Baby Boomers Have Some Harsh Retirement Advice for Their Younger Selves

Anyone who has lived a long life has at least a few regrets. And for millions of baby boomers, some of that remorse centers on how they planned and saved for retirement.

Recently, the Nationwide Retirement Institute surveyed 1,000 U.S. consumers between the ages of 60 and 65 — including both retirees and pre-retirees — and asked them what advice they would give their younger selves about retirement planning.

Here are the top retirement planning tips that baby boomers wish they had heeded, starting with the harsh and unexpected advice and ending with the tried-and-true tips. Learning about these regrets can help younger savers avoid repeating the same mistakes.

Don’t assume you’ll be able to work as long as you want

Respondents who said they would give this retirement planning advice to their younger selves: 18%

Millions of Americans plan to work well into their senior years. But it’s wrong to assume such plans will automatically come to fruition.

About 40% of U.S. adults age 65 and older — more than 60 million Americans — have a disability, according to the Centers for Disease Control and Prevention. Such health issues, and others, might prevent you from remaining on the job as long as you want.

In addition, age discrimination — although technically illegal — keeps millions of older folks from finding work.

You need more money than you think you do

Respondents who said they would give this retirement planning advice to their younger selves: 23%

One of the biggest challenges in retirement planning is deciding when you have enough cash saved to walk away from work.

If the experience of these baby boomers is any indication, odds are good that whatever dollar amount you settle on, it won’t be enough.

If you find that insight sobering, consider sitting down with a financial advisor who has a fiduciary duty to put you first.

Always max out contributions to your retirement plan

Respondents who said they would give this retirement planning advice to their younger selves: 23%

This expert advice is always the same: Stuff as much money into your retirement account as you reasonably can. Unfortunately, very few people follow that plea.

In 2022, just 15% of participants in Vanguard retirement plans contributed the maximum amount to their 401(k) plan, for example.

In some cases, workers don’t have the extra cash to make such contributions. But other workers simply choose to spend money on other things.

Whatever the reason for not contributing more to your retirement plan, baby boomers are sounding the alarm that you are likely to regret your decision.

Create a budget and stick to it

Respondents who said they would give this retirement planning advice to their younger selves: 24%

Creating a budget can be a great way to both rein in your spending and track your financial progress.

In fact, 53% of Americans say learning to craft a budget and track expenses is the most important financial lesson they have ever learned, according to a 2023 survey.

And yet, millions of people are too intimidated to begin the process of budgeting. Fortunately, Money Talks News’ partner YNAB (short for You Need a Budget), guides you through the process of making a budget — and helps you stick to it.

Don’t live above your means

Respondents who said they would give this retirement planning advice to their younger selves: 34%

History’s verdict is clear: Those who live below their means — and save and invest — grow rich over time. And yet many of us seem helpless to stop our bad habits of running up credit card debt and spending mindlessly on things we don’t really need.

Wealthy people are different. So, learn to be more like them by applying the lessons in “The 10 Commandments of Wealth and Happiness” to your own life.

Start planning early

Respondents who said they would give this retirement planning advice to their younger selves: 41%

Relatively few people think much about retirement planning before the age of 40. And some don’t get serious even at that point.

Boomers are no exception to that rule, but many of them appear to now regret their procrastination.

On average, today’s retirees say they started planning for retirement at age 42. But nearly half wish they had begun at age 30, on average.

Start saving early

Respondents who said they would give this retirement planning advice to their younger selves: 63%

The earlier you begin to save for retirement, the better. In fact, the value of getting a head start is enormous, thanks to the power of compounding. As we have noted:

“To get the most benefit from compounding, you must start saving as early as possible. The younger you are when you start saving, the richer you are likely to get.”

For more, check out the “10 Guaranteed Ways to Retire Rich.”