With 15 days left of 2024, American workers are reflecting on their financial wellbeing and setting resolutions for the new year.
Nationwide’s latest Protected Retirement Survey found that a growing number of workers are coming to terms with past financial oversights, as 82% of employees over the age of 45 wish they had sought advice on retirement savings when they were younger.
Employees also regret not understanding the importance of compounding interest sooner or taking retirement more seriously when they were younger.
Still, Nationwide’s research encourages workers to turn their financial regrets to successful resolutions. The first way is to begin saving as soon as possible, no matter the size of the contribution.
“Starting small—like increasing retirement contributions by just a percent or setting aside a little more in savings each month—can lead to meaningful progress over time,” said Suzanne Ricklin, vice president of retirement solutions at Nationwide Financial. “These small financial changes are easier to stick with and thanks to the power of compounding interest, even small steps can have a significant impact on your future.”
Prioritizing retirement savings was also ranked as one of the key financial lessons from older workers today. Seventy-six percent of workers over aged 45 wish they had started saving earlier.
Other top lessons include maximizing employer matches, building an emergency savings fund, paying down debt, and taking advantage of employer-sponsored features.
Working with a financial advisor is also another significant milestone for many—and one that can lessen overwhelming feelings when saving and planning for retirement, Nationwide reports. American workers today report challenges in determining how long their savings should last (61%), how to maximize benefits (57%), turning retirement savings into stable income (55%), and understanding the amount to save in order to reach their goals (55%).
“A financial professional can simplify the process, provide answers to your most pressing questions, and create a plan tailored to your goals and timeline, giving you confidence to take control of your financial future,” said Ricklin.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
