Four Ways to Prevent Feeling Regret in Retirement
Making financial plans for decades into the future can be daunting, but focusing your efforts is key to achieving freedom, financial and otherwise, in your golden years.
As a working American, you’ve likely dreamed of the day when you can finally hang up your hat for good and retire. Some dream of traveling the world, or moving to a tropical area, or simply spending time indulging in hobbies. Unfortunately, that’s not the reality for many retirees.
A recent study from MedicareFAQ found 59% of respondents are concerned about their financial situation in retirement. Meanwhile, 60% say they wish they would have started saving for retirement earlier or contributed more to their retirement savings.
Fortunately, there are steps working Americans can take now to achieve financial security in retirement and avoid living with regret.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Trying to financially plan for life decades into the future is overwhelming. Health care costs, longer life expectancies, inflation and cost-of-living increases are just some of the considerations when you’re figuring out how much money to save. These four tips can help you prevent regret in retirement:
1. Decide how you want to spend your golden years.
To start, make a plan for how you want to spend your retirement. Do you dream of traveling the world, or purchasing your dream home, boat or RV? Developing goals for retirement can help you get an idea of how much money you’ll need to save to achieve those goals. Making a bucket list can also be helpful. You might find you can start crossing items off your list during your working years, thus reducing the financial burden you could face in retirement.
2. Save early and often.
Saving is obviously another key step when planning for retirement, but unfortunately, a lot of people don’t begin saving early enough.
When it comes to saving for retirement, don’t wait. Time and compound interest are on your side. The sooner you begin saving, the more time your money has to grow.
If you haven’t already, check to see if your employer offers a 401(k) and company match. You can also open up an IRA, making contributions to it whenever possible.
If you can, figure out ways to make passive income during your working years. Investing in real estate and a high-yield savings account or CDs are other saving vehicles you have at your disposal.
3. Take care of your health.
It may not be top of mind, but maintaining your health during your working years can help you in retirement. According to the same MedicareFAQ report, 82% of respondents say they didn’t prioritize their health during their working years. Carving out time to exercise, eating a nutritious diet and developing healthy habits can lower your risk of illness later in life.
These illnesses may require you to undergo costly treatments or move into a long-term care facility, which can be expensive.
Being proactive about your health in the now not only increases your chances of a longer life, but it can also help you save on health care costs as you age.
Plus, it will increase your quality of life in the present.
4. Consider taking on a side hustle.
If you want to generate more income for retirement, consider tapping into today’s gig economy. Picking up side jobs, starting a small business or providing services that align with your skills and talents are all great ways to generate income on top of your regular salary.
The extra income can help you cover current expenses, pay off debt or increase your retirement contributions, which will only benefit you in retirement.
During our working years, many of us look forward to life in retirement. The additional free time allows us to slow down and enjoy life, giving us time to reflect and explore ourselves and the world around us. Don’t let financial burdens limit you or fill you with feelings of regret during one of the most precious phases of life. Preparing for retirement now will allow you to fully enjoy it when the time comes.
Pat Simasko is an investment advisory representative of and provides advisory services through CoreCap Advisors, LLC. Simasko Law is a separate entity and not affiliated with CoreCap Advisors. The information provided here is not tax, investment or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
Related Content
- How Getting Married Affects Your Social Security Benefits
- How Lower Interest Rates Could Affect Older Adults
- The Five Stages of Retirement (and How to Skip Three of Them)
- Six Financial Actions to Take the Year Before Retirement
- Five Things I Wish I’d Known Before I Retired
-
S&P 500 Tops 7,000, Fed Pauses Rate Cuts: Stock Market TodayInvestors, traders and speculators will probably have to wait until after Jerome Powell steps down for the next Fed rate cut.
-
The Met Opera May Sell Its Iconic Paintings. Is it a Good Investment?Buying the Marc Chagall murals would come with a big stipulation attached.
-
Do You Really Need All Those Phone Plan Perks?Unlimited data plans now come bundled with streaming, travel perks and device deals — but many people pay for extras they rarely use.
-
Today's Senior Living Communities Are Not Your Grandma's 'Old Folks' Home': An Expert Guide to Shopping for the Right FitSenior living facilities have improved and are as diverse as the people who inhabit them. Now, they're more than just a place to go — they're a place to grow.
-
3 Common Misconceptions About Working With a Financial PlannerThink financial planners are only for the wealthy and that AI can replace human advice? Nope. Even people with moderate wealth need professional advice.
-
Should You Consider Investing in the Quantum Computing Sector? This Investment Adviser Has Some SuggestionsInvestors interested in quantum computing could consider ETFs focused on cloud services enabling small businesses to use big technology.
-
I'm an Estate Planning Attorney: These Are the Estate Plan Details You Need to Discuss (And What to Keep Private)Gen Xers and Millennials would like to know if they're going to inherit (and how much), but Baby Boomers in general don't like to talk about money. What to do?
-
I'm a Financial Adviser: This Is How You Can Minimize the Damage of Bad Market Timing at RetirementPoor investment returns early in retirement on top of withdrawals can quickly drain your savings. The ideal plan helps prevent having to sell assets at a loss.
-
'You Owe Me a Refund': Readers Report Challenging Their Attorneys' BillsThe article about lawyers billing clients for hours of work that AI did in seconds generated quite a response. One law firm even called a staff meeting.
-
7 Questions to Help Kick Off an Estate Planning Talk With Your ParentsIt can be hard for aging parents to discuss estate plans — and for adult kids to broach the topic. Here are seven questions to get the conversation started
-
Down But Not Out: 4 Reasons Why the Dollar Remains the World HeavyweightThe dollar may have taken a beating lately, but it's unlikely to be overtaken as the leading reserve currency any time soon. What's behind its staying power?
