What Do Retirees Wish They Knew Before Leaving the Workforce?

Retirement is often painted as the golden phase of life, where one can finally relax, pursue hobbies, and enjoy the fruits of decades of hard work. Yet, as many retirees will tell you, this period can also come with its share of regrets—some of which could have been avoided with a bit more foresight. Through conversations with people in their 70s and 80s, a recent video on the "My Retired Life" YouTube channel highlighted several common regrets that retirees face. These insights can serve as a guide to those of us still on our way to retirement, helping us to plan better and live our golden years to the fullest.

1. "I Wish I Had Retired Earlier"

Many retirees express regret over not retiring earlier. The Employee Benefit Research Institute’s 2024 Retirement Confidence Survey found that while many people plan to retire around age 65, the median actual retirement age is 62. This suggests that a significant number of people could afford to retire earlier than they do, but often delay the decision due to concerns over financial security.

However, those extra years at work could come at a cost. Health declines with age, and the energy to pursue retirement dreams—whether it’s traveling the world or simply enjoying more leisure time—diminishes as well. The earlier you can retire, the more time you have to enjoy your retirement in good health.

Takeaway: If your financial situation allows, consider retiring earlier. Consult a financial advisor to determine if you can retire sooner without compromising your financial security. This could give you more years to enjoy life to the fullest.

2. "I Wish I Had Spent More in My Early Retirement Years"

A common regret among retirees is not spending more money during their early retirement years. Initially, many retirees are cautious, worried about outliving their savings. But this cautiousness often leads to missed opportunities—whether it’s traveling, trying new hobbies, or simply enjoying life’s pleasures.

A survey by Lincoln Financial Group found that 62% of retirees would go back and change their post-career financial planning, with 37% expressing concern over their retirement preparedness. This reflects a broader issue: many retirees end up with more savings than they expected at the end of their lives, money that could have been used to enrich their retirement years.

Takeaway: Balance saving and spending. While it's important to be cautious, don’t let fear prevent you from enjoying your retirement. Plan your finances to allow for some indulgence in your early retirement years when you’re most likely to enjoy it.

3. "I Wish I Had Taken Better Care of My Health"

Health is wealth, especially in retirement. Many retirees regret not prioritizing their health earlier in life. According to the National Council on Aging, nearly 80% of adults aged 60 and up have two or more chronic conditions, many of which could have been prevented or managed better with a healthier lifestyle.

Bad diets and sedentary lifestyles can lead to chronic health issues that not only diminish quality of life but also result in frequent doctor visits and medical expenses in retirement. This regret highlights the importance of staying active and eating well—not just for today but for a healthier retirement.

Takeaway: Invest in your health now. Regular exercise, a balanced diet, and regular check-ups can go a long way in ensuring that you’re healthy enough to enjoy your retirement years.

4. "I Wish I Had Taken Up a Hobby"

Retirement often comes with an unexpected challenge: the loss of structure and social interaction that work provides. Without hobbies or activities to fill the void, retirees can find themselves feeling idle and purposeless.

More than one-third of older adults aged 50 to 80 experience a lack of companionship, and a similar proportion report infrequent contact with people outside their homes. This can lead to mental health issues, including depression and anxiety. Moreover, boredom and inactivity are linked to increased risks of chronic conditions such as obesity and cardiovascular disease.

Takeaway: Cultivate hobbies and social connections before retirement. Whether it’s gardening, painting, volunteering, or joining a social group, having activities that bring you joy and fulfillment is crucial to maintaining mental and physical health in retirement.

5. "I Wish I Had Traveled More"

Many retirees regret not traveling more when they were younger and healthier. Travel can enrich your life, offering new experiences, memories, and perspectives. However, the latest Transamerica Center for Retirement Studies survey found that only 36% of retirees spend a significant portion of their retirement traveling. Instead, spending time with family and friends and pursuing hobbies often take precedence.

Even if extensive travel isn’t in the cards, exploring more of your surroundings—whether through road trips, local excursions, or even cultural experiences closer to home—can still add a lot of value to your retirement years.

Takeaway: Prioritize travel early in retirement. Whether it’s a trip around the world or a road trip across your state, make it a point to explore and experience new things while you’re still healthy and mobile.

6. "I Wish I Had Downsized Sooner"

Many retirees regret not downsizing their homes earlier in retirement or even before retiring. Larger homes come with higher maintenance costs, property taxes, and utility bills—expenses that can eat into retirement savings. Downsizing to a smaller, more manageable home not only reduces these costs but can also free up capital that could be used for travel, hobbies, or other retirement activities.

Takeaway: Consider downsizing your home as you approach retirement. Moving to a smaller, more affordable property can reduce your living expenses and potentially provide additional funds to enhance your retirement lifestyle.

7. "I Wish I Had Been More Open to Change"

Retirement is a significant life transition, and many retirees wish they had been more adaptable during this period. Clinging to old routines or resisting new opportunities can lead to missed experiences and a less fulfilling retirement. Those who embrace change—whether by moving to a new location, trying out new hobbies, or even starting a second career—often report greater satisfaction in retirement.

Takeaway: Be open to change and new experiences in retirement. Whether it’s trying something completely new or simply adjusting your daily routine, embracing change can lead to a richer, more rewarding retirement.

8. "I Wish I Had Planned for Long-Term Care"

One of the most significant regrets among retirees is not planning adequately for long-term care. As people age, the likelihood of needing some form of assisted living or nursing care increases, and the costs associated with these services can be substantial. Many retirees find themselves unprepared for these expenses, which can quickly deplete their savings and place a burden on their families.

Takeaway: Include long-term care planning as part of your retirement strategy. Consider options like long-term care insurance or setting aside specific savings to cover these potential costs. Preparing for the possibility of needing long-term care ensures that you can maintain your quality of life without jeopardizing your financial stability.

What Are the Financial Fears Behind Delayed Retirements?

As you plan for retirement, it's important to be aware of the financial concerns that lead many to delay it. A recent study by F&G Annuities & Life Inc. revealed that 68% of pre-retirees over 50 are considering delaying their retirement due to financial worries. Here are some of the most common fears:

1. Not Having Enough Money: Many are concerned that they haven’t saved enough. Vanguard's "How America Saves" report shows that the average retirement account balance for those aged 55 to 64 is $244,750, with the median even lower at $87,571. This is probably not enough to sustain a comfortable retirement for many retirees, especially those who had higher income during their working years.
   Solution: Save aggressively, aiming to have around 10 times your final salary by retirement age. Automate contributions to your retirement accounts and take full advantage of tax breaks and employer 401(k) matches.

2. Inflation: Rising prices are a major concern, especially for those on fixed incomes. With inflation rates often exceeding the Federal Reserve’s 2% target, many are worried about their purchasing power.
   Solution: Consider delaying Social Security benefits until age 70 to maximize your monthly income. Additionally, make sure your investment strategy is not overly conservative to protect against inflation.

3. Lack of a Safety Net: With fewer people having pensions and the uncertainty surrounding Social Security, many fear running out of money.
   Solution: Consider annuities that offer guaranteed income for life, but consult with a fiduciary financial advisor to ensure it’s the right move for you.

4. Economic Downturns: The fear of recessions or stock market crashes is real, especially for those who have lived through events like the 2008 financial crisis.
   Solution: Maintain a diversified portfolio and keep enough short-term cash reserves on hand, allowing you to ride out market downturns without having to sell investments at a loss.  The amount of short-term cash reserves that you keep on hand will vary with each person’s risk tolerance, willingness and ability to accept potentially lower returns on cash, and spending pattern.

Bottom Line

Retirement should be a time of joy and fulfillment, not regret. By learning from the experiences of those who have already retired, you can take proactive steps to avoid common pitfalls. Whether it's retiring earlier, spending wisely, prioritizing your health, or ensuring you have fulfilling hobbies and travel plans, the key is intentionality. Plan for the retirement you want—not just financially but in all aspects of life. That way, you can look back on your retirement years with pride, knowing you made the most of them.

By keeping these lessons in mind and planning accordingly, you can position yourself for a retirement filled with satisfaction, fulfillment, and joy—free from the regrets that often plague others.

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Reference

Employee Benefit Research Institute (EBRI). (2024). Results from the 2024 Retirement Confidence Survey: Workers' and Retirees' Confidence Has Not Recovered from the Significant Drop Seen in 2023, But Majorities Remain Optimistic About Retirement Prospects. Retrieved from the Employee Benefit Research Institute website: https://www.ebri.org/content/results-from-the-2024-retirement-confidence-survey-find-workers--and-retirees--confidence-has-not-recovered-from-the-significant-drop-seen-in-2023--but-majorities-remain-optimistic-about-retirement-prospects

Yahoo Finance. (2024). YouTuber Asked Americans Aged 70+ What They Regret Most in Retirement. Retrieved from Yahoo Finance website: https://finance.yahoo.com/news/youtuber-asked-americans-aged-70-100500834.html

My Retired Life. (2024). Retirement Regrets: What Retirees Wish They Knew Before Leaving the Workforce [Video]. YouTube. Retrieved from https://www.youtube.com/watch?v=mNUSJ3juAbA