{"id":15725,"date":"2023-08-16T09:34:39","date_gmt":"2023-08-16T14:34:39","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=15725"},"modified":"2023-08-16T09:34:39","modified_gmt":"2023-08-16T14:34:39","slug":"top-5-financial-regrets-for-retirees","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/top-5-financial-regrets-for-retirees","title":{"rendered":"Top 5 Financial Regrets for Retirees"},"content":{"rendered":"
While many of us look forward to retirement, financial struggles and other unwelcome surprises can present challenges during this phase. Here are some common regrets retirees have, and strategies on how to help avoid them.\u00a0<\/strong><\/p>\n Retirement is meant to be a period of relaxation and enjoyment. However, it’s important to plan carefully to help ensure that your retirement can be enjoyed when the time comes.<\/span><\/p>\n For many retirees, certain financial decisions made early on in life can lead to financial regrets later down the line. In this blog, we will dive into the top financial regrets of retirees and offer some advice on how to help avoid them. Here\u2019s what you need to know.<\/span><\/p>\n The University of Pennsylvania\u2019s Wharton business school recently <\/a><\/span>surveyed older Americans on their financial regrets. They gathered insights from 1,764 Americans aged 50 and above, averaging<\/span> 72 years old. The research showed that this age group commonly has five noteworthy financial regrets. And those regrets increase significantly when people are encouraged to think more about how long they are likely to live. Let’s take a further look:<\/span><\/p>\n One of the most significant regrets that retirees often express is not saving enough during their working years. Approximately 57%<\/a> of retirees regret not saving more for retirement. Failing to build a nest egg can lead to financial stress, forcing retirees to compromise on their lifestyle or depend heavily on social security benefits.\u00a0<\/span>To help avoid this regret, it’s crucial to start saving as early as possible.<\/a> These tips can help prevent you from sacrificing your retirement plan:<\/span><\/p>\n By taking these steps, you can help avoid not saving enough, build a strong foundation for your golden years, and confidently embrace the future. Working alongside a financial advisor can also help ensure you stay on track.<\/span><\/p>\n As we age, the likelihood of needing long-term care increases. 40% regretted not buying Long Term Care (LTC) insurance.<\/a> The costs of medical care and assisted living facilities can quickly deplete one’s savings. While long-term care insurance may not be required for everyone, factoring in future health-related expenses is important in retirement planning.<\/span><\/p>\n This insurance can serve as a protective shield for your savings and assets, helping to cover long-term care costs<\/a> should the need arise. It can offer peace of mind, knowing you have a safety net to rely on without depleting your retirement funds. To help avoid this regret, the following tips can help:<\/span><\/p>\n While long-term care insurance might seem like an additional expense, it’s an investment that can safeguard your future health and financial stability. By taking these steps, you can help avoid the regret of not having this crucial safety net in place during your retirement years.<\/span><\/p>\n Around 23% of retirees <\/span><\/a>regret claiming their Social Security benefits early.<\/span> It might be tempting to grab those benefits as soon as you’re eligible, but be wary\u2014this decision can cast a long shadow. Social Security is designed to cover about 40% of your pre-retirement income. You might be short-changing yourself on those monthly payments by not holding off on claiming benefits. To help avoid this remorse, take these steps:<\/span><\/span><\/p>\n First, familiarize yourself with your full retirement age, typically 67, according to Social Security rules.<\/a> This is the age when you can claim your full benefit without any reduction due to early claiming. Next, take inventory of your health, family history, and overall life expectancy. If you have a family history of living well into your old age, waiting to claim benefits could be the best move.<\/span><\/p>\n 37% of retirees express regret about not working longer.<\/a> While retirement is seen as an opportunity to relax, continuing to work can provide financial benefits, a sense of purpose, and social engagement. Working part-time or pursuing a passion project can help stretch retirement savings further while helping to keep retirees mentally and emotionally fulfilled<\/span>:<\/span><\/p>\n 33% of retirees regret not taking advantage of the power of early investment<\/a>s. <\/span>Investing early can profoundly impact the trajectory of your retirement savings. In the same realm of not saving soon enough, the concept of compound interest again plays a pivotal role here. Compound interest refers to the phenomenon where not only the initial investment earns interest, but the accumulated interest also earns interest over time. This compounding effect can lead to exponential growth, helping to allow your money to work harder for you.<\/span><\/p>\n Working with a Fiduciary can help provide numerous benefits in achieving your financial goals in retirement. A Fiduciary advisor is a financial advisor who has an obligation to make financial decisions and recommendations that are in their clients\u2019 best interest. Your chosen advisor should help you create a personalized plan based on your unique circumstances, including income, expenses, and investment objectives. They can also provide guidance on navigating complex financial topics, such as Social Security benefits.<\/span><\/p>\nHelping Avoid Financial Regrets<\/b><\/h4>\n
1. Not Saving Enough<\/b><\/h4>\n
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2. Not Buying Long-Term Care Insurance<\/b><\/h4>\n
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3. Claiming Social Security Too Early<\/b><\/h4>\n
4. Not Working Longer<\/b><\/h4>\n
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5. Not Investing Early Enough<\/b><\/h4>\n
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Working With a Fiduciary Advisor<\/b><\/h4>\n