70% of retirees wish they had started saving for retirement earlier

The biggest piece of advice retired people would give their youngsters is simple: Start saving for the end of your career earlier.

About 70% of retirees said changing their habits to save or invest more and sooner is the best advice they would give to their youngsters, according to the Employee Benefit Research Institute’s Retirement Readiness Survey.

The report surveyed more than 1,100 Americans ages 55 and older with at least $50,000 in financial assets in April and May of this year.

“It’s something we hear all the time,” said Shweta Lawande, certified financial planner and senior advisor at Francis Financial, a New York-based firm.

Additionally, about half of respondents said they wish they had made some changes sooner to improve their current financial situation. This included being more aggressive with their investments, spending less, saving more, and working with a financial advisor to have a solid retirement plan.

The United States knows highest inflation in 40 yearswhich drives up the prices of almost all basic necessities for housing, food in restaurants and grocery stores, gasoline, cars and travel.

More than half of respondents cited inflation as the top financial concern keeping them up at night in retirement, according to the survey. This preceded other key issues such as health care expenses, medical bills and worrying about running out of money.

“A lot of retirees we spoke to didn’t expect the severity of inflation,” said Bridget Bearden, research and development strategist at the Employee Benefits Research Institute. “And it’s only gotten worse since.”

Starting to save and invest for retirement as soon as possible can mean you’ll be ready to stop working sooner. Have more time for money in the stock market to appreciate, and enjoy the benefits of compound growthcan be a great help in achieving financial goals.

“We cannot underestimate the power of time,” Lawande said.

It’s also worth looking to older investors, who have been through many market cycles, for discipline.

“Being able to apply context to investments is so powerful,” Lawande said, adding that younger clients are actually more likely to reach out during downturns worrying about how much money they have on the table. stock market.

“Don’t react to what you see in the market, don’t react out of fear, trust the ship you’ve built,” she said.

While the most common advice was to start earlier, there were also things retirees felt they had done well while preparing for retirement, and around 40% said they would ultimately make no changes to their retirement plans. preparation. About 14% said they were glad they saved, and 10% specifically noted saving in an employer-sponsored 401(k) or 403(b) retirement plan.

Additionally, retirees reported using an individual retirement plan, paying off debt, and buying, paying off, or selling a home as strong financial moves.

People who worked with financial advisors also generally felt more prepared for retirement and less stressed about finances – 90% said the value of professional advice outweighed any cost. It can also help younger customers tap into generational wealth.

“The advantage of perspective is not lost on us advisers,” Lawande said.

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