Most Americans wish they had started saving for retirement sooner and regret withdrawing money early from their retirement accounts, according to a recent study by Censuswide, commissioned by Human Interest. The report surveyed 1,041 full-time, non-self-employed American workers. It found that 41% of Americans expect to retire later than planned due to financial circumstances.
83% plan to continue working after retirement. Starting too late was a common issue, with 68% of respondents wishing they had begun saving earlier. 19% didn’t start saving until they were age 41 or older.
37% of respondents reported removing money from their retirement accounts. 17% took a loan against their 401(k) and 23% withdrew money early. Eddy Jurgielewicz, partner and financial planner at Upbeat Wealth in New Orleans, acknowledges the challenge young professionals face in seeing “retirement” as a distant concept.
“When it’s unclear what the next 12 months will bring, the thought of saving for something 30 years away can feel far-fetched,” he said. Those early in their careers often face competing financial priorities such as student loans and emergency funds. Carman Kubanda, a financial planner with Innovative Wealth Building in California, Maryland, notes that clients often prioritize current wants over future needs.
They sometimes pay for children’s college expenses before ensuring their own retirement security. For some, cultural factors and behavioral biases also complicate saving efforts. Uziel Gomez, founder of Primeros Financial in Los Angeles, said many Gen Z clients prioritize immediate gratification over long-term savings.
First-generation Americans might struggle with unfamiliar retirement vehicles.
Regretting delayed retirement contributions
However, experts agree that it’s never too late to start.
Anna Sergunina, president and CEO at MainStreet Financial Planning in Los Gatos, California, encourages combating present bias—a tendency to prioritize immediate needs. She stresses the importance of starting to save, regardless of age. Marc Fowler, director of retirement education at Human Interest, emphasizes utilizing catch-up contributions.
This allows annual contributions up to $7,500 starting at age 50. Financial education plays a significant role in empowering individuals to make informed retirement planning decisions. The survey highlighted that when employers provide general financial wellness education, 91% of employees enroll in their company-sponsored plans.
Without such education, the enrollment rate drops to 76%. Education and encouragement from employers can make a substantial impact. John R.
Power, a CFP with Power Plans in Walpole, Massachusetts, points out the value of employers offering at least the maximum match for retirement contributions. He also notes the benefits of automatic enrollment with an opt-out provision. Employers can significantly influence their employees’ retirement readiness by offering comprehensive financial planning services.
Providing education about the benefits of early and consistent saving is also valuable. In an era of increasingly robust employee benefits, providing resources for financial planning can be invaluable. The key takeaway: Start saving as soon as possible, make use of available employer resources, and seek professional financial advice to navigate the complexities of retirement planning.
