6 Things You’ll Regret Saving for in Retirement

Retirement comes with its share of costs. From long-term healthcare expenses to property taxes to everyday expenses — like utilities, food and transportation — you’ll want to be financially prepared when the time comes.

You might not realize it, but it’s possible to save more than you need on certain things and to regret that decision later. The good news is that you can often move your money around later to cover other expenses — ones that are more important to your life.

Regardless, if you’re saving up for retirement, here are a few things you might end up wishing you’d put your money toward instead.

Doug Roller, founder at Crossroads Financial Group, said that some retirees regret over-saving for healthcare expenses.

“This can lead to sacrificing other aspects of retirement, such as travel or leisure activities, which can result in regret later,” he said.

On the other hand, it’s hard to say how much is too much when it comes to your healthcare savings. Some retirees don’t save enough for long-term care needs. Rather than set aside excessive amounts of cash for month-to-month healthcare expenses, it could be wiser to allocate some of that money for long-term care.

“Long-term care services can be costly, and having a financial plan in place to cover these expenses can help individuals protect their assets and ensure they receive the care they need as they age,” said Roller.

It does depend on your situation, and current — and anticipated — healthcare needs. So, review your circumstances carefully when planning your retirement.

This might seem counterintuitive to the idea of over-saving, but a common regret many retirees have is that they saved so much that they end up missing out on things later.

“Many people have worked hard to earn an income and save and invest for years and should have the confidence to spend it in retirement,” said Chris Urban, CFP, RICP, founder at Discovery Wealth Planning. “Part of the issue is that people do not know how much money they can actually afford to spend.”

So, how can someone figure out their anticipated spending needs in retirement — without having to miss out on things now or then?

“There are various rules of thumb that might help get people in the neighborhood of being comfortable; however, a well-constructed retirement income plan will allow for the actual amount of dollars spent over time to vary, according to the level of your assets and liabilities and income and expenses,” said Urban. “It’s important to monitor your plan and be aware of your spending capacity so that you aren’t left feeling like you should [have] spent more.”

Timeshares are popular amongst those who want a place where they can go without having to pay the full cost of property ownership. But they can also be expensive, especially for those who don’t end up using them as often as they’d planned.

The average cost of a timeshare is $21,455, according to American Resort Development Association. This doesn’t account for things like annual maintenance fees. It’s for this reason — actual costs plus the minimal use — that many retirees regret saving up for or purchasing one.

“With options like Airbnb and VRBO, clients regret succumbing to the pressure of sales presentations,” said Marguerita Cheng, CFP, CRPC, CSRIC and RICP with Annuity.org. “Many of them have tried to negotiate with their vacation club and timeshare sponsor to receive more flexibility and predictability of the fees and expenses.”

Retirees who own their home often choose to save up for upgrades or renovations. And while this is fine for those with a clear budget, it can be problematic for those who either allocate too much of their money toward the project — or who don’t prepare enough.

“Retirees often save a significant amount of money for home renovations or upgrades with the idea of creating their dream retirement home,” said Roller. “While it’s important to have a comfortable living space, overspending on renovations can deplete retirement savings and lead to regret if the funds could have been better utilized elsewhere.”

If you’re on the verge of retirement and are thinking about upgrading your home, make sure you have a clear plan and budget in place first.

“[Retirees] don’t necessarily regret purchasing their retirement home or home remodeling,” added Cheng. “They just wish they had been more thoughtful and mindful about design, comfort and safety, especially with flooring in the kitchen and bathroom.”

Owning a luxury vehicle is a dream for many people, but it’s not always what it’s cracked up to be. Cheng noted that some of her clients save up for more expensive cars, like sports vehicles, but end up regretting their purchase due to issues of comfort.

And, of course, cost is a major factor. Sports cars can range from around $28,050 to $171,000. That’s a hefty amount of savings unless someone’s willing to take on a loan, which comes with its own additional costs.

“Some people save excessively with the intention of leaving a large inheritance for their children,” said Roller.

The issue with this is that it can often lead to financial strain upon leaving the workforce — or even before.

Providing for your children is important, but so is prioritizing your needs, desire, and goals. For those who overly focus on their children’s financial security as adults, saving too much can quickly become a regret.

The good news is that, unless you’ve already made a specific purchase, you can always move around some funds and put your money toward other things — things that suit your lifestyle or needs better.

“I don’t think people necessarily regret saving for things, because they can always reallocate those funds to another ’cause’ or ‘expense,'” said Melissa Murphy Pavone, CFP, CDFA, director of investments at Oppenheimer & Co. Inc. “One regret that I see clients experiencing in retirement is not saving enough, not taking into consideration the healthcare costs and not planning for a long enough retirement period.”

Consider your retirement plan and weigh your finances with your expected longevity. Then, make adjustments to your savings, and plan as needed. This can help ensure you have minimal to no regrets when the time comes.