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Recent retirees face financial regrets as market volatility tests retirement plans

Study finds recent retirees wish they had saved more or started earlier

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
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Key Insights

  • Many Americans who retired within the past five years say they regret how they prepared financially, with more than half wishing they had saved differently or started earlier.
  • Market volatility and rising costs are forcing recent retirees to adjust budgets, tap savings sooner than expected, and rethink their investment strategies.
  • Financial advisors report that the first years of retirement are now more hands-on than ever, with greater emphasis on guaranteed income and ongoing plan adjustments.

For millions of Americans who retired in the last five years, the shift from earning a paycheck to relying on savings has been more jarring than expected. A new Advisor Authority study, powered by the Nationwide Retirement Institute, finds that a majority of recent retirees are second-guessing the financial decisions they made during their working years.

According to the study, 55% of people who retired within the past five years say they have regrets about how they saved for retirement. More than a quarter say they wish they had started saving earlier, while others wish they had consistently contributed more to their retirement accounts.

Real-world financial pressures

Those regrets are being reinforced by real-world financial pressures. Only 40% of recent retirees say they are still on track with the budget and withdrawal plan they originally created. 

One in five say they have had to cut back spending more than they expected, and just 20% have been able to rely entirely on guaranteed income sources such as pensions or Social Security without dipping into personal savings.

“Many recent retirees told us they wish they had saved differently, highlighting a critical truth: retirement planning isn’t just about setting a number — it’s about building a strategy that anticipates life’s changes,” said Kevin Jestice, president of Nationwide Retirement Solutions. 

He emphasized that regular check-ins with a financial advisor and ongoing adjustments can help retirees regain a sense of control.

Market volatility

Market volatility has added another layer of stress, particularly for those new to retirement. The survey found that half of recent retirees have changed their portfolios in response to market swings, compared with just one-third of people who retired more than five years ago. Fifteen percent made major changes, nearly double the rate of longer-term retirees.

These market concerns are influencing day-to-day decisions as well. Nearly half of recent retirees say volatility has affected how they manage withdrawals or spending, and more than one-third say recent events have made them more open to putting part of their portfolio into an annuity or other guaranteed income option.

Financial advisors say the early years of retirement require extra attention. Sixty percent report that adjusting to life without a paycheck is a major challenge for new retirees, while others struggle with anxiety over market performance and staying within budget. As a result, 85% of advisors say they have recommended changes to clients’ withdrawal strategies due to recent market conditions.

Getting more engaged

Rather than stepping back after retirement, many retirees are becoming more engaged with their finances. More than half review their portfolios at least once a month, and some check in weekly or even continuously during periods of volatility. Advisors, in turn, are placing increased focus on health care costs and guaranteed income solutions.

“The first few years of retirement are critical,” Jestice said. “With expert guidance, retirees can feel confident their plan supports both today’s needs and tomorrow’s possibilities.”

The Nationwide Retirement Institute says it continues to provide tools and resources to help advisors and clients navigate these challenges, particularly as more Gen X workers approach retirement.