Retirement Retirement Planning

The 401(k) Decision People in Their 40s Regret the Most

Make sure you're not making the same mistake.

By Catherine Collins

Edited by Laura Hohenstein

Updated March 10, 2026

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When you turn 40, suddenly your retirement years feel closer than before. For many people, that's an exciting prospect. For others, it can bring on some anxiety. Fortunately, when you're in your 40s, you still have time to contribute more to your 401(k) retirement plan and optimize it for your golden years.

Below is the 401(k) decision people in their 40s regret the most, along with some other common regrets people have once they reach mid-career. Hopefully, reading these can help younger workers better prepare for their retirement years and take advantage of their 401(k) benefits sooner.

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The biggest 401(k) regret 40-year-olds have

It seems obvious, but it's still significant that the biggest regret those in their 40s have is not saving enough in their 401(k)s. By the time employees are in their 40s, they have reached a career high. They are experienced enough to do their jobs well and still young enough to advance and learn more. However, many people this age also start thinking more about retirement to make sure they're prepared. Many of them wish they'd started saving earlier when they were in their 20s.

Unfortunately, this is common. The Protected Retirement survey from the Nationwide Retirement Institute® found that 28% of workers aged 45 believe they'll have to delay their retirement because they didn't invest enough.

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Not taking advantage of their employer's match

Another regret people in their 40s have is not taking advantage of their employer's match. Sometimes, employees leave jobs before they're fully vested, or they don't understand how much they have to contribute to receive a match. However, employer matches are essentially free money that workers can get towards their retirement accounts, so it's worthwhile to take the time to review your employer's matching policies.

Making fear-based 401(k) decisions

People in their 40s have been through significant moments of economic uncertainty. There have been recessions, market crashes, and a global pandemic. However, some people in their 40s regret making fear-based decisions when the economy feels uncertain. The stock market goes in cycles and waves, so it's impossible for it to show positive returns every single day. A study by Charles Schwab showed that nearly 25% of people with 401(k) accounts changed their investments because of inflation or market fluctuations.

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Not increasing contributions over time

Some employers offer automatic contribution increases, while others don't. Many people in their 40s regret not increasing their contributions over time. Even increasing contributions by 1% each year can go a long way in increasing your retirement nest egg. According to Vanguard's How America Saves report, only 14% of employees maxed out their 401(k) accounts in 2024.

Not learning how to manage money

Another skill many people in their 40s regret is not learning how to manage money sooner. When you're young, it seems like you have all the time in the world to save and invest for retirement. However, many people get to age 40 and wish they had a larger savings account and a bigger investment balance. Learning how to budget is a skill that takes time to master, but it's absolutely possible to learn.

Taking out 401(k) loan

According to Trans America Institute data, 31% of people have taken out a 401(k) learn. Usually, people do this when they're experiencing some type of financial hardship, as it's preferable over going into credit card debt. However, when you take money out of your 401(k) in the form of a loan, you reduce the amount of money in your retirement account that's compounding and growing. So, many people regret doing this.

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Where to get 401(k) help

No one is born knowing how to manage a 401(k). Unlike previous generations who benefitted from having pensions, employees are the ones responsible for managing their 401(k) accounts. For that reason, it makes sense that occasionally, people will have questions about how to manage the account, what types of fees they're paying, and how much they should have invested by a certain age. Working with a financial advisor and an accountant can help you find out if you're on the right track for retirement. Your Human Resources department at work can answer specific questions about your workplace's retirement plan and policies.

Bottom line

Many people in their 40s are hoping to have a stress-free retirement one day. However, many of them are worried that they didn't start saving early enough and don't have enough in their 401(k) account. Fortunately, people in their 40(s) still have about 20 years of work in front of them, which is enough time to adjust retirement contributions and catch up if they feel behind.

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