Five Retirement Mistakes Many Retirees Wish They Had Avoided

One of the smartest ways to get ready for retirement is to learn from people who have already gone through it. A recent TIAA Institute report found that many retirees now wish they had handled their money differently long before leaving the workforce. Their biggest regrets provide useful guidance for workers who still have time to adjust course.

Here are the most common regrets among current retirees, along with what to do instead.

1. Delaying Saving Too Long

The most common regret is waiting too long to begin saving for retirement, cited by 76% of retirees.

“Delaying savings is costly primarily because of the power of compounding,” said Surya Kolluri, head of the TIAA Institute. “The earlier money is invested, the more time it has to grow.

“A dollar saved at 25 is worth more at retirement than a dollar saved at 45, even though contributions are identical. Early saving also builds the habit of living below one's means, which can pay dividends throughout a career.”

If possible, workers should start saving as soon as they have earned income, ideally in their first job.

“Even small contributions in one's 20s can outperform much larger contributions made later due to the power of compounding over decades,” Kolluri said. “Those who begin early also have more flexibility to weather career gaps or market downturns without dramatically altering their retirement timeline.”

2. Not Putting Away Enough

The second-biggest regret is not saving enough, mentioned by 71% of retirees. Because retirement needs differ from one person to another, Kolluri recommends working with a financial professional to figure out an appropriate savings target.

“A financial advisor can help model specific retirement income needs based on expected expenses, lifestyle goals and longevity assumptions,” he said. “Retirement calculators and planning tools can also help identify gaps between current trajectory and retirement goals.”

For people who feel behind, Kolluri says there is still time to make progress.

“Although our research found retirees have regrets about not saving enough and not saving sooner, it is never too late to start planning for your future and harnessing the power of compounding,” he said.

“Talk to a financial advisor about your current retirement savings trajectory and goals, and where you might be able to invest or cut back to get closer to those goals.”

To reduce the risk of outliving savings, Kolluri said retirees may also want to think about sources of guaranteed retirement income.

“A guaranteed income source like an annuity will provide income for as long as you live, helping eliminate the ‘what if’ of whether or not you’re saving enough,” he said.

3. Underestimating Major Life Events

Nearly half of retirees, or 49%, said they regret underestimating the effect of major life events. Health setbacks, job loss, divorce or caregiving responsibilities can derail even carefully planned retirement goals, which is why emergency savings and backup planning matter.

4. Misjudging Healthcare and Long-Term Care Costs

Likewise, 49% of retirees said they underestimated healthcare and long-term care costs. Since these expenses often rise with age and can put heavy pressure on retirement savings, they should be built into long-term plans as early as possible.

5. Lacking a Clear Retirement Plan

The fifth-most-common regret is not having a clear retirement plan with specific goals, cited by 47% of retirees.

“A robust retirement plan starts with one foundational question: Where will your income come from when you stop working?” Kolluri said.

“A strong plan should identify all expected income sources: Social Security, retirement accounts and crucially, a guaranteed income component that covers essential expenses no matter how long you live or how markets perform.”

Beyond income sources, a solid plan should include a target retirement age, a healthcare and long-term care strategy, a drawdown plan for retirement assets and contingency planning for life events such as career gaps or unexpected health costs.

“Most importantly, a retirement plan shouldn't live in your head,” Kolluri said. “It should be documented, specific and revisited regularly. Working with a financial advisor to build and maintain that plan is one of the most impactful steps anyone can take toward a retirement they can actually count on.”