Retiring in Hawaii means planning for a place where groceries, electricity and housing cost more than almost anywhere else in the country. You may want to stay close to the ohana, help with a grandchild's tuition or keep up the trips to see family on the mainland. Whatever you have in mind, a few numbers each year shape how far your savings can go. Here are the ones worth knowing for 2026, why they matter and one next step for each.

$24,500: What you can put into your workplace plan

This year you can contribute up to $24,500 to a 401(k), 403(b), governmental 457 plan or the federal Thrift Savings Plan. That's up from $23,500 in 2025.¹

Why it matters: Many people here work for an employer that offers a 401(k), 403(b), 457, or TSP. Knowing how much you can contribute each year will help you plan for retirement and avoid penalties.

Bankoh Advisors tip: Check your contribution rate before your last paycheck of the year. Even a 1% increase can add up over time, especially if your employer matches part of it.

$8,000 and $11,250: Catch-up room after 50

If you're 50 or older, you can contribute an extra $8,000, for a total of $32,500. If you're 60 to 63, the catch-up limit rises to $11,250.²

Why it matters: Your 60s are often your peak earning years, and the kids may be off the payroll. This is a short window. Once you turn 64, you go back to the standard catch-up limit.

Bankoh Advisors tip: If you're about to turn 60, ask whether your plan offers the higher catch-up. Then set your payroll deferrals so you use it fully.

$150,000: The new Roth catch-up rule

Starting in 2026, if your prior-year wages from your employer were more than $150,000, your catch-up contributions must go into a Roth account.²

Why it matters: You won't get a tax deduction on those catch-up dollars this year. In return, qualified withdrawals in retirement are tax-free. For many Hawaii households, that tax-free income later could be worth more than the deduction today.

Bankoh Advisors tip: Find out whether your plan offers a Roth option. If it doesn't, ask HR how it will handle catch-up contributions.

$7,500 plus $1,100: Your IRA limit

You can contribute up to $7,500 to an IRA this year. If you're 50 or older, you can add $1,100 more, for a total of $8,600. Eligibility to contribute directly to a Roth IRA phases out between $153,000 and $168,000 for single filers and between $242,000 and $252,000 for married couples filing jointly.¹

Why it matters: An IRA gives you room to save beyond your workplace plan, often with more investment choices. You have until your tax filing deadline to make your 2026 contribution.

Bankoh Advisors tip: If you're married and only one of you works, a spousal IRA can let you save for both of you. Ask your advisor if you qualify.

$202.90: The monthly Medicare Part B premium

The standard Part B premium is $202.90 a month in 2026, with a $283 annual deductible. Your premium is higher if your 2024 income was more than $109,000 as a single filer or $218,000 as a joint filer.³

Why it matters: Medicare looks back two years to set your premium. A large IRA withdrawal or a big gain from selling property in 2026 could raise what you pay in 2028.

Bankoh Advisors tip: If you're thinking about selling a rental, condo or family property, talk with your advisor about the timing first. Spreading income across more than one year can help keep your premiums down.

$0: Hawaii state tax on Social Security

Hawaii fully exempts Social Security benefits from state income tax. Employer-funded pensions are generally exempt too. Withdrawals from 401(k)s and IRAs that come from your own contributions are taxable.⁴

Why it matters: Retirement income gets taxed differently depending on where it comes from. Knowing which accounts are taxed in Hawaii can help you decide which ones to draw from first, and that can make your savings last longer.

Bankoh Advisors tip: Bring a list of your expected income sources to your next review, including Social Security, any pension and your retirement accounts. Together we can map out a withdrawal order that works for your tax situation.

$8,000: Hawaii's new standard deduction

Under Act 46, Hawaii's standard deduction for 2026 rises to $8,000 for single filers and $16,000 for joint filers, up from $4,400 and $8,800. It's part of the largest income tax cut in state history, and it phases in through 2031.⁵

Why it matters: You'll keep more of each paycheck. That money can go toward your retirement savings instead of everyday spending.

Bankoh Advisors tip: If your take-home pay went up this year, consider moving the difference into your 401(k) or IRA. It's a raise you can save without feeling it in your budget.

Your next step

These numbers change every year, and your plans may change with them. Bankoh Advisors offers national-caliber advisors with local insight. We approach financial planning holistically, utilizing an array of financial tools to help you reach your personal, family and generational goals. If you’d like to explore ways to maximize your retirement income, schedule a private consultation today.

This material is for informational purposes only and should not be considered tax or legal advice. Please consult your tax professional regarding your individual situation. 

Bankoh Advisors is a marketing name of Cetera Investment Services. Securities and insurance offered through Cetera Investment Services LLC, member FINRA/SIPC. Cetera is under separate ownership from any other named entity. Investments are: Not FDIC/NCUSIF insured | May lose value | Not financial institution guaranteed | Not a deposit | Not insured by any federal government agency.

Individuals affiliated with Cetera firms are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services. 130 Merchant Street CC888 Honolulu, HI 96813. 808-694-8500

Sources

1. IRS, "401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500," IR-2025-111
2. IRS, "Retirement topics: Catch-up contributions"
3. Medicare.gov, "2026 Medicare costs"
4. Hawaii Department of Taxation, Announcement No, 1996-08 (Act 96-5)
5. Hawaii Department of Taxation, Announcement No. 2024-03 (Act 46)