A recent Bankrate Financial Regret Survey found that fully 77% of U.S. adults had at least one financial regret. (I suspect that the other 23% just didn't think hard enough, because it's hard to reach adulthood without regretting some money moves we've made.) A key regret, expressed by 22% of respondents, was not saving enough for retirement.
Interestingly, some of the other regrets also relate to retirement savings. Let's review some regrets and see how retirement savings can be boosted.
Plenty of surveys have revealed that Americans are under-saving for retirement. For example, here are some alarming numbers from the 2024 Retirement Confidence Survey.
Amount in savings and investments* |
Percentage of workers |
---|---|
Less than $1,000 |
14% |
$1,000 to $9,999 |
8% |
$10,000 to $24,999 |
7% |
$25,000 to $49,999 |
7% |
$50,000 to $99,999 |
11% |
$100,000 to $250,000 |
14% |
$250,000 or more |
38% |
See? Fully 47% of workers have less than $100,000 socked away, and 61% have less than $250,000. Yes, some of them are still quite young. But plenty of them are in their 40s, 50s, and 60s. If you have $250,000, that might seem like a lot, but it might only deliver around $10,000 in annual income -- if, for example, your withdrawal strategy is the 4% rule or something like it.
Remember that you'll likely have Social Security benefits in addition to whatever income you can create on your own, but that may not provide as much as you'd like. The average monthly Social Security retirement benefit was only $1,920 as of August, after all, amounting to about $23,000 annually.
You can get a clearer idea of how much you can expect from Social Security by setting up a my Social Security account at the Social Security Administration (SSA) website. You might be able to beef up your benefits, too -- there are multiple ways to increase your Social Security benefits.
Here are some other major financial regrets from that survey:
Each of us, unless we're financially independent, should have an emergency fund, with enough accessible cash to keep us afloat for at least three to six months. That means it should be able to cover everything -- housing, utilities, taxes, food, transportation, and other non-negotiable expenses.
Without an emergency fund, you can end up taking on costly debt or taking funds from a retirement account, both of which can jeopardize your future financial security. If you're busy making debt repayments, that money can't be used for investments in retirement accounts. And if you remove, say, $10,000 from a retirement account, whether temporarily or permanently, you lose out on a few or many years of growth. If that $10,000 could have grown at, say, 8% over 20 years, it could have amounted to nearly $47,000 -- a rather useful chunk of income in retirement.
Since credit card interest rates -- which recently averaged 25%, per LendingTree -- tend to be so high, credit card debt can really be dangerous. Imagine owing $40,000 at an interest rate of just (!) 20%. You'd be on the hook for around $8,000 in interest payments alone each year. That doesn't even cover paying down the principal. It's hard to save for retirement and build a big nest egg when you're forking over hefty sums to lenders.
So -- what can you do, especially if you're behind in your retirement savings? Here are some ideas:
Don't leave your retirement to chance. Plan for retirement carefully, being sure to factor in healthcare costs, too. Don't be afraid to consult a financial advisor, either. The better you plan, the fewer regrets you'll likely have.
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