Financial Regrets Haunt Americans Approaching Retirement
As millions of Americans face retirement, a sense of unease settles in. Will they be financially prepared, or will they be forced to work indefinitely? The anxiety is palpable, and for good reason. In a recent survey, nearly 1,200 Americans shared their financial regrets, painting a stark picture of uncertainty.
Retirement Planning: A Black Box
Many baby boomers confess that they lack knowledge about investing, leading to costly mistakes. Some regret not hiring a financial advisor, while others lament expensive purchases or taking Social Security too early. Then there are those who suffered unexpected setbacks, such as illness, job loss, or divorce, and wish they had been better prepared for emergencies.
Gary Lee Hayes: A Lesson in Savings and Investments
Gary Lee Hayes, 70, is one such individual. He wishes he had been more disciplined with his savings and investments. With little financial literacy growing up, Hayes didn’t focus on building a lucrative career. His regrets include not investing in Verizon stock early on and not saving at least 10% of his income each month. Today, he receives $1,846 a month in Social Security and lives in government-subsidized housing.
Nancy Seeger: Investing Mistakes and Long-Term Consequences
Nancy Seeger, 64, is another example. She made investing mistakes that had long-term repercussions on her finances. Despite having two master’s degrees, Seeger was laid off from her $74,000-a-year job and is still looking for work. She wishes she had saved more when her children were young and started retirement funds earlier. Seeger’s story highlights the importance of planning ahead, especially for those nearing retirement.
The Importance of Starting Early
Research suggests that people tend to wait too long to start saving. On average, boomers waited until age 35 to start saving, according to surveys from Transamerica Institute and Charles Schwab. This delay can result in significant losses, with some missing out on as much as $300,000 throughout their careers.
PJ White: A Cautionary Tale of Financial Struggle
PJ White, 69, never expected to be homeless. Despite working various jobs, she struggled to save and invest. Her peak income was about $41,000, and she rarely put money into her 401(k). Today, she lives on about $1,500 in Social Security each month and fights to get her house back after losing it due to unpaid property taxes.
Planning for the Unexpected
As Americans approach retirement, they must confront the unknown. Cancer rates are rising, and diagnoses are coming earlier in life. Long-term care can cause financial strain and burden loved ones. Investors must prepare for these unexpected events, whether through self-insurance or long-term-care insurance.
A Call to Action
If you’re an older American with financial regrets, we want to hear from you. Share your story with us, and together, we can learn from each other’s mistakes and successes.
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