5 Regrets Retirees Wish They Had Spent Money On
Tim shares 5 things retirees wish they spent more money on during retirement. He emphasizes making the most of retirement instead of running up the score.
“Twenty years from now you will be more disappointed by the things you did not do than by the ones you did do. So, throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sales. Explore. Dream. Discover.” Mark Twain
That’s my intro for today’s topic: What are the top 5 things retirees wish they spent more money on?
As you know, we all hope retirement is a time to enjoy the fruits of your labor. And if it isn’t, it should be. Often, retirees look back and wish they'd allocated more funds to certain areas or activities.
Today, I’m going to give you a rundown of the latest top five expenses retirees regret not spending more money on.
1. Health and Wellness
As you’ve heard me say before, health is vital for a solid life and certainly great retirement. Physical and mental wellbeing is just as important as financial health when you move into retirement.
Many retirees wish they would have spent more on preventive care, fitness programs, and nutritious diets to maintain their well-being. Retirees tend to focus on the financial aspect of retirement instead of putting forth the efforts to not spend that money in the future on healthcare.
All the money in the world doesn’t mean much if you don’t have the health to enjoy it.
Quick stat: ’A healthy 65-year-old who retired in 2023 will likely use almost 70% of their lifetime Social Security benefits to pay for premiums, critical services and out-of-pocket expenses that Medicare doesn’t cover. Yet only about half of Americans understand how much it will cost to cover healthcare in retirement.’
So, the healthier you are and with a bit luck on your side, you can keep these costs as low as possible.
2. Better Home Maintenance
The American Society on Aging (ASA) says homeownership is one of the biggest differentiators between retirees who thrive and those who just survive.
Of course, owning homes comes with stress and risk, but keeping it maintained well prevents a lot of extra costs that could come with a home that is not well kept. Keeping up with your home can make a huge difference in your asset value with what we have seen through the real estate world as well.
I do want to note, if you are in or near retirement and do not own a home, then it would be wise not to worry about owning one as an asset or a place to build wealth. You should just simply look at it as another monthly expense as opposed to a place to build wealth now that you have moved past the ‘accumulation phase’ of your life.
3. Help Adult Children Reach Important Milestones
Many parents feel that if they have the money and they help their children, their children will not learn from the experience and evolve from having to figure a way out of that situation.
It turns out that later in life, a lot of parents regret not having helped their children more when they could have. This is typically with the larger milestones, like getting married or purchasing a home or car. You could think of it as financial wellbeing, like a torch passed down from generation to generation, helping secure their child’s needs to move forward into the next stages of life.
Fortunately, many of my clients have enough money to live a decent retirement and have enough excess to assist their children. And this is behavior I encourage if they are so inclined.
4. Help Grandchildren with School
Whether grandparents open tax-advantaged 529 college savings plans or just help grandchildren fund as they go, helping them afford the high costs of higher education can help avoid being saddled with student debt for years or even decades after graduation.
If you choose to start this early, it can be an added bonus and help save on taxes in the long run. Every little bit helps here.
5. Travel and Experiences
Most retirees look back and see they spent their life living to save, instead of saving to live. It is a good idea to have a nest egg set aside, but if you truly want to enjoy life – there isn’t enough money in the world to make up for lost experiences. Create those memory dividends.
In the end, unfortunately, not everyone is able to do all of these things that retirees regret not spending money on. However, if you have the means, these are some of the big items to think about.
Life is short. Go live. Don’t try to ‘run up the score’ without really considering what you’ve saved for in the first place. It wasn’t so you could be buried with piles of money.
So, again - throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.
A CERTIFIED financial planner™ professional can help you plan for your retirement. Schedule a call today so we can talk about your situation.