum, Jeff Bilsky highlighted how selling calls on owned shares can reduce volatility without severely limiting gains. While the approach has drawbacks — including capped upside and potential "whiplash" losses during sharp swings — investors are increasingly turning to covered calls to navigate uncertain markets.

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High valuations fuel demand for a once-niche hedging strategy

A tax-smart way for retirees to give

Sincere devotion to faith or donorship and charity concept

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Qualified charitable distributions (QCDs) are emerging from the shadows as a powerful tax-advantaged tool for retirees. By donating directly from a taxable IRA to charity, retirees over 70½ can satisfy required minimum distributions without increasing taxable income, potentially lowering tax burdens and preserving deductions.

Policy changes and nonprofit marketing efforts have fueled growing interest, though many retirees remain unaware of the strategy. Financial advisors now play a key role in educating clients and running the numbers to optimize giving.

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An overlooked charitable IRA tool steps into the spotlight

When fixed withdrawals fall short

Miniature people: Elderly people sitting on coins stack. social security income and pensions. Money saving and Investment. Time counting down for retirement concept.

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The long-standing 4% rule, once considered a cornerstone of retirement planning, is losing credibility among experts. New research shows that fixed-rate withdrawals are overly rigid and can fail under slight changes in market returns or inflation, leaving retirees either underfunded or overly conservative.

Even Bill Bengen, the rule's originator, calls it an oversimplification. Financial planners are increasingly exploring flexible withdrawal strategies, life annuities and TIPS ladders as alternatives that better adapt to market conditions and client needs.

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Forget the 4% rule: Why fixed-rate retirement withdrawals fall short