Why Saving More and Starting Early Matter for Greater Happiness in Retirement

Ali Hussain

Tue, September 8, 2026 at 1:05 PM GMT+3 4 min read

The retirement regrets people wish they could undo often start decades earlier.
Credit: The Good Brigade / Getty Images

Key Takeaways

Starting to save for retirement early allows your money more time to grow through compounding interest.
Many retirees regret not saving enough, especially as longer lifespans and rising healthcare costs increase financial needs.
Small, consistent contributions to retirement accounts, including employer-matched savings, can significantly improve financial security.

Retirement has changed due to longer life spans, shrinking pensions, and rising health care costs. What was once a quiet chapter in one's life now demands a more complex phase of planning and preparation.

Guardian Life Insurance's "14th Annual Workplace Benefits" study reveals that the top two retirement regrets among Americans in 2025 were not saving enough and not starting to save earlier. These regrets don't just impact bank accounts; they also adversely affect emotional health, life satisfaction, and freedom in retirement.

Retirees who regretted their financial preparation were three times more likely to report low emotional well-being than those who didn't. The takeaway from this is clear: much of happiness in retirement comes from saving more and starting to save long before retirement starts.

Why Starting Earlier Can Change Your Retirement Outlook

Guardian's data shows that two in five workers and one in five retirees regret how they prepared financially. One of the best ways to avoid that regret is to start saving earlier.

Compounding interest rewards those who invest for long periods of time. The earlier you start saving and investing, the more time your money has to compound and grow. A 25-year-old who invests $200 a month in a retirement account that earns 6% annually will have about $400,000 by the time they're 65. If the same person started at 35, they'd have roughly half that. And if someone starts at 45, they'd have $93,000.

That extra time matters even more when you consider that many people retire sooner than expected. Guardian found that 70% of retirees left work earlier than planned due to something out of their control, with a third saying it was because of health issues or job loss. You may not get those extra years to save that you were expecting.

The Federal Reserve's "Economic Well-Being of U.S. Households in 2024" report echoed this sentiment, with just 35% of non-retired adults viewing their retirement savings plan as on track. People already feel behind, and the longer you wait, the harder it can be to catch up.

Starting early isn't about perfection or large contributions; it's about momentum. Even small, automatic deposits into a 401(k) or IRA can build to something substantial over time. And if your employer offers an employer match, saving at least the amount needed to secure the full match makes a big difference since it amounts to free money in your account.

Moreover, power isn't just in the growth of your account value—it's in the habit of saving. Every contribution makes the next one easier. The people who start saving early don't regret it; those who don't, almost always do.

Retirement Isn't Just About the Money

Many people focus on the financial side of retirement but fail to take into "purpose" into account. Having hobbies, connections, and a sense of fulfillment also matter in your non-working years.

Saving More Now Can Make Retirement Feel Less Tight

The other retirement regret is not saving enough. That's an increasingly common issue as life expectancy rises and fewer people have traditional pensions. The U.S. Census Bureau estimates that the average life expectancy in 2060 will be almost 86.

Combine that with the U.S. Bureau of Labor Statistics's finding that only 15% of private-sector workers have access to a traditional pension plan, and you'll understand how important personal savings (401(k)s, IRAs, brokerage accounts) now are as sources of retirement income.

With longer lifespans come higher healthcare costs, of course. Guardian reports that 65-year-olds retiring in 2025 can expect to pay $172,000 on healthcare in retirement, with the average retiree spending 30% of their Social Security income on healthcare. That may leave little for living well, traveling, helping family, or weathering emergencies.

Save More Than Feels Easy

To avoid this, save more than you feel you can. Automatic escalation in retirement plans has been shown to significantly improve long-term savings without reducing short-term lifestyle.

For example, increasing your savings rate by 1% each year may seem small, but it will have a large impact on your income in the future without reducing the quality of your life in the present.

The Bottom Line

The two biggest regrets about retirement usually are waiting too long to start saving and saving too little. Both are completely avoidable. Starting early and saving steadily can make a big difference over time, helping you feel more secure and less stressed about the future. A little discipline and consistency now can go a long way toward preventing "I wish I had" moments later on.

Read the original article on Investopedia