Revealed: The Biggest Retirement Regrets and How to Make Sure You Avoid Them

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Retirement is no longer a brief epilogue to a working life. With life expectancy continuing to rise, many people now spend 30 years or more in retirement. That’s potentially as long as an entire career. Yet despite this extended timeframe, many people reach retirement only to realise they should have planned more carefully.

The stakes have never been higher. Today’s retirees face a perfect storm of challenges: longer lifespans, rising healthcare costs, the shift from guaranteed pensions to personal savings, and economic uncertainty. The decisions you make today will shape decades of your future, and getting it wrong can mean years of financial stress, missed opportunities, and genuine regret.

But here’s the good news: we can learn from those who have gone before us. By understanding what current retirees wish they had done differently, we can avoid their mistakes and create the retirement we truly want.

 

What Do Retirees Actually Regret?

According to research from the Standard Life Centre for the Future of Retirement’s Retirement Voice 2025 study (October 2025), one in five retirees regret not planning more thoroughly for their retirement. The study surveyed 1,242 retired individuals, asking them what they wished they had known before retiring. The results reveal a consistent pattern of planning failures and financial miscalculations.

The top regret, cited by 21% of retirees, was wishing they had planned for their retirement more thoroughly. This finding is particularly striking because it encompasses the overall approach to retirement rather than any single decision. These retirees recognised too late that retirement requires careful, comprehensive planning, not just hoping things will work out.

The second and third most common responses also relate to finances and planning. 20% of retirees said they needed more money in retirement than they thought they would, while 19% discovered they would be retired for longer than they had anticipated. Both findings highlight a fundamental problem: people systematically underestimate their retirement needs.

 

The Pattern of Regret: Three Critical Lessons

Lesson 1: Planning is not optional. The fact that thorough planning tops the list of regrets should be a wake-up call. These aren’t people wishing they had taken more exotic holidays or pursued different hobbies. They’re saying they wish they had approached the entire retirement transition more systematically. What does “planning more thoroughly” actually mean? It involves calculating how much you’ll need, understanding all your income sources, accounting for inflation, considering healthcare costs, and having strategies for both the early active years and later stages of retirement. It means having a written plan, not just vague intentions.

Lesson 2: Underestimating costs is common and costly. The finding that 20% of retirees needed more money than expected reveals a dangerous tendency to underestimate retirement expenses. Many people assume their costs will drop dramatically in retirement, but this is often wishful thinking. While some expenses do decrease (commuting, work clothes, perhaps mortgage payments if you’ve paid off your home), others increase. Healthcare costs typically rise with age. You have more time for leisure activities, which cost money. Home maintenance doesn’t stop. Inflation continues to erode purchasing power year after year. Even more concerning, 16% of retirees regretted curbing their spending early in retirement when they were still fit and active, out of fear of running out of money. This highlights a tragic irony: some people save successfully but then can’t enjoy their retirement because they’re paralysed by financial anxiety.

Lesson 3: Longevity risk is real. Nearly one in five retirees (19%) discovered they would be retired longer than they thought. This ‘longevity risk’ is one of the most challenging aspects of retirement planning. Living longer is wonderful, but outliving your savings is not. Someone retiring at 65 today could easily live to 90 or beyond. That’s 25 years or more of retirement to fund. Yet many people plan as if they’ll only need money for 10 or 15 years. This miscalculation can have devastating consequences in later life, when earning capacity is gone and options are limited.

 

Other Significant Regrets

The research revealed several other important lessons:

Tax and pension optimisation (16%). Many retirees wished they had taken more advantage of the tax benefits of paying into a pension scheme. The power of tax relief on pension contributions is substantial, yet it’s often underutilised or discovered too late.

Financial understanding (13%). More than one in ten retirees wished they had better understood how to use their pension savings to provide retirement income. The accumulation phase (saving for retirement) gets most of the attention, but the decumulation phase (spending it wisely) is equally important.

Spending balance (12%). Some retirees regretted spending too much early in retirement, affecting their standard of living later. Finding the right spending rate is crucial but difficult without proper planning.

Income certainty (6%). A small but notable group wished more of their income had been guaranteed rather than exposed to investment fluctuations. Market volatility becomes much more stressful when you’re depending on your portfolio for living expenses.

 

Ten Essential Strategies to Avoid Retirement Regrets

Now that we understand what retirees wish they had done differently, let’s explore practical steps to ensure you don’t join their ranks.

 

1. Start Planning Early and Be Comprehensive

Don’t wait until a year before retirement to start planning. Begin in your 40s or even 30s. Create a written retirement plan that includes:

• Estimated retirement expenses (be realistic, not optimistic)
• All income sources (pensions, State Pension, investment income)
• A timeline for major life events
• Healthcare and long-term care considerations
• Estate planning goals

 

Review and update this plan annually. Life changes, markets fluctuate, and goals evolve.

 

2. Calculate Your Real Retirement Number

20% of retirees discovered they needed more money than expected. Don’t let this be you. Calculate your retirement needs based on actual expenses, not guesswork. Track your current spending for several months to understand your baseline. Then adjust for retirement:

• Subtract work-related expenses
• Add healthcare costs (these typically increase)
• Include leisure and travel (you’ll have more time)
• Factor in inflation (3% annually is a reasonable estimate)
• Plan for the unexpected (home repairs, family emergencies)

 

Many financial experts suggest you’ll need 70-80% of your pre-retirement income, but this varies widely based on your circumstances and goals.

 

3. Plan for Longevity

Don’t underestimate how long you might live. If you’re in reasonable health at 65, there’s a significant chance you or your partner could live into your 90s. Plan for at least 30 years of retirement. Things to consider may include:

• Whether to delay taking the State Pension if possible for higher payments
• Ensuring some guaranteed income streams
• Keeping some growth investments to combat inflation
• Planning for potential long-term care needs

 

4. Maximise Pension Contributions and Tax Benefits

16% of retirees wished they had taken more advantage of pension tax benefits. Pension contributions receive tax relief, employer matching (if available), and grow tax-free. This is essentially free money and one of the most powerful wealth-building tools available. Contribute as much as you can afford, especially:

• During high-earning years
• When you receive bonuses or windfalls
• If your employer offers matching contributions

 

5. Work With a Financial Planner

This may be the single most impactful decision you make. Research consistently shows that people who work with financial planners achieve significantly better retirement outcomes. Studies have found that those who work with a financial planner expect to retire two years earlier and have saved twice as much money for retirement as those without. Additionally, three in four people with an adviser believe they will be financially prepared to retire, compared to just 45% without an adviser who feel the same.

Academic research has shown that those who calculated retirement needs and used a financial planner generated more than 50% greater savings than those who estimated retirement needs alone. Other studies suggest that through managing investments, taxes, and retirement withdrawals, an individual’s retirement income can be increased by 22.6% by working with an adviser.

Beyond the financial benefits, around 9 in 10 clients of financial planners feel financially secure, and a similar proportion feel tangibly better off. Those who work with advisers also score nine points higher on financial well-being measures than those who don’t, and experience decreased stress and anxiety. A good financial planner helps you:

• Set realistic goals and create a comprehensive plan
• Optimise your investment strategy for your risk tolerance and timeframe
• Navigate complex pension and tax rules
• Avoid costly mistakes
• Stay disciplined during market volatility
• Plan for contingencies

 

6. Understand Your Pension Options and Decumulation Strategy

13% of retirees wished they had better understood how to use their pension savings for retirement income. The shift from accumulation (saving) to decumulation (spending) requires a completely different strategy. Before retiring, it’s important to understand:

• How to access your pension savings
• The tax implications of different withdrawal strategies
• The role of annuities (guaranteed income products)
• Sustainable withdrawal rates
• How to sequence withdrawals from different account types

 

7. Create a Flexible Spending Plan

Balance is critical. You need enough money to last, but you also want to enjoy retirement, especially the early active years. Consider a dynamic spending approach:

• Spend slightly more in early retirement (ages 65-75) when you’re active
• Reduce spending in middle retirement (ages 75-85)
• Increase again if needed for care in later years

 

Build in flexibility to adjust spending based on market performance and life circumstances.

 

8. Maintain Some Growth Investments

6% of retirees wished more of their income was guaranteed rather than fluctuating with investments. While some guaranteed income provides peace of mind, you also need growth to combat inflation over a potentially 30-year retirement. A balanced approach might include:

• Guaranteed income from State Pension or annuities to cover essential expenses
• A diversified investment portfolio for growth and flexibility
• Regular portfolio reviews to adjust risk as you age

 

9. Don’t Obsess Over Market Timing

Market volatility feels scarier in retirement because you’re depending on your savings for income. However, trying to time the market or making panic-driven decisions typically backfires. Instead, the best strategy may be to:

• Maintain an appropriate asset allocation for your stage of retirement
• Keep some money in cash or stable investments
• Rebalance regularly
• Avoid checking your portfolio daily
• Stick to your long-term plan through market ups and downs

 

10. Review and Adjust Regularly

Retirement planning is not a ‘set it and forget it’ exercise. Review your plan at least annually, and whenever you experience major life changes:

• Health changes
• Market volatility
• Changes in spending patterns
• Family circumstances
• Tax or pension law changes

 

Regular reviews help you stay on track and make adjustments before small problems become big ones.

 

Taking Action: Securing Your Future

The retirees surveyed in this research learned their lessons the hard way. You don’t have to. Their experiences provide a roadmap for what to do differently.

The overwhelming message is clear: thorough planning makes an enormous difference. Those who plan comprehensively are more likely to have sufficient savings, realistic expectations, and the confidence to enjoy their retirement years without constant financial anxiety. The cost of not planning is high. It’s not just about having less money; it’s about the regret of knowing you could have done better, the stress of uncertain finances in your later years, and the missed opportunities to enjoy the retirement you worked decades to achieve.

But here’s the encouraging truth: it’s almost never too late to improve your situation. Whether you’re in your 30s, just starting out, your 50s, hitting peak earning years, or your 60s, approaching retirement, taking action now will make a difference. And remember, the retirees who wished they had planned more thoroughly are sending you a clear message from the future. Listen to them. Learn from their experience. Take action now to secure the retirement you want, with no regrets. Your future self will thank you for the decisions you make today.

 

If you would like to talk about any of the issues in this article or need more general help with your finances, please get in touch with us.

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