7 Big Regrets for Current Us Retirees

Americans work long and hard to enjoy their retirements, so it’s dismaying to hear so many retirees express regrets over how their golden years are playing out.

Exhibit “A” is a recent survey of US retirees by the YouTube channel My Retired Life. The channel tracked Americans in their 70s and 80s to check how their post-working years were going. Some regrets were from a lifestyle point of view, and some were from a financial point of view, but they all add up to significant discontent among retirees.

Other studies from financial media platforms, money management firms, major banks, industry think tanks, and consumer advocacy groups yielded the same results.

What tops the list of US retiree regrets? Here’s a rundown along with expert commentary on the “why’s” and “what to do” aspects of the remorse issue.

Major Financial Regrets

A 2024 Bankrate study noted that 77% of American retirees have “financial regrets” for various reasons.

This is from the study:

“(Of those regrets), 22% regret not saving for retirement early enough, 18% regret not saving enough for emergency expenses, and 14% regret taking on too much credit card debt,” the study reported.

The shift from saving to income management is particularly hard on retirees, financial experts say.

“Throughout my career as an investment advisor, I’ve seen firsthand that many of my clients have found the transition to retirement to be more difficult than they expected,” says Dave Fortin, CFA and co-founder at investing platform FutureMoney. “One of the biggest challenges recent retirees face is the shift from the accumulation phase to the decumulation phase.”

Many retirees have spent their whole lives trying to increase their net worth, Fortin says.

“In retirement, your net worth typically decreases as you dip into your life savings,” he says. “This shift can be difficult psychologically. Net worth can often get tangled up with self-worth,” Fortin notes. “I’ve seen recent retirees sacrifice their quality of life to keep their expenses low to maintain their net worth.”

Fears over what retirees didn’t do. Money management experts also see too many retirees not spending enough of their savings and living too frugally even after retiring.

“Many people save diligently throughout their working years, but once they retire, they find it difficult to shift from a saving to a spending mindset,” says Justin Haywood,
president and co-founder of Haywood Wealth Management in Houston, Tex. “This can result in missed opportunities to enjoy travel, hobbies, or experiences they’ve long dreamed of.”

Haywood cites one husband and wife in his practice who spent the first 10 years of their retirement living very frugally. “By the time they were in their late 70s, they regretted not having traveled more or enjoyed other activities earlier, as they now felt too old to enjoy those experiences fully,” he says

There is a way forward from this regret, but it takes some diligence.

“Future retirees can learn from this by creating a balanced financial plan that encourages them to enjoy their retirement years while still ensuring their long-term financial stability,” Haywood says. “It’s important to balance maintaining financial security and embracing the opportunities that retirement offers, particularly in the early, more active years.”

Not saving enough. A lack of funds in retirement is becoming a sign of the times in the 2020’s and wealth advisors say there are multiple reasons for that regret.

“Most retires will say their biggest regret is that they did not understand the importance of savings consistently, even a small amount,” says Tania Brown, founder at Tania P. Brown Services LLC. In Lawrenceville, Ga.

One primary issue impacting pre-retirement savings was a need for more financial understanding of basic money principles.

“For example, many retirees have said they did not fully understand the power of compound interest over time,” Brown says. “They’ve also not accounted for inflation and how much it impacts spending. Nowadays, your highest utility bill was more than the first apartment you rented/first mortgage 20 years ago.”

Not accounting for a failing economy post-COVID. This is a more recent regret, but many retirees also didn’t account for pandemic-related shutdowns that significantly impacted the economy, income management, and interest rates.

“Nobody had a “plan B,” Brown says. “People were assuming the economic conditions they are in now will never change. For many, the goal was to sell their home, downsize, and use the proceeds to retire.”

The post-COVID market completely changed the retirement game. “Now, many people either in or nearing retirement now face the possibility of selling their home and using every penny of the equity as a downpayment versus a total sales price and still having a mortgage,” she says.

Not planning for unexpected expenses. One of the biggest retirement regrets financial advisors see is needing to save more for unexpected expenses.

Take dental expenses, which can be very costly.

“Some retirees reporting dental expenses ranging from $20,000 to $50,000 in a single year for procedures such as tooth replacement and maintaining overall dental health,” says Dave Riley, head of wealth management at Arcwood, a money management firm in Phoenix, Ariz.

Not handling taxes correctly. Another major regret stems from inadequate tax planning during a retiree’s working years. “I worked with a retiree who saved diligently for 30 years only to pay more taxes during retirement than the individual’s working years,” Riley says.

The tax burden was primarily due to saving exclusively in a 401(k). “That resulted in all retirement income being taxed as deferred income, which pushed the retiree into a higher tax bracket than during their working years despite having a lower income while employed,” he adds.

Not spending enough earlier in retirement. Many retirees regret underspending in retirement, and the root cause is almost always a lack of proper planning.

“Without a clear understanding of how much they can safely spend, retirees often err on the side of caution and end up living far more frugally than necessary,” says Tyler Meyer, a financial planner and founder of RetireToAbundance.com, a money management advisory platform. “Instead of enjoying the retirement they’ve worked so hard for, they hold back on travel, hobbies, and experiences because they’re unsure whether their savings will last. This fear is often misplaced and leads to missed opportunities in their healthiest and most active years.”

Lessons Learned for Future Retirees

While current retirees more or less have to live with their regrets, there’s a learning opportunity here for Americans still in the workforce and saving for retirement.

“The key lesson is that not having a solid financial plan breeds unnecessary fear and underspending,” Meyer says. “If you don’t know exactly what your retirement budget looks like, you’ll likely spend less just to avoid running out of money.”

Meyer says that with a well-designed plan that accounts for longevity, healthcare, and inflation, most retirees could spend more confidently without jeopardizing their financial future.

“A comprehensive financial plan is the difference between cautiously enjoying life and feeling like you’re constantly holding back,” he says. “Planning isn’t just about making sure your money lasts—it’s about understanding how you can enjoy your life now while still securing your future.”

It’s also helpful to remember that building a nest egg doesn’t happen overnight.

“The sooner you begin planning for retirement, the better off you’ll be,” says Satayan Mahajan, CEO of Datalign Advisory, an online platform that matches consumers with leading financial advisors. “A successful retirement starts at the fundamental level – create a budget and a financial plan. This planning will give you a realistic picture of your incoming and outgoing finances, ease your stress, and set you on the path to long-term financial security.”

Additionally, use a financial advisor to help you get on track and plan your savings strategically.

“An advisor can help you create a customized retirement plan that aligns with your unique financial situation and goals,” Mahajan says. “With longer life expectancies, planning for a retirement that could last 30 years or more is essential.”

“A financial advisor can help you prepare for healthcare costs, long-term care, and other expenses that may arise as you age,” he adds.