Deciding when to retire and start collecting Social Security is a complex process, often accompanied by unforeseen challenges, Business Insider reports.
A recent survey conducted by Business Insider gathered insights from over 1,600 Americans aged 48 to 90, highlighting regrets about retirement decisions. Common themes include retiring too early, claiming Social Security prematurely, and depleting savings faster than anticipated. Life events such as health crises and financial downturns compounded these issues, prompting many to reconsider their plans.
Kathleen Rudd, 74, shared her experience of retiring at 62 as an executive chef, only to realize that leaving her job early reduced her monthly Social Security benefits. The 2008 financial crisis also decimated her savings, leaving her with little financial cushion when health issues emerged.
“I never should have left that job,” Rudd reflected.
Similarly, Misty Miller, 65, retired at 58 with substantial savings but found her frugality waned. She purchased a costly home, leading to significant financial strain.
“I plan to stay working until they carry me out in a casket,” Miller said.
Sheacknowledging that returning to work was necessary to sustain her lifestyle.
David John, a senior strategic policy advisor at AARP, explained that many retirees either withdraw too much from their savings early or delay key financial decisions until it is too late, leading to difficulties later.
Another prevalent regret is taking Social Security benefits too soon. Sharon, 77, retired at 62, only to discover later that her monthly income was insufficient. A series of financial missteps and health issues forced her to return to work.
“If only someone had just said, ‘Do not take Social Security early,'” she lamented.
John noted that only a fraction of retirees enter retirement with a comprehensive financial plan, underscoring the importance of early planning.
Not all regrets were financial. Many respondents described how retirement left them feeling isolated or aimless. John explained that for some, work is a vital source of social interaction and identity. Without it, loneliness can set in.
On the other hand, some retirees embraced the opportunity to pursue personal growth. Cindy Kohli, 64, used her retirement to focus on herself after years of prioritizing others. She now engages in pro bono work and community activities, finding new meaning in her retirement years.
These stories offer valuable lessons:
- Plan Early and Thoroughly: Establish a financial plan well before retirement and seek professional advice to avoid common pitfalls.
- Consider Delaying Social Security: Waiting to claim benefits can provide a more substantial monthly income.
- Balance Saving and Spending: Avoid withdrawing savings too quickly while also ensuring you enjoy the fruits of your labor.
- Prepare for Life Beyond Work: Cultivate hobbies, passions, and social connections to ease the transition into retirement.
