The 401(k) Decision People in Their 50s Regret the Most

When workers turn 50, something shifts. You're no longer in the early stages of your career, so you might be wondering how to maximize your 401(k) retirement plan during the time you have left working. After all, the goal is to retire on time with enough money to enjoy pursuing many of your hobbies and interests.

Unfortunately, there are several decisions that people in their 50s say they regret when it comes to managing and investing in their 401(k) plans. Below is a list of common 401(k) plan mistakes, starting with the one people in their 50s tend to regret the most.

Not saving enough or getting the full employer match

About 28% of workers over 45 expect they'll have to delay their retirement because they did not save enough for it, according to the Protected Retirement survey from the Nationwide Retirement Institute®. That's why the biggest 401(k) decision people regret in their 50's is not saving enough for retirement. Additionally, people in their 50s regret not taking advantage of their full employer match, which is essentially free money for those who meet specific criteria.

Adjusting investments based on fear

Investing in the market can feel uncertain, especially when there is widespread economic unrest. According to a Charles Schwab study, almost 25% of 401(k) holders changed their investments because of market fluctuations and inflation. While adjusting your holdings to be more conservative is normal, especially as you get closer to retirement, making big changes due to fear can sometimes lead to more losses than you expect.

Forgetting to increase contributions

If your employer does not have the ability to automatically increase your contributions each year, it's up to you to slowly increase them as you get raises. Forgetting to do this can mean tens of thousands of dollars of lost investment gains by the time you reach your 50s and 60s.

Taking out a 401(k) loan

Many people in their 50s regret taking out a 401(k) loan. That's because the money you withdraw from your 401(k) cannot go to work for you in the market. Although you can pay yourself back, you can never make up for the time you lost during your repayment period. People in their 50s who are trying to increase their retirement holdings often wish they had used an emergency fund instead when hardships arose. The Trans America Institute estimates that 31% of people have tapped into their retirement accounts by taking out a 401(k) loan.

Having too much employer stock

If you're in a job where you have the opportunity to purchase employer stock, it's important not to let it make up too much of your portfolio. That's because employer stock can be volatile, especially if your company experiences challenges or goes bankrupt. If your portfolio is made up of too much of your employer's stock, many financial experts consider that too risky an allocation, especially once you're in your 50s.

Missing important tax changes

When you turn age 50, you have the opportunity to take advantage of catch-up contributions. At 50, you can now contribute an extra $8,000 towards your 401(k) in addition to the new (as of 2026) $24,500 limit. Many people in their 50s regret not taking advantage of the opportunity to boost their retirement savings.

Not checking 401(k) fees

Sometimes, the fees associated with your 401(k) are buried in financial jargon. But it's important to pay attention to the 401(k) fees you pay, especially if you are in your 50s and want to maximize your retirement contributions. Some fees, even if they look low, like 1%, can dramatically cut into your retirement returns. The worst part is that it often happens without you realizing it.

How to review your 401(k) plan

If you're not sure how to review your retirement plan, start by requesting a 401(k) plan overview from your human resources department. A plan overview should list the cost of your plan, the employer match your company offers (if any), and the funds the plan provides. You should also be able to review each of your funds' expense ratios, which are the fees that certain funds charge once you invest in them. If you have any questions, make sure to speak with your human resources department or a licensed financial planner or accountant.

Bottom line

People in their 50s often regret not paying more attention to their 401(k) retirement plan details. It's easy to set up a 401(k) automatic withdrawal and then forget about it. However, if you're approaching your 50s or are in your 50s now, check up on your retirement readiness. Review your retirement plan regularly. Ask questions and make sure you understand recent tax changes and the fees you're paying. Doing this with your 401(k) plan can help you to retire comfortably and on time in the future.

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