- Some Americans “save too much” for retirement and end up making sacrifices during their working years.
- Financial planners advise balancing savings and enjoying life to avoid regrets in retirement.
- This is part of an ongoing series about the regrets of older Americans.
Joshua Winston, 70, did a very good job prepare for retirement: He successfully managed two veterinary clinics, smart investmentsAnd lived frugally.
But a week after retiring in May, he was diagnosed with cancer. Now, says Winston, he regrets working such long hours throughout his career, often missing trips and date nights.
Winston is one of a few dozen respondents to an informal Business Insider survey who said worked too hard during their career or too focused on saving for retirement, sacrifice family timetrips or other leisure activities when they were younger. They are among more than 3,600 older Americans who have shared their the regrets of life via surveys or direct emails to journalists. This story is part of an ongoing series.
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Some survey respondents thought they were late retirement goals and chose to avoid larger purchases, only to realize they were well prepared and overly cautious before going through with it. A few spoke of traumatic experiences, such as death of a loved one or a disaster medical diagnosismade them anxious to save money in case of another emergency. Interviews with five Americans who thought they were too frugal point out the difficulties of knowing how to best prepare for retirement.
Dylan Tyson, president of retirement strategies at Prudential Financial, describes the mindset of an saver: “You are reduce lifespan – not taking that extra trip or going to that concert or soccer game with family and friends – because you’re worried you haven’t saved enough.
Saving for a disappointing retirement
Winston, who lives in Arizona, has spent much of his career in the veterinary field. All his life he drove modest vehicleslived in an upper-middle-class home and was hesitant to make larger purchases.
He retired with about $3 million, but would have liked to spend some of that money on an assistant for his practice so he wouldn’t have to work nights manning an emergency veterinary helpline.
Joshua Winston said he missed out on some recreational opportunities because of his work schedule. Joshua Winston
“It took a lot of oxygen out of my life. I could never watch a movie when I was out with my wife because I would get a dozen phone calls,” Winston said, while acknowledging that the service Telephone assistance had contributed to the success of his practice.
He planned to spend part of his savings on retirementbut he was diagnosed with lung cancer in May and said his life has been “hell” since then.
“I have enough money to live to be 95 and go on vacation. I have a whole life ahead of me, and this is what’s happening,” Winston said. “I have cancer and I may not even appreciate the money I worked hard to save.”
Tyson said that although many retirement is “guesswork”, people should try to determine how much lifetime income they will need to achieve their retirement goals while balancing their spending needs, wants and wishes.
“As millions of Americans face uncertainty, we’re seeing the smartest among them take action to create financial plans that focus squarely on the things that matter most,” Tyson said. “Then they protect those goals by ensuring they have secure, predictable income to fund their retirement needs and wants, allowing them to worry less and achieve their greatest wishes.”
Working too hard and missing friends and family
Ruth Mills, 63, said she I started saving later in life, but has amassed seven figures through frugal living and prudent investing. The Minnesota resident had children in her early 20s and her finances were tight. Inasmuch as single momshe worked multiple jobs, doing odd jobs as a part-time in-home personal care assistant in addition to her full-time job. She rose through the ranks to become the state’s principal accountant.
She said that because she worked a lot and looked after her children alone, she missed opportunities to go out with them. friends or travel more with family. She said part of her wishes she had given up some savings so she could work one less job or have hobbies.
Ruth Mills said she often missed dinners with friends while raising her children. Ruth Mills
“I did a good job of saving for retirement, but so much so that I was too frugal along the way and didn’t enjoy my youth as much because I worked too much,” said Mills.
Mills said she postponed a trip to Ireland for which she was no longer physically equipped. She recently reduced his home and hopes to retire soon and use his retirement years to spoil his grandchildren and lead an active life.
“Having all the money in the world is nice, and I don’t have it, but if you don’t have friends and people to spend it with in the end, it’s a trade-off,” Mills said. She added: “Having made the necessary sacrifices to save and invest earlier, I look forward to having the financial security to be able to afford basic necessities and share adventures and experiences with my grandchildren.”
Ryan Viktorin, a financial consultant and CFP at Fidelity, said she distinguishes three categories of “excessive savers”: people who experience an unfortunate event that prevents them from spending the money they have saved, people who fear never having enough because of health costs or market volatility, and people who continue to work because they haven’t mentally prepared for retirement, fearing it will be monotonous or isolating.
She also said retiring baby boomers grew up hearing stories about their parents or grandparents going through the Great Depression.
“Sometimes I hear my clients who have saved very well say that it’s in their bones to continue to be frugal, and they feel like they can’t really enjoy themselves or live their lives because they need to continue saving,” she said.
Missing key family moments
Kirk, 75, said he didn’t realize he was doing such a good job preparing for retirement. The retired California attorney, who asked to use only his first name for privacy reasons, worked for various financial institutions and maxed out his 401(k). He has amassed more than $1.1 million in tax-deferred retirement savings. However, he feared that an emergency or a stock market crash would derail his plans for comfortable retirement.
After retiring from his full-time job at age 67, he realized he had missed out on some opportunities because he had limited his spending. He regrets not having taken a week-long trip to France with his sixty-year-old brother; Today, his brother has cognitive problems that make getting around difficult. On a trip to Hawaii, he signed his two children up for a helicopter tour, but didn’t go himself to save money.
“It would have been a great experience to share with them and talk about it for years to come,” Kirk said. “I could now pay for a dozen helicopter flights without losing money.”
Viktorin said it’s important to look at the gap between spending and income and determine where there is some wiggle room in your budget beyond saving for retirement, which could help to alleviate some of these anxieties among older Americans.
“When you make a financial plan, you can make assumptions and see what it looks like,” Viktorin said. “What if we took an extra trip and spent more money? What if we flew business class instead of coach or economy class? What if we started helping our children more?”
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