Survey: 2 in 5 Americans regret not saving enough for retirement or emergencies

Mistakes are normal in anyone’s financial journey. If you’ve made a financial decision in the past that you regret, like taking on too much credit card debt, know you’re not alone. The majority (77 percent) of U.S. adults have a financial regret, according to Bankrate’s newest Financial Regret Survey. Most notably, 22 percent of people regret not saving for retirement early enough.

Just because you regret a past financial mistake doesn’t mean you can’t catch up by saving more or paying off debt. However, many people haven’t made the progress they’ve hoped for. Two in 5 (40 percent) people with a financial regret haven’t made any progress on their regret over the last 12 months. The biggest reason? Nearly half (45 percent) of Americans with a financial regret say, over the past 12 months, inflation/high prices negatively influenced their progress on that regret.

Bankrate’s key findings on Americans’ financial regrets

Nearly 1 in 4 people regret not saving for retirement early enough

Just under a quarter (22 percent) of Americans say their biggest financial regret is not saving for retirement early enough, more than any other regret suggested by Bankrate. Another 18 percent say not saving enough for emergencies is their biggest financial regret:

Source: Bankrate survey, July 16-18, 2024

Note: Not all percentages total 100 due to rounding.

Despite high credit card interest rates in recent years, only 14 percent of people say taking on too much credit card debt is their biggest financial regret. That percentage has fallen since 2021, when 18 percent of people said it was their biggest financial regret.

A small percentage of people say their biggest financial regret is taking on too much student loan debt (5 percent), not saving enough for their child’s education (4 percent), buying more house than they can afford (2 percent) or something else (12 percent). Another 18 percent of Americans don’t have a financial regret at all.

Younger Americans, who are decades away from retirement, are more likely to regret not saving enough for emergency expenses, compared to regretting not saving enough for retirement. Twenty-six percent of Gen Zers (ages 18-27) and 21 percent of millennials (ages 28-43) say their biggest financial regret is not saving enough for emergency expenses. Only 5 percent of Gen Zers and 13 percent of millennials say their biggest financial regret is not saving for retirement early enough.

On the other hand, as Americans age, they are less likely to worry about emergency savings and more likely to regret not saving early enough for retirement. Twenty-six percent of Gen Xers (ages 44-59) and 37 percent of baby boomers (ages 60-78) say their biggest financial regret is not saving enough for retirement, more than any other option suggested by Bankrate. Only 16 percent of Gen Xers and 11 percent of baby boomers say their biggest financial regret is not saving enough for emergency expenses.

Not saving for retirement early enough has been the No. 1 regret among Americans for six out of the seven years Bankrate has asked about financial regrets. The one exception is in 2021, when not saving enough for emergency expenses was the No. 1 regret. (This figure from 2021 references a June 2021 survey conducted for Bankrate by SSRS.)

Degree-holders don’t commonly cite student loans as their biggest financial regret

Taking on too much student debt wasn’t a top regret for any major demographic, even among those who are presumably more likely to have it: Only 11 percent of people with a post-graduate degree say their biggest financial regret is taking on too much student loan debt. Regretting taking on too much student loan debt ranked No. 3 among that cohort for biggest financial regrets, after not saving for retirement early enough (26 percent) and taking on too much credit card debt (14 percent).

Similarly, only 7 percent of people with a four-year degree say their biggest financial regret is taking on too much student loan debt, making it the No. 4 option, after not saving for retirement early enough (24 percent) and taking on too much credit card debt or not saving enough for emergency expenses (both 14 percent).

40% of people with a financial regret haven’t made any progress on it in the last year

It can be difficult to catch up after a financial regret, but if possible, it’s important to start now. If you regret not contributing enough toward retirement savings, for example, you can begin increasing your retirement contributions now to let those savings grow over time. However, 40 percent of people with financial regret haven’t made any progress on that regret in the past 12 months. Another 44 percent of people with a financial regret have made some progress in the last 12 months, and only 16 percent have made significant progress:

Source: Bankrate survey, July 16-18, 2024

Notes: Not all percentages total 100 due to rounding; Percentages are of U.S. adults with a financial regret.

Older Americans were more likely to have not made any progress on their regret compared to younger Americans. Nearly half of Gen Xers (46 percent) and baby boomers (45 percent) with a financial regret haven’t made any progress in the last 12 months, compared to 36 percent of millennials and 26 percent of Gen Zers with a financial regret.

Americans who say they regret taking on too much credit card debt are the likeliest group to have made some progress in the past 12 months (52 percent, with an additional 22 percent saying they have made significant progress).

On the other hand, those with a savings-related regret were likeliest to have not made any progress in the past 12 months, including 51 percent of those who regret not saving enough for their children’s education, 43 percent of those who regret not saving early enough for retirement and 42 percent who regret not saving enough for emergencies.

If you’re one of the many Americans trying to make financial improvements, but you’re not sure whether you should concentrate on increasing savings or paying off debt, Bankrate Chief Financial Analyst Greg McBride, CFA, recommends prioritizing your debt.

“Saving is a lot less painful than dealing with the debt that results when you don’t have it. Paying down debt means doing without, cutting spending or working more,” McBride says. “Saving for retirement and emergencies can be automated through payroll deduction, direct deposit and automatic transfers. Start modestly and after a couple of pay periods you won’t miss what you don’t see.”

Inflation remains a sticking point among people seeking financial progress

Nearly half (45 percent) of Americans with a financial regret say inflation/high prices has negatively influenced their progress on their financial regret over the last 12 months. More people cited inflation or rising prices than any other option suggested by Bankrate, including their employment situation (18 percent), high interest rates (9 percent), family dynamics (7 percent), housing market conditions (3 percent) or something else (8 percent):

*Nothing has negatively influenced my progress on my financial regret over the past 12 months

Note: Percentages are of U.S. adults with a financial regret.

Source: Bankrate survey, July 16-18, 2024

Around half of people who regret not saving for retirement early enough (51 percent) or who regret not saving enough for emergencies (49 percent) say inflation or high prices negatively influenced their progress on their financial regret over the last 12 months, more than any other type of regret.

Don’t wait for the inflation rate to go down to start working on your financial goals. McBride says that, while the inflation rate is falling, prices are still going up year-over-year — just not as fast as they did in 2022.

If you have a financial regret, start to implement small changes today. It’s difficult to try and juggle saving for retirement and emergencies, as well as paying down debt. However, small steps towards your goals today will help you see big gains — both financially and in peace of mind — in the future.

• Methodology

  Bankrate commissioned YouGov Plc to conduct the survey. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,355 adults, of whom 1,822 have a financial regret. Fieldwork was undertaken between 16th – 18th July 2024. The survey was carried out online and meets rigorous quality standards. It employed a non-probability-based sample using both quotas upfront during collection, followed by a sample matching process and then a weighting scheme on the back end designed and proven to provide nationally representative results.