Senior Citizens Financial Regrets
- Limited Retirement Plans
- Too Much Debt
- No Funeral Planning
- Spending Too Much Money
- Not Putting Cash Back
Looking at some of the top financial regrets of the elderly in America can help you learn what to avoid in your own future. Many people assume that when they reach retirement age that they can immediately retire and spend the rest of their days having fun with their loved ones, but many find that they do not have enough cash to retire on later in life. There are many other regrets that senior citizens have too.
Limited Retirement Plans
According to Market Watch, the most popular regret listed by the elderly is that they did not plan properly for their retirement years. When you take on your first full-time job, you can start saving for your retirement years. The more money you put into your retirement fund, the more cash you’ll have later. Some elderly people find that they either do not have enough money to retire on or that they need to work part-time to stay afloat.
Too Much Debt
Borrowing money at a younger age may not seem like a big deal. You’ll charge a new pair of shoes, a few drinks while out with friends or a new outfit for a first date and plan on paying it back later. The more money that you spend in your younger years though is more money that you will need to pay back later. Many elderly people find that they cannot retire or cannot enjoy their retirement years because they need to pay off the debt they accumulated earlier in life, including credit card debt, student loans and a mortgage.
No Funeral Planning
The cost of a funeral is quite high. Even if you opt for cremation in lieu of a burial service and cut back on the flowers and visitation hours, it will still cost you thousands of dollars. Life insurance will give you some cash, but some policies won’t even pay out enough to cover the cost of the funeral. Senior citizens often regret that they didn’t take the time to plan for their own funerals. Many funeral homes have a pre-pay option that lets customers pay for a plot and burial expenses in advance.
Spending Too Much Money
Spending too much money is another of the financial regrets that senior citizens have. Market Watch uses the example of a couple who spends more than they can afford on a new house. Banks often give borrowers a maximum amount they can borrow, which lets those borrowers assume they can afford that much. Those borrowers wind up spending years trying to pay off their homes. Taking out a second or third mortgage on a house, buying a second home and racking up credit card debt are other examples of spending too much money.
Not Putting Cash Back
A common regret reported by the elderly in America is that they didn’t save enough in their earlier years. While no one recommends that you become so frugal that you dumpster dive and reuse paper products, you can look for ways to cut back on your expenses and put more money into your savings account. You can use the money that you save to pay off your student loans, credit cards, car loan or mortgage faster too.
Many people look forward to retiring when they reach the age of 65, but more and more senior citizens find that they need to work longer because of the financial mistakes they made in their younger years. Not planning for retirement, borrowing too much and spending too much money are some of the financial regrets that senior citizens in America have.