As the new year begins, many investors are on edge about the economy and their financial well-being. A study shows that only about half of the country feels optimistic about their money, while the other half worries daily about their finances or lives paycheck to paycheck. Additionally, only 47% of Americans are investing for the future—and 41% say they'd rather enjoy life now than save for retirement.

Market chaos, inflation, and the future are interconnected. However, it's essential to remember what can and can't be controlled. For example, the economy can't be controlled, but investment habits can be managed—no matter what's happening on Wall Street.

The path to becoming a millionaire runs through retirement accounts. That's where 8 in 10 millionaires built their wealth. And thanks to adjustments for inflation, more can be saved in workplace retirement accounts this year. For 2026, the IRS is raising the annual contribution limit for employer-sponsored retirement plans to $24,500. This includes those who contribute to a 401(k), a 403(b), most 457 plans, and the federal government's Thrift Savings Plan.

Economic Indicators to Watch in 2026

Economic indicators are just statistics and trends that give insight into how the economy is doing and where it might be headed. These economic indicators can be thought of as thermometers that help keep an eye on the temperature of the overall economy. Here are six of the major economic indicators to watch in 2026:

1. Stock Market: The stock market is similar to a local supermarket. But instead of buying bread and milk, you're buying and selling stocks (which are basically small pieces of ownership in a company). The S&P 500 index, which measures the performance of 500 of the largest companies in the US, has been forecast to slow down in 2025. However, growth in many sectors (especially tech) was stronger than expected.

2. Housing Market: Inventory remains low—many homeowners are stuck due to relatively high rates. Mortgage rates have recently come down and may drop more in 2026, but finding an affordable home remains challenging for many potential home buyers.

4. Unemployment Rate: The unemployment rate is a key indicator of the overall health of the economy. A low unemployment rate suggests a strong labor market and a growing economy.

5. Consumer Confidence: Consumer confidence is an important indicator of future economic activity. When consumers feel confident about the economy, they're more likely to spend and invest.

6. Gross Domestic Product (GDP): GDP is a measure of the total output of goods and services in the economy. It's a key