Recent Retirees Share Top Savings Regrets

Retirement planning decisions often become clearer with hindsight. A recent survey of retirees reveals that many would approach saving and income planning differently if given another opportunity. While most participants accumulated meaningful assets, their primary concerns centered on how those assets were used to support spending in retirement.

Starting Earlier Still Matters

One of the most frequently cited regrets was delaying retirement contributions during peak earning years. Even modest early contributions can benefit from compounding, while late starts often require higher withdrawal rates later. Retirees who began saving earlier reported greater flexibility in managing spending and less reliance on market performance.

From Accumulation to Income

Another key theme was the transition from saving to spending. Many retirees focused heavily on growing account balances but did not establish a structured withdrawal plan. Without a defined income framework, withdrawals were often reactive, increasing the risk of overspending during strong markets and underspending during downturns.

Healthcare and Longevity Planning

Healthcare costs emerged as a significant variable. Retirees who had not earmarked funds for medical expenses were more likely to reduce discretionary spending unexpectedly. Planning for longevity and healthcare helped maintain stability in spending patterns and reduced anxiety about future costs.

Confidence and Income Structure

Retirees who reported higher confidence shared several common characteristics. They typically had multiple income sources, such as Social Security combined with other predictable payments, and aligned those income streams with essential expenses.

Higher Confidence Retirees	Lower Confidence Retirees
Defined income plan	Ad hoc withdrawals
Healthcare funding strategy	Reactive expense adjustments
Multiple income sources	Portfolio-only income
Spending aligned to essentials	Variable spending without framework

The Role of Withdrawal Strategy

Withdrawal sequencing plays a major role in long-term sustainability. Retirees without a strategy were more exposed to market volatility, particularly in the early years of retirement. Structured withdrawals helped maintain consistency and reduced the likelihood of large adjustments during market declines.

Behavioral Factors

The survey also highlighted behavioral influences. Some retirees were hesitant to spend even when they had sufficient assets, while others withdrew aggressively during strong markets. A defined spending plan provided guardrails that helped balance confidence and sustainability.

Planning Implications

The findings reinforce that retirement readiness extends beyond asset accumulation. Translating savings into dependable income, planning for healthcare, and aligning spending with essential needs can improve long-term outcomes. A framework that emphasizes income stability rather than portfolio value alone may reduce financial stress and support more consistent decision-making.

Planning Focus	Potential Outcome
Income aligned to essential expenses	Greater spending stability
Healthcare cost preparation	Reduced unexpected withdrawals
Structured withdrawal sequencing	Lower volatility impact
Multiple income sources	Improved confidence

Conclusion

Many retirees report that their greatest lesson is not about how much they saved, but how they structured their income. Establishing a plan that prioritizes dependable cash flow, healthcare preparedness, and disciplined withdrawals can help support both financial sustainability and confidence throughout retirement.

Source: Nationwide Retirement Institute. Read the original release.