Starting early and saving more can help you avoid common retirement regrets and build lasting financial security. Most retirees’ biggest regrets are not saving enough and not starting to save early; both can impact your finances and overall happiness later in life. Starting to save even small amounts early on pays off massively over time, thanks to compounding interest. With people living longer and traditional pensions becoming less prevalent, saving more than feels comfortable now can make the difference between merely getting by and truly enjoying retirement.
Retirement has changed due to longer life spans, shrinking pensions, and rising health care costs. Guardian Life Insurance’s “14th Annual Workplace Benefits” study reveals that the top two retirement regrets among Americans in 2025 were not saving enough and not starting to save earlier. Retirees who regretted their financial preparation were three times more likely to report low emotional well-being than those who didn’t. Guardian’s data shows that two in five workers and one in five retirees regret how they prepared financially.
Compounding interest rewards those who invest for long periods of time. The earlier you start saving and investing, the more time your money has to compound and grow. That extra time matters even more when you consider that many people retire sooner than expected. The Federal Reserve’s “Economic Well-Being of U.S. Households in 2024” report echoed this sentiment, with just 35% of non-retired adults viewing their retirement savings plan as on track.
Starting early isn’t about perfection or large contributions; it’s about momentum. Even small, automatic deposits into a 401(k) or IRA build over time. Moreover, power isn’t just in the growth of your account value, it’s in the habit of saving. Many people focus on the financial side of retirement but fail to take into account purpose. Having hobbies, connections, and a sense of fulfillment also matter in your non-working years. The other retirement regret is not saving enough. That is an increasingly common issue as life expectancy rises and fewer people have traditional pensions. With longer life expectancy come higher healthcare costs. To avoid this, save more than you feel you can. Automatic escalation in retirement plans has been shown to significantly improve long-term savings without reducing short-term lifestyle. The two biggest regrets about retirement usually are waiting too long to start saving and saving too little.
Read more at Yahoo Finance: Want a Happier Retirement? Try These Two Easy Habits