Retirement Retirement Planning

The 401(k) Decision People in Their 60s and 70s Regret the Most

Everyone else can learn from it.

By Catherine Collins

Edited by Kristy DeSmit

Updated March 4, 2026

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Many people think that managing a 401(k) retirement plan stops once they retire. However, retirees still need to stay up to date on 401(k) policy changes, keep an eye on fees, and create a tax-efficient withdrawal strategy.

This type of planning can be overwhelming, and that's why many people in their 60s and 70s have regrets about their 401(k)s. In fact, below is the 401(k) decision they regret the most. Hopefully, learning about what retirees regret can help younger workers plan better for their own retirement futures.

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The top 401(k) regret

It might not come as a surprise that the top regret people in their 60s and 70s have about their retirement accounts is not saving early enough. In fact, more than one in five Americans regrets not saving for retirement earlier, according to a recent Bankrate survey.

Although it can be challenging to invest in a retirement account early in your career, the earlier you start, the better. Because of compound interest, even smaller investment amounts can yield big returns by the end of your career.

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Not taking advantage of catch-up contributions

Another regret many retirees have is not taking advantage of catch-up contributions. Workers who are over age 50 are allowed to contribute an extra $8,000 per year in addition to the $24,500 401(k) maximum.

People aged 60 to 63 can contribute even more. They are allowed to invest an extra $11,250. These catch-up contributions are designed to help those who are close to retirement, as much as possible, add to their accounts. Once you stop working, you can't contribute to a 401(k) anymore, so these catch-up contributions are essentially the last chance people have to prepare for retirement.

Not getting the full employer match

Around 65% of employers that offer 401(k)s also offer matching contributions. This is when an employer agrees to contribute money to your retirement account, but only if you first invest a specific amount.

Employer matching plans vary. Some match the first 2% of your investment, for example, while others may match up to 10%. Many retirees in their 60s and 70s wish they had taken advantage of their employer's matches, as they are essentially free money if you meet the qualifications.

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Not learning how to budget

Another skill that retirees wish they had learned is budgeting. Switching from a salaried job to a fixed income can be a challenging transition.

Additionally, inflation has increased the prices of many everyday items, from groceries to gas. Because of that, many retirees struggle to live within their means. In fact, recent data shows that one out of every eight retirees plans to return to work.

Not anticipating health care costs

Most people think that life in retirement will be less expensive. After all, many people pay off their mortgages by the time they retire. Theoretically, kids are grown and out of the house. Because of that, people believe they can live on less.

However, research shows that, on average, retirees will spend approximately $172,500 on health care costs starting at age 65. Expensive health care bills can easily derail budgets and drain emergency savings. Many retirees wish they had planned better to afford health care as they got older.

What these regrets can teach others

It's helpful that retirees in their 60s and 70s are willing to discuss their 401(k) regrets. Hearing the steps they wish they had taken can help younger workers better plan for their futures.

It can be challenging for employees, especially young ones, to navigate the complex financial decisions involved in setting up and growing a 401(k) retirement plan. These regrets show that workplaces need to make a stronger effort to ensure their employees are well-informed about their 401(k)s.

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Where to get 401(k) help

Retirement accounts are incredibly important, but they can also be confusing to manage. If you have a question about your 401(k), there is no shame in asking your human resources department for help.

If you're not sure whether or not you're on the right track for retirement, you can consult with a licensed financial planner. Additionally, working with an accountant can help ensure that you make the most tax-efficient choices not only now but in the future as well.

Bottom line

Sometimes people don't get the stress-free retirement that they were hoping for. That's because many people in their 60s and 70s have regrets.

The top regret people have is not investing early enough in their careers. Living on a fixed income can be a challenge for people in retirement and takes some adjustment. However, younger people can learn from their mistakes, take the time to understand their 401(k) plans, and work hard to invest as early as possible.

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