These two simple habits will ensure you’re happier in retirement

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

Guardian life Insurance’s 14th Annual Workplace Benefits Study for 2025 shows that the top two regrets in retirement for Americans are not saving enough and starting saving early. These regrets don’t just affect bank accounts; They also negatively impact emotional health, life satisfaction and freedom in retirement.

Retirees who regretted their financial preparations were three times more likely to report lower emotional well-being than those who did not. The takeaway from this is clear: A great deal of happiness in retirement comes from saving more and starting saving long before retirement begins.

Start saving early: compound advantage

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

Compound interest rewards those who invest for long periods of time. The earlier you start saving and investing, the more time your money has to accumulate and grow. A 25-year-old who invests $200 a month in a retirement account earning 6% annually will have about $400,000 by the time he or she is 65. If the same person started at age 35, they would receive about half that amount. If someone started at age 45, they would have $93,000.

This extra time becomes even more important when you consider that many people are retiring sooner than expected. The Guardian found that 70% of retirees left work earlier than planned due to something beyond their control, while a third said it was due to health problems or job loss. So you may not get those extra years you assumed you would save.

The Fed’s report “The Economic Well-Being of U.S. Households in 2024” echoed this sentiment, with only 35% of non-retired adults seeing their retirement savings plan on track. People already feel behind, and the longer they wait, the harder it is to catch up.

Starting early is not about perfection or big contributions; It’s about momentum. Even small automatic deposits into a 401(k) or IRA add up over time. And if your employer offers an employer match, providing at least the amount required for the match makes a big difference since it’s essentially free money.

Moreover, the power lies not only in the growth of your account value, but in the habit of saving. Each contribution makes the next easier. People who start saving early don’t regret it; Those who don’t, almost always do.

Save more: Small increases make a big difference

Another retirement regret is not saving enough money. This is an increasingly common issue as life expectancy rises and fewer people receive traditional pensions. The US Census Bureau estimates that life expectancy in 2060 will be about 86 years.

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

With longer life expectancy comes higher health care costs. The Guardian reports that 65-year-olds who will retire in 2025 can expect to pay $172,000 on health care in retirement, with the average retiree spending 30% of their Social Security income on health care. This doesn’t leave much room for living well, travel, helping family, or emergencies.

To avoid this, save more than you feel you can. Automatic escalation in retirement plans has been shown to dramatically 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 significant impact on your future income without diminishing your quality of life in the present.

Bottom line

Usually the two biggest regrets about retirement 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.