New Retirement Study: Why So Many Recent Retirees Have Regrets
More than half of recent retirees say they regret how they saved, and only 2 in 5 feel on track with their original retirement plan. See what the data reveals and how to stress-test your 401(k) strategy before retirement begins.
What’s Really Happening to Recent Retirees?
There’s a gap between how retirement is supposed to look and what many recent retirees are actually experiencing.
According to the 2026 Advisor Authority Study from the Nationwide Retirement Institute:
- 55% of recent retirees (those retired in the last 5 years) say they have regrets about how they saved for retirement.
- 40% of recent retirees say they’re on track with their original budget and decumulation plan
- 20% of recent retirees have avoided the need to tap retirement savings by relying solely on the guaranteed income of a pension and/or Social Security.[1]
What Are Some of the Biggest Financial Challenges New Retirees Face?
The takeaway from the Advisor Authority Study is that many retirees are adjusting after retirement begins – when changes are harder to make.
Only 2 in 5 Are on Track with Their Original Plan
Compared to their pre-retirement expectations, “Just 2 in 5 recent retirees say they’re on track with their original budget and decumulation plan.”[1]
And 1 in 5 say they’ve had to be more conservative with spending than they anticipated.
That means many retirees are scaling back – not because they want to, but because their plan didn’t hold up the way they expected.
Market Volatility Is Forcing Strategy Changes
Nationwide’s research shows 50% of recent retirees adjusted their portfolios due to market turbulence (compared to 33% of longer-term retirees).
In addition,15% made significant changes to their portfolio – nearly double the 8% of longer-term retirees who did the same.
47% say market volatility has changed how they manage withdrawals.[1]
Adjusting withdrawals mid-retirement may have lasting consequences, especially during down markets.
Rising Costs Are Creating Pressure
In the same research set, 97% of financial professionals said rising living costs are making it harder for Americans to retire comfortably.[2]
Inflation doesn’t just impact groceries and gas – it impacts how long your savings need to last.
Many Wish They Had Started Earlier or Saved More
When asked about regrets, 28% of retirees said they wish they had started saving earlier, and 13% said they wish they had saved more annually.[1]
How Sound Is Your Retirement Plan?
If you’re asking yourself, “How do I know if my retirement plan is strong enough?” you’re already ahead of most people.
As the data above shows, many retirees only discover weaknesses in their plan after they stop working – when adjustments are harder to make.
The better move? Stress-test your plan before retirement begins.
Here’s where we recommend to start:
Would Your Future Budget Survive Market Volatility?
If the market dropped 20% the year you plan to retire, would your income plan still work?
Or would you need to delay retirement, reduce withdrawals, or cut spending?
A strong retirement strategy anticipates downturns. It doesn’t assume smooth returns every year.
Do You Have a Clear Withdrawal Strategy Before You Need One?
Most people focus on saving.
Far fewer think about how they’ll actually withdraw money.
- Which accounts will you tap first?
- How much will you withdraw annually?
- How will taxes factor in?
If you don’t have answers yet, that’s okay, but you should before retirement arrives.
Are You Relying Too Heavily on Market Performance?
If your retirement only works if markets cooperate, we would consider that a fragile plan.
Markets are unpredictable. A sound strategy can build in flexibility through diversification, risk management, and realistic return assumptions.
Have You Stress-Tested Your Plan?
Have you modeled how your retirement holds up under:
- Higher inflation
- Lower-than-expected returns
- Living longer than expected
- Unexpected healthcare costs
If not, now may be the perfect time.
Because we believe the biggest takeaway from recent retiree data is this:
Regret usually doesn’t come from laziness.
It comes from assuming the plan would work…without testing it first.
And while you’re still contributing to your 401(k), you have something new retirees don’t: Time to adjust.
6 Steps You Can Take Now to Help Avoid Retirement Regret
The good news? If you’re still working and contributing to your 401(k), you still have time to adjust.
Here are 6 smart moves we recommend to make now:
#1 Increase Your Contribution Rate
Even a 1% increase may meaningfully improve your long-term outcome. If you receive a raise or bonus, consider directing part of it toward retirement before lifestyle creep sets in.
#2 Get the Full Employer Match
At a minimum, contribute enough to capture your entire company match.
#3 Review and Rebalance Your 401(k)
Make sure your portfolio matches your time horizon and risk tolerance, not just the default target-date fund you were auto-enrolled in.
#4 Stress-Test Your Plan
Run projections that account for market downturns, inflation, and longevity. Don’t assume average returns will carry you through.
#5 Create a Withdrawal Strategy before Retirement
Know how you’ll generate income before you need it. Decide which accounts you’ll tap first and how taxes will factor in.
#6 Get Professional Guidance
If you’re serious about building a stronger, more resilient 401(k), you don’t have to do it alone.
401(k) Maneuver provides professional account management designed to:
- Increase long-term performance
- Reduce downside risk
- Help you avoid unnecessary fees
- Keep your investments aligned with your goals
No meetings. No moving your account. No new accounts to open.
Just better management…done for you.
Book a complimentary 15-minute 401(k) Strategy Session with one of our advisors.
Sources
[1] Nationwide Retirement Institute. Advisor Authority Study: Recent Retirees Data Deck, 2026.
https://news.nationwide.com/download/2f29339a-1e79-4dc4-98c9-bcdb101792c0/nfm-25301aonationwideadvisorauthorityrecentinvestorsdatadeck.pdf
[2] Nationwide Retirement Institute. More Than Half of Recent Retirees Have Regrets About How They Saved for Retirement. Published January 2026.
https://news.nationwide.com/more-than-half-of-recent-retirees-have-regrets-about-how-they-saved-for-retirement/
