Some wish they'd hired a financial advisor, while others regretted expensive purchases. Others said they took Social Security too early or retired without a long-term financial plan.
More than two-thirds of retirees wish they would have saved more and on a consistent basis — and half wish they hadn't waited so long “to concern themselves with saving and investing for retirement,” according to the researchers.
Retiree Regrets
Meanwhile, nearly 7 in 10 retirees (69%) say they did as much as they could to prepare for retirement, according to the findings. That said, they also indicated there were some things they wished they had done differently. 76% agree they wish they would have saved more and on a consistent basis.
On average, 63 is the ideal age for retirement according to both retirees and pre-retirees. While current retirees are hitting close to that mark with an average actual retirement age of 62, there are signs that future retirees could have more difficulty retiring at their ideal age.
“For my own personal mental health and well-being, I like being active and working.” Cavedon is part of a growing number of baby boomers, many of whom are college-educated, who continue to work well past 65 not because they can't afford to retire, but simply because they love their work—and don't want to give it up.
“In similar research that we conducted a decade ago, we also found a strong relationship between happiness and planning, as retirees who expressed the highest levels of satisfaction were also those who took concrete steps to put their emotional and financial lives in order at least five years before retirement.
Around 1 in 3 retirees say they feel depressed or down after retiring, and it makes sense. Moving from one era to the next is a huge transition, and big life events make an impact on mental, emotional and physical health.
The recipients, primarily members of Generation X (those born between 1965 and 1980), millennials (1981-1996) and Gen Z (1997-2012), are expected to inherit $72 trillion of that amount, mainly from baby boomers, with the rest going to charity.
Common regrets include not saving enough for retirement, taking Social Security too early, not prioritizing education, or not preparing financially for an unexpected medical diagnosis.
“A unique historical situation — strong economic growth, affordable housing markets and booming equity markets — allowed them to build up a handsome fortune,” Allianz researchers wrote.
According to Buffett, you should invest 90% of your retirement funds in stock-based index funds. According to Buffett, the remaining 10% should be invested in short-term government bonds.
For personal finance guru Dave Ramsey, one retirement account option stands apart from the rest. Ramsey recommended contributing to a company-administered 401(k), but not necessarily the traditional version. “We always recommend the Roth option if your plan offers one,” said Ramsey.
Famed financial guru Suze Orman once told Paula Pant on the “Afford Anything” podcast that $2 million isn't enough to retire early on. So, how much does she say you will need to live comfortably in your golden years? She advocates saving significantly more — closer to $5 or $10 million to retire early.
Overall, 22% of Americans said not saving for retirement early enough is their top financial regret. Older generations, who are closest to retirement, were more likely to cite not starting to save early enough as their biggest regret than younger generations.
The 90/10 rule in investing is a comment made by Warren Buffett regarding asset allocation. The rule stipulates investing 90% of one's investment capital toward low-cost stock-based index funds and the remainder 10% to short-term government bonds.
Indeed, that education appears as the number one regret of Americans is a remarkably consistent finding across these studies (e.g., should have stayed in school, should have studied harder, should have gotten another degree).
I found that nearly all regrets fall into four core categories—foundation regrets, boldness regrets, moral regrets, and connection regrets. Foundation regrets. Many of our education, finance, and health regrets are expressions of the same core regret: our failure to be responsible, conscientious, or prudent.