An older couple hike across a rise with mountains in the distance.
Are you thinking about retirement? Do you have a solid plan in place?
If you don’t, you might find the wisdom shared with 24-year-old Business Insider reporter Noah Sheidlower in his article, “What I learned from 200 retirees,” interesting.
After reading through 4,500 responses to a retirement survey and interviewing 200 retirees, the Gen Z writer learned a lot about what not to do while saving for retirement. While Scheidlower spoke to Americans specifically, it’s safe to say much of this could apply to Canadian retirees too.
Here are the biggest regrets these retirees mentioned, and what you can do now to avoid the same fate.
Saving for retirement during the early years of your working life is hard, especially if you don’t come from wealth. Paying off college loans on an entry-level salary might not allow you any extra money to put away — but the earlier you start investing, the more you benefit from compound interest.
Sheidlower spoke to 64-year-old Kevin Foster, who emphasized the importance of putting some money away as soon as you start earning, even if it’s just a few dollars.
“I told [my grandson], ‘I don’t care how much you put away, you’ve got to put something away.’”
According to a BMO survey, 76% of Canadians are worried they will not have enough money in retirement because of rising prices. Considering you need somewhere between seven and 13 times your annual income to retire comfortably, the sooner you start investing, the easier it will be to reach that milestone.
If you want to start investing for retirement now — but find it all a bit confusing —there are money management platforms out there that can help you stay on track.
Another retiree reflected on keeping money in low-yield accounts for too long:
“After one woman told me she was too safe with her investments, I took most of my money from savings accounts and decided to plow it into the market,” Sheidlower shared.
When time is on your side, the smartest investment strategy is often to focus on equities and avoid keeping much money beyond your emergency fund sitting in a savings account.
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Remember, just putting money inside a TFSA or RRSP doesn’t do anything if it’s not invested. That said, everyone’s tolerance for the emotional ups and downs that come with investing is different. If watching your investments rise and fall every day sounds like a nightmare, you’ll want to make sure your investment strategy is diversified to avoid panic selling when the market inevitably dips.
If you’re just getting started with investing, consider using an alternative investing platform to guide you in creating a diversified portfolio.
Sheidlower notes that “[Kevin] was forced to end his career at 58 after developing a debilitating autoimmune disease,” highlighting how quickly your financial situation can change.
He went from earning a low-six-figure salary as a chemical and wastewater lab engineer to taking home just US$3,000 a month on disability.
While Kevin managed fine thanks to his wife’s income and the US$700,000 he saved up prior to his diagnosis, many retirees do not have that much in the bank should tragedy strike early.
A Scotiabank survey found that 55% of Canadians had an emergency fund that could cover three months of living expenses in 2024. This is down from 64% in 2019.
The lesson? Ensure your emergency fund is large enough to handle any unfortunate surprises.
You can grow your emergency fund faster with a high-interest savings account so you don’t have to worry about being caught in a similar situation to Kevin.
Many retirees spoke of declining health and increased health care needs in retirement. Whether it’s a sudden, unexpected chronic illness like the one Kevin was diagnosed with or the natural aging process, health care costs inevitably rise with age.
This means it’s important to optimize your health insurance policies by considering the coverage available to you when you are no longer employed.
Many who only increased contributions to their retirement accounts later in life regretted not doing so earlier, losing out on valuable years of compound interest that would have dramatically changed their lifestyle in retirement.
“In my interviews, many people said they were too ambitious upon retiring and blew through their reserves too fast,” Sheidlower wrote.
Since inflation means retirement will be much more expensive in 30 years than it is today, future retirees don’t always realize just how much more their living expenses will eventually cost them. This can lead to overspending in retirement if you’re not careful.
Thus, it’s important to find ways to lower fixed costs for things like car and home insurance as soon as possible upon retirement.
On the other end of the spectrum, Sheidlower noted that some retirees “said they were too cautious and sacrificed their enjoyment.”
Retiring with a large nest egg in the bank is great, but if you live out your healthiest years too afraid to spend it, what was all that sacrifice even for? Too many retirees mentioned regrets around not spending the money they worked so hard for all their lives.
Books like Die With Zero can help you understand how to efficiently and safely spend well in retirement.
But if you’re not sure where to start, working with a financial advisor can help you map out an effective spending plan in retirement, so you live your golden years without remorse.
1. Business Insider: What I learned from 200 retirees by Noah Sheidlower (April 6, 2025)
2. BMO: BMO Retirement Survey: Over Three Quarters of Canadians Worry They Will Not Have Enough Retirement Savings Amid Inflation (Feb 12, 2025)
3. Scotiabank: Your quick guide to getting to setting up an emergency fund by the Advice+ team (Feb 24, 2025)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.