Key takeaways
- What most retirees regret most is not having saved enough and not having started saving early; Both can affect your finances and overall happiness in the future.
- Starting to save even small amounts early on pays big dividends over time, thanks to compound interest.
- Now that people are living longer and traditional pensions are disappearing, saving more than you’re comfortable with today can make the difference between simply getting by and truly enjoying retirement.
Retirement has changed due to longer life expectancy, reduced pensions and rising healthcare costs. What was once a quiet chapter in one’s life now demands a more complex phase of planning and preparation.
Guardian Life Insurance’s 2025 “14th Annual Workplace Benefit” study shows that the top two retirement regrets for Americans are not saving enough and not starting to save sooner. These regrets don’t just affect bank accounts; They also negatively affect emotional health, life satisfaction, and freedom in retirement.
Retirees who regretted their financial preparedness were three times more likely to report low emotional well-being than those who did not. The takeaway from this is clear: Much of your happiness in retirement comes from saving more and starting to save long before retirement begins.
Start saving sooner: the advantage of compounding
Guardian data shows that two in five workers and one in five retirees regret how they prepared themselves financially. One of the best ways to avoid that regret is to start saving sooner.
Compound interest rewards those who invest over long periods of time. The sooner you start saving and investing, the more time your money will have to accumulate and grow. A 25-year-old who invests $200 a month in a retirement account that earns 6% annually will have about $400,000 by the time he or she is 65. If the same person started at 35, they would have about half as much. And if someone starts at 45, they would have $93,000.
That extra time matters even more when you consider that many people retire earlier than expected. Guardian found that 70% of retirees left work earlier than planned due to something outside their control, and a third said it was because of health problems or job loss. So you may not get those extra years to save that you assumed you would.
The Federal Reserve’s “Economic Wellbeing of American Households in 2024” report echoed this sentiment: Only 35% of non-retired adults believe their retirement savings plan is on track. People already feel behind and the longer they wait, the harder it can be to catch up.
Starting early is not about perfection or great contributions; It’s about momentum. Even small, automatic deposits into a 401(k) or IRA add up over time. And if your employer offers a match, saving at least the amount needed for the match makes a big difference, since it’s basically free money.
Furthermore, the power is not just in the growth of your account value, but in the habit of saving. Each contribution makes the next easier. People who start saving early don’t regret it; those who don’t, almost always do.
Important
Many people focus on the financial aspect of retirement but don’t consider the purpose. Having hobbies, connections, and a sense of fulfillment are also important in your non-working years.
Save more – small increases make a big difference
The other retirement regret is not saving enough. This is an increasingly common problem as life expectancy increases and fewer people have traditional pensions. The US Census Bureau estimates that the average life expectancy in 2060 will be almost 86 years.
Combine that with the U.S. Bureau of Labor Statistics’ finding that only 15% of private-sector workers have access to a traditional pension plan, and you understand how important personal savings (401(k), IRAs, brokerage accounts) are now as sources of retirement income.
Longer life expectancy comes with higher healthcare costs. Guardian reports that 65-year-olds retiring in 2025 can expect to pay $172,000 on health care in retirement, and the average retiree spends 30% of their Social Security income on health care. That leaves little room for living well, traveling, helping family or emergencies.
To avoid this, save more than you think you can. Automatically increasing retirement plans has been shown to significantly improve long-term savings without reducing short-term lifestyle.
For example, increasing your savings rate by 1% each year may not seem like much, but it will have a big impact on your income in the future without reducing the quality of your life now.
The conclusion
The two biggest retirement regrets tend to be waiting too long to start saving and saving too little. Both are completely avoidable. Starting early and saving consistently can make a big difference over time, helping you feel more secure and less stressed about the future. A little discipline and consistency now can go a long way toward avoiding “I wish I’d done it” moments later.
