Retirement Retirement Planning

Kevin O'Leary Says Retirees Should Never Do These 6 Things With Money

Mr. Wonderful's retirement advice can help you shore up your savings now.

By Josh Koebert , Edited by Laura Hohenstein

Updated Oct. 3, 2026

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Trying to find neat tricks to avoid wasting money in retirement? There's no need to reinvent the wheel: plenty of pioneering experts have outlined a successful path forward. All you have to do is follow their advice.

Take multi-millionaire Kevin O'Leary, "Mr. Wonderful" himself. The Shark Tank investor strongly believes anyone can retire a millionaire, but it takes decades of discipline and a strict adherence to some fundamental savings and investing principles.

Keep reading for our list of O'Leary's financial fitness retirement tips, including which habits to avoid at all costs.

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Don't retire while you still have debt

In his 2014 book on retirement, spending, and saving, O'Leary wrote, "Don't retire until you can afford it." This could mean delaying your retirement past 55 or even 65, but per O'Leary, the wait is worth it if you can retire debt-free.

He continues, "If you're heading toward retirement with debt, now's the time to budget as you've never budgeted before." While restructuring your budget and tightening your purse strings can be painful, paying off debt earlier reduces the amount of interest you owe, allowing you to save more.

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Don't put off paying down high-interest debts

While all debt puts pressure on your budget, O'Leary specifically recommends paying off high-interest debt that compounds over time. When asked what Americans in financial distress should do to get back on track, O'Leary told Fox Business, "Pay off their credit cards immediately, that's what they should do."

While credit card payments with high interest rates can be manageable while you're working, keeping up with that compounding interest becomes increasingly hard once you're on a fixed income. Following O'Leary's advice can help you retire with one fewer stressor on your plate.

Don't rely on Social Security as your primary income source

Kevin O'Leary has said it's a mistake to count on Social Security as your sole (or even primary) income stream in retirement, according to The Street. In reality, you might not be able to use Social Security as your primary source of income even if you wanted to.

Social Security is likely heading for a massive financial cliff: the trust fund that keeps it going is due to run out by Quarter 4 of 2033. If Congress doesn't intervene, about 62 million American retirees and their family members will see their benefits cut by 22%.

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Make sure you aren't underestimating healthcare costs

If you've led a relatively healthy life, it can be easy to underestimate exactly how much you'll spend on healthcare once you retire. However, Fidelity Investments reports that in 2026, a worker who retires at age 65 will spend an average of $185,500 on medical expenses and other healthcare costs throughout the rest of their lifetime.

That's one key reason why O'Leary warns workers to start cutting down on spending well before retiring. "Spend those last few working years socking away as much money as you can," he says, "but also use those years to practice living on a lot less, lowering your expectations, and cultivating disciplined spending habits."

Remember that your retirement savings need to last for decades

It's all too easy to overspend in the first few years of your retirement, especially if you haven't reigned in your spending habits after years of full-time work. As O'Leary says, "If you don't think you can go days without spending money on useless crap like magazines, gum, or coffee, then you're going to be in trouble a few years into retirement."

After all, your retirement savings need to last you far more than a year: ideally, you'll be relying on them for the next 25 to 30 years.

Don't prioritize prospective windfalls ahead of relying on your savings ability

Getting an unexpected influx of cash from the lottery or a distant relative's will isn't outside the realm of possibility. However, it isn't likely, and it definitely isn't as dependable as simply putting a portion of your paycheck into savings every time you're paid.

For instance, in a 2026 Instagram reel, O'Leary told viewers, "What piece of advice do I give my kids over and over and over again about money? Don't spend it. Save it. Invest it. Let it compound. That's the gift the market gives you."

In other words, consistency will ensure you have a safe, comfortable retirement, not waiting around for a windfall that may or may not come.

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Bottom line

No matter how close or far you are from leaving the workforce, O'Leary has one final piece of advice that will keep you on track for retirement: "If you make $68,000 a year, the average salary, and you do this your entire life, just 15% of your paycheck, you'll end up a millionaire at retirement at 65."

Of course, the more you save, the more compound interest you'll earn, and the more money you'll be able to retire with. If you can save more than 15%, go for it. Your future retired self will thank you.

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

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