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.
1) Not Changing Lifestyle After Retirement
Among the biggest mistakes retirees make is not adjusting their expenses to their new budget in retirement.
JBS Financial Strategists CEO Jenny Brown agreed that a key regret of many seniors was not starting early on extra super contributions. “Even if it's a small amount, make sure you pay yourself first and put some money away,” she said. “Often it's too late at 60 or 65 when you want to retire.
Quality of life increases from 50 years (CASP‐19 score 44.4) to peak at 68 years (CASP‐19 score 47.7). From there it gradually starts to decline, reaching the same level as at 50 years by 86 years. By 100 years, CASP‐19 score has declined to 37.3.
The elders deeply regret worrying about things that never happened or things they had no control over. “Life is so short. What you will regret is weeks or months of the kind of mindless, self-destructive ruminating worrying that people do,” many told Pillemer. “You're going to wish you had that time back.”
Retirees who took steps to set themselves up financially and take care of their health at least five years prior to retirement are more likely to report being much happier in retirement.
Senior Citizens' Saving Scheme
SCSS is arguably the first choice for most retirees.
Disenchantment: This stage of retirement is when the initial excitement wears off, and you may experience feelings of boredom or disappointment. This can sometimes lead to depression, as retirement may not feel like it's living up to what it should.
Returns were particularly poor in 1966, 1969, 1973 and 1974. "Notably, after 1982, or about halfway through the 30-year retirement that started in 1966, the markets actually did really well," Pfau observes.
The median income for Americans 65 and older is $50,290. The mean (average) is $75,020. Average annual expenditures for Americans 65 and older are $57,818. The average Social Security retirement benefit check is $1,907 as of January 2024.
Traditionally, 65 has been considered an ideal age to retire, but when and how people retire seems to be changing.
1. Saving Enough Money: Perhaps the top retirement concern is the idea that without steady employment, it might be difficult to have enough resources to maintain your preferred lifestyle.
As reported in the article “Are You On Track for Retirement?” she advocates having at least one times your current income saved by 30. She also says you should have three times your current income by the age of 40 and six times by the age of 50.
The safe withdrawal rule is a classic in retirement planning. It maintains that you can live comfortably on your retirement savings if you withdraw 3% to 4% of the balance you had at retirement each year, adjusted for inflation.
Financial planners often recommend replacing about 80% of your pre-retirement income to sustain the same lifestyle after you retire. This means that if you earn $100,000 per year, you'd aim for at least $80,000 of income (in today's dollars) in retirement.
When asked when they plan to retire, most people say between 65 and 67. But according to a Gallup survey the average age that people actually retire is 61.
Among current retirees, 31% say declining health or illness is their biggest worry, according to CNBC's August 2024 Your Money retirement survey conducted with SurveyMonkey — the most common response.
The results
The top two states to retire in according to our formula are — drumroll please — Alaska and New Hampshire!
1) “I wish I'd had the courage to live a life true to myself, not the life others expected of me.” 2) “I wish I hadn't worked so hard.” 3) “I wish I'd had the courage to express my feelings.” 4) “I wish I had stayed in touch with my friends.” 5) “I wish I had let myself be happier” (p. v).
Stay active. Going to the community pool, taking short walks, getting out to see a movie, and just visiting with friends are small moments of activity that can bring great happiness and purpose to a long life.
Late Adulthood (Age 80+): Wisdom – Those with long lives have acquired a rich repository of experiences that they can use to help guide others. Elders thus represent the source of wisdom that exists in each of us, helping us to avoid the mistakes of the past while reaping the benefits of life's lessons.