Retirement Retirement Planning

The 401(k) Decision Boomers Regret the Most

Make sure you avoid these mistakes at all costs.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated Sept. 10, 2026

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Those who are Baby Boomers are currently aged 62 to 80 years old. That means they're either nearing retirement or are a few years into their golden years.

Unfortunately, research shows that a majority of boomers regret not saving enough for retirement. Here are some things you can do to pad your 401(k) in your last few years of working, as well as where to go to get advice about your retirement plan.

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Research shows Boomers regret not saving enough the most

According to a January 2026 survey from the Nationwide Retirement Institute, over 80% of Boomers and Gen Xers regret not saving for retirement sooner. The research found that many people in this generation also wished they understood more about how investing and compound interest worked.

Another surprising statistic is that one out of every eight retirees plans to return to work. This usually occurs because retirees haven't saved enough, have realized retirement is too expensive, or feel lost without the sense of purpose that work brings.

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The consequences of not saving early enough for retirement

The challenge with not saving early or retiring is that you may have missed out on years of employer matches and compound investment growth.

However, there are ways to add more to your retirement accounts towards the end of your working years. Workers who are age 60 to 63 can contribute an additional $11,250 in addition to the $24,500 401(k) maximum.

Many baby boomers didn't understand that 401(k)s aren't guaranteed income

The same survey from the Nationwide Retirement Institute also showed that over half of Baby Boomers believe that their 401(k)s guarantee a predictable income in retirement.

Previous generations were able to rely more on pensions. However, employees with 401(k)s are largely responsible for managing, growing, and withdrawing from their 401(k)s. Starting later may mean they won't save enough to afford retirement.

Social Security does provide a guaranteed income, but it may not be enough

Although 401(k)s do not typically provide guaranteed income, one source of guaranteed income for retirees is Social Security. However, another mistake that retirees make is relying too much on Social Security. Neither 401(k) withdrawals nor Social Security was meant to be the sole source of income for retirees.

How much to withdraw from a 401(k) during retirement

One of the most important financial decisions retirees will make is planning their 401(k) withdrawal strategy. These withdrawals depend on a person's income, 401(k) balance, and retirement goals.

Many financial advisors use the 4% rule as a guideline. This rule recommends that retirees withdraw 4% of their retirement balance in the first year of retirement. Then, after that, retirees can adjust their withdrawals based on inflation. The amount of your retirement withdrawals can impact your taxes, so it's important to consult with a professional to make sure you don't draw down too soon. You also must make your first 401(k) withdrawal by age 75 if you were born in 1960 or later. If you were born before 1060, you're required to make your first withdrawal by age 73, according to Required Minimum Distribution (RMD) laws.

Ultimately, good money management creates a solid retirement

Learning to live on a budget, track your expenses, and manage your 401(k) can help you build a solid retirement nest egg. Learning how to live within your means is also extremely important as people transition into retirement.

Most people in retirement live on a fixed income during their golden years, and the costs of retirement can be surprising. Health care can be especially expensive in retirement, with the average person over age 65 spending nearly $185,500 on health care costs, according to Fidelity. So, having an emergency fund, learning how to live on less, and understanding how to save and invest throughout your later years can all help create a secure retirement.

A financial advisor can help you avoid common 401(k) mistakes

Baby Boomers are in a unique position. This generation has worked hard and wants to enjoy their life in retirement. However, they're also worried about their nest eggs lasting for the long haul.

If you want to avoid money mistakes in retirement, learn how to weather market volatility, and make a clear plan for your retirement withdrawals, consult with a licensed financial advisor. They can review your financial goals, recommend tax strategies, and help you prepare for your later years.

Bottom line

Ultimately, everyone deserves to eliminate some money stress in retirement. However, those who don't save early enough might feel like they don't have a large enough nest egg to make their retirement dreams a reality. If you're nearing retirement, there is still time to take advantage of catch-up contributions and seek help from a financial advisor if you want to develop the best retirement plan for your lifestyle goals.

This article is for informational purposes only and should not be considered investment advice.

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