Retirement Retirement Planning

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

This choice could cost you thousands down the road.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated May 25, 2026

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Managing a 401(k) retirement plan can be challenging. The rules tend to change, some fees are hidden, and many people feel like they're behind on their retirement savings goals. By the time employees reach their 60s, many, unfortunately, have regrets about their 401(k)s and how they invested.

However, knowing their regrets can help you better prepare for your own retirement years by learning from their mistakes.

The biggest 401(k) regret people have is listed below, along with several other decisions many workers wish they hadn't made during their employment.

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Waiting too long to contribute to a 401(k)

When it comes to 401(k) investments, the earlier you start, the better, thanks to the wonders of compound interest. So, it comes as no surprise that the biggest regret people in their 60s have is not starting their retirement savings sooner.

A recent Bankrate survey found that more than one in five Americans regrets not saving for retirement earlier. Remember, if you're young, a little goes a long way. Even starting with investing 1% of your income in your 401(k) can help.

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Assuming they would catch up later

Many employees know that they can make catch-up retirement contributions later in their working years. Many people think those contributions will make up for lost time because they can invest more when their income is higher.

As of 2026, people over age 50 can contribute an additional $8,000 a year to their 401(k)s. People who are 60 to 63 can contribute an extra $11,250. While these catch-up contributions are helpful, they often don't make up for not investing in your 20s and 30s.

Underestimating early growth

If you want to see how much investing in your 20s and 30s can grow over time, use a retirement calculator to see how much compound interest grows your money more over a 30-year career.

Many people underestimate just how far small contributions can go when you're just starting out. As mentioned previously, contributions, even large catch-up contributions, don't have the same impact as investing when you're younger.

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Missing out on employer matches

According to Vanguard's How America Saves 2025 data, 65% of work retirement plans offer immediate eligibility for matching contributions. However, many employees regret not getting the full employer match. Many people either didn't understand their employer match or felt they needed more take-home pay to cover their monthly expenses.

Still, employer matches are essentially free money for employees, and if your employer offers one as a benefit, it's best to take advantage of it.

Realizing retirement is more expensive than expected

Many people in their 60s who enter retirement are often surprised to find it more costly than they expected. It's becoming more common for retired people to take on part-time jobs to improve cash flow.

Whether people underestimated how much inflation would affect the prices of goods or realized they couldn't maintain the lifestyle they envisioned in retirement, many people regret not planning their retirement budgets more thoroughly.

How to learn from these common regrets

Discovering what people in their 60s regret most about their 401(k) management is not about criticizing their financial decisions. Instead, it's about recognizing how little financial education there is in the workplace and how challenging it is to prepare for retirement while balancing work, raising a family, and managing other responsibilities.

For those reading this who are in their early to mid-careers, learning from the mistakes of people who are retired now can help you to be better prepared for your own retirement.

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Where to find help for 401(k) decisions

If you want to better prepare for retirement but you're not sure where to go for advice, contact your human resources department at work first. Your HR department can provide information about your employer's 401(k) options, your company match, and other benefits you might not be aware of.

If you're not sure how contributing to your 401(k) will impact your taxes, your Social Security Benefits, or your retirement balances at the end of your career, make sure to work with an accountant or financial advisor who can help you. Their job is to explain how each decision you make with your 401(k) can impact your finances now and in the future.

Bottom line

The main regret people in their 60s have about their 401(k)s is not having started saving earlier. However, many retirees also have several other regrets, including not taking advantage of their employer's match or not being aware of rising costs.

Understanding what people later in life regret can help those who are just starting their careers (or in the middle of it) learn from their mistakes. Avoiding making the same ones can help you enjoy a stress-free retirement and plan better for the future.

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