6 Financial Regrets Retirees Face — And How To Avoid Them
It’s not uncommon to have financial regrets, from spending too much on random purchases to not saving enough for a vacation. But when it comes to retirement planning, mistakes can be costly.
Here are six regrets you’ll want to avoid as you preserve your prime.
1. Not saving early
It’s never too late to start saving money and building your nest egg, but starting early will pay off. The best time to start is now, even if retirement is decades away. It’s easy to overlook the need to save when you’re in your 20s and 30s and have many working years ahead of you, but those are some of the most important years to build your wealth.
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2. Taking Social Security too soon
You can take Social Security when you turn 62, but your payments will be reduced if you compare or wait. Tapping into Social Security as soon as possible may help cover expenses in the short term, but it may not make sense for your long-term financial picture.
Some people consider working a few extra years to delay receiving Social Security.
3. Estimating health care costs
Health care costs are rising, and in retirement, you may need to invest in health care more than you realize. In a 2025 report, Fidelity Investments estimates that a 65-year-old retiree can expect to spend an average of $172,500 on health care and medical expenses during retirement — an increase of more than 4% from 2024.
Saving money for health care, including tax-advantaged accounts like health savings accounts (HSAs), can help.
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4. Failure to organize withdrawals in an orderly manner
Withdrawing from retirement plans allows you to tap into all of your savings over the years, but if you rush the process, you could end up with a higher tax bill than you expected. Strategic withdrawals allow you to maximize the amount of your nest egg each year while reducing your tax burden.
Understanding required minimum distributions (RMDs) and tax planning are important parts of a retirement strategy.
5. Over reliance on single income education
Social Security can be a big part of your financial picture, but assuming you’ll be able to survive on those payments alone may be a mistake.
Relying exclusively on one source of income to fund your retirement lifestyle can lead to many difficult decisions in the long run, and may require you to sell financial assets when their value has fallen if you’re in trouble. It’s best to separate your income streams.
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6. Ignoring estate planning
Retirees who leave estates to their heirs must ensure that the money reaches the right people. Setting up a housing program alleviates those concerns.
