Three Costly Retirement Regrets in Your 70s and 80s - And How to Avoid Them
'Having a comprehensive plan is rarely something anyone regrets,' one financial expert emphasised, highlighting the critical importance of proactive retirement preparation. For many individuals entering their later years, certain financial decisions—or the lack thereof—can lead to significant regrets that impact their golden years.
Instead of enjoying time with grandchildren or pursuing long-held travel dreams, retirees often find themselves navigating complex tax regulations and exploring income possibilities to bridge financial gaps created decades earlier. The Independent consulted multiple financial professionals to identify the most common regrets among those in their 70s and 80s and provide practical solutions to avoid these pitfalls.
Failing to Plan for Incapacitation
While retirees typically consider the financial implications of death, many overlook what happens if they become too ill to make decisions themselves. Attorney Lisa McCurdy, CEO of estate and asset protection law firm The Wealth Counselor, explained that when individuals lose agency due to illness or accident, regret becomes profound.
'When no one has been legally appointed to make financial or health care decisions on your behalf, and you lose cognitive ability or become incapacitated, your family is left scrambling,' McCurdy told The Independent. 'That regret is profound, and it's entirely preventable.'
To prevent this situation, those approaching or already in retirement should establish two crucial legal documents:
- A durable power of attorney for finances, which allows you to designate a trusted person to manage your financial affairs if you become incapacitated
- A healthcare power of attorney or advance medical directive, which enables you to choose someone to make medical decisions regarding procedures, medications, and long-term care funding
'Doing this while you have full capacity means you choose the decision-makers, not a courtroom during a crisis,' McCurdy emphasised.
Insufficient Retirement Savings
According to a Clever Real Estate survey, while the average retiree believes they need over $800,000 to retire comfortably, they typically only have approximately $290,000 saved. This substantial disparity represents one of the most common regrets certified financial planner Shelby Rothman encounters among her clients.
'Clients often regret not saving enough money for retirement and focusing on short-term goals, like buying a house or starting a family, early in their lives,' Rothman, owner of wealth management firm EnJoy Financial, explained. 'Retirement sneaks up on them and they don't have enough income for retirement.'
The situation becomes particularly challenging for those in their 70s and 80s who recognise the shortfall, as there's insufficient time for compound interest to significantly grow any new savings contributions.
'It's not just missing out on the dollars they should have saved, but on the money that money should have made over time, like a negative snowball effect,' Rothman noted.
To avoid this regret, Rothman recommends:
- Remembering that Social Security should supplement retirement funds, not serve as the sole income source
- Saving as much as possible when young, particularly by contributing enough to employer-matched 401(k) plans to receive the full match
- Maintaining consistent savings habits, as longer investment periods provide greater growth opportunities
Delaying Professional Financial Guidance
Many retirees postpone hiring financial planners or advisers until years after they should have, leading to significant regrets during retirement, according to Virginia-based financial adviser Jeffrey B. Smith, owner of retirement planning firm The Retirement Smith.
'After going through a thorough planning process, I frequently hear, "I wish I had done this years ago,"' Smith revealed. 'The clarity, structure and long-term strategy provide confidence that many retirees realize they lacked for decades.'
Avoiding this regret requires overcoming the common misconception that financial planning is exclusively for wealthy individuals due to perceived high costs. Smith compares the situation to hiring a personal trainer—people often don't recognise the value until specific triggers occur, such as approaching retirement, market downturns, or major life events.
'Most individuals spend decades working without truly knowing whether they are on track or if the decisions they've made will sustain them once the paycheck stops,' Smith observed.
Ultimately, comprehensive retirement planning—including legal preparations for incapacitation, consistent savings strategies, and timely professional guidance—can help individuals avoid these common regrets and enjoy their later years with greater financial security and peace of mind.
