Depending on how you’ve lived your life, you may end up with serious regrets in your senior years, particularly financial ones.
That’s what happened to several retirees who spoke on video to Business Insider, reading letters to their younger selves — and offering advice to help others avoid the same fate.
As one of them said: “It’s way better to plan something ahead of time than wait until the end like we have.”
Here are three key takeaways from their experience.
As one couple shared, retiring with debt can lead to long-term financial stress — especially if your fixed income barely covers monthly interest charges.
“I missed one payment on the credit card, and it just ballooned,” one former farmer said. “Within six months, it completely doubled.”
His wife added that the situation snowballed as they went thousands of dollars into credit card debt to pay their bills.
“Our credit scores are in the tank,” she said.
They’re not alone. AARP says 53% of households 75-and-over had debt in 2022, compared with just 32% in 1992.
Meanwhile, Americans of all ages are struggling with debt. According to the Federal Reserve, credit card debt soared to $1.17 trillion in 2024. Total household debt, including mortgages, reached $17.94 trillion.
Don’t let debt derail your retirement dreams and leave you struggling to cover things like critical health bills. Avoid debt by keeping fixed expenses affordable and setting up an emergency fund to prepare for emergency expenses.
The Federal Reserve reports that 28% of working adults have no retirement savings at all. One man in the Business Insider video who had no retirement savings encourages younger workers to put the maximum into their 401(k) or IRA match.
“That money grows over time,” he said.
Even those who are socking money away for retirement could be doing better. According to the Federal Reserve, only 31% of non-retirees with retirement savings believe they’re on track, down from 40% in 2021.
One retired librarian in the video regrets not setting up a Roth IRA till she was 54.
“I put $6,000 in it and let it sit there,” she said. “A financial adviser explained to me that I had to invest it. Now it is over $41,000. Just imagine if I knew how to do that when I was 25 instead of 55.”
The message these seniors share is clear: Start saving today, even if it’s just a little. One of them suggests putting $20 a week away to get compound growth working for you.
It’s that growth that helped the librarian’s $6,000 swell to $41,000, and it can help your wealth grow even more if you start younger than she did and invest up to 20% of your earnings.
All the seniors in the video advise younger people to keep working and not retire early — to ensure their savings can grow. Many of the featured seniors have ended up going back to work or seeking jobs to keep paying their bills.
Read more: Are you rich enough to join the top 1%? Here’s the net worth you need to rank among America’s wealthiest — plus 2 ways to build that first-class portfolio
One older woman in the video withdrew her entire 401(k) to put a $110,000 down payment on her home.
She learned the hard way that such a lump-sum withdrawal is taxed at 45%, meaning she blew her savings and has to work to pay bills.
“If I were to leave my money alone, not move it around, it would be worth a lot more today,” she said.
To avoid this situation, establish a safe withdrawal rate for your 401(k). Experts used to recommend a 4% withdrawal rate, but due to longer lifespans and less optimistic projected returns, the financial services firm Morningstar now recommends a more conservative 3.7% withdrawal rate.
Steer clear of debt, prioritize savings, and be ready to use your retirement funds responsibly so you can have the secure future every senior deserves.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.