Relative to more general demographics, the more notable differences between those with regrets and those without were related to higher education and health status. Specifically, 58 percent of retirees without major regrets reported having a college degree or higher as compared with 48 percent of retirees with major financial regrets. Similarly, 58 percent of retirees without regrets rated their health as a seven or higher as opposed to 44 July 7, 2022, #439 percent among retirees with major financial regrets. In an open-ended format, we asked all retirees, whether they had major financial regrets or not, what they felt was the one thing they did right in their financial preparation for retirement. Half of retirees (50 percent) reported The Secret Sauce to Retiring Without Financial Regret: saving or investing as the one thing they did right to prepare financially for retirement. In these open-ended responses about saving, many retirees explicitly highlighted maximizing contributions in an employer-sponsored Insights From the Retiree Reflections Survey or individual retirement account. Other top-of-mind positive financial decisions included working with an advisor, spending frugally, paying off debt, and housing choice. The “Retiree Reflections” study examined potential barriers to retirement goal setting and planning as well as regrets relative to past financial behavior among retirees with greater than $50,000 in liquid financial assets. Conclusion While many of the 1,109 retirees surveyed claimed they would change their past financial behavior to improve their current living situation and wished they started saving earlier for retirement, 1 in 3 retirees did not share The secret sauce to a retirement without major financial regrets comes as no surprise: It involves sufficient these major financial regrets. In this Fast Fact, we examine the current characteristics of retirees without major savings, confidence in understanding how to use those savings in retirement, and facility in managing daily financial regrets. In addition, we look at what retirees felt they did right in their financial preparation for expenses. These findings are consistent with those of other sources. The Retirement Confidence Survey finds that retirement — in other words, we sought to understand the secret sauce to retirement without financial regret. more confident retirees are characterized by having greater household savings/investment, saved for retirement, a defined contribution or defined benefit plan, greater household income, and no debt problem. Likewise, EBRI’s Retirees are flagged as not having major financial regrets based on a combination of two questions. Retirees who Spending in Retirement Survey finds that by far the most satisfied retirees were those with high income, high replied “No” to the question “Looking back over your working years, would you have changed anything about assets, and no debt problem (excellent health and having a partner in retirement also factored in). Clearly, your financial habits to improve your current financial situation?” and replied “Neither Disagree nor Agree,” achieving such goals around financial stability are not possible at retirement. So, the real secret sauce to “Somewhat Disagree” or “Strongly Disagree” with the statement “I wish I started planning earlier for my retirement satisfaction is planning well ahead of one’s anticipated retirement date. retirement” are categorized as retirees without major financial regrets. Approximately 1 in 3 (32 percent) fall into this category. The Employee Benefit Research Institute is a private, nonpartisan, and nonprofit research institute based in Washington, D.C., that focuses on health, savings, retirement, and economic security issues. EBRI does not lobby There are some moderate differences in financial behaviors between retirees with major financial regrets and and does not take policy positions. The work of EBRI is made possible by funding from its members and those without. On average, retirees without major financial regrets reported substantially higher liquid financial sponsors, which include a broad range of public and private organizations. For more information, visit assets, with an average of $711,000 (and a median of $450,000) compared with an average of $434,000 (with a www.ebri.org. median of $226,000). Namely, we find that the largest differences in current experiences between retirees without major financial regrets and those with major regrets are the proportions of those who 1) worry about daily expenses, 2) are perceived to be in good or excellent financial condition, and 3) report an ease in understanding EBRI was able to fund the development of this research thanks to generous support from Edelman Financial how to use their retirement savings. Engines. Edelman Financial Engines, LLC is not affiliated with EBRI. Comparing Characteristics of Retirees With No Major Financial Regrets 100% 90% 85% 90% 81% 80% 75% 72% 71% 71% 80% 65% 63% 62% 62% 61% 70% ### 57% 60% 50% 50% 45% 43% 42% 50% 38% 35% 40% 30% 20% 10% 0% Have an Good or Identified Have a Written Used a Easily Rarely Worry Investment Excellent Financial Goals Financial Plan Financial Understood About Daily Portfolio Current for Retirement Advice How to Use Expenses Financial Professional on Retirement Situation Plan Savings Without Major Financial Regrets With Major Financial Regrets Overall EBRI’s on Twitter! @EBRI or http://twitter.com/EBRI EBRI blog: https://ebriorg.wordpress.com/ EBRI on Twitter: @EBRI or http://twitter.com/EBRI Blog: https://ebriorg.wordpress.com/ © 2022, Employee Benefit Research Institute, 901 D St. SW, Suite 802, Washington, DC 20024, 202/659-0670 www.ebri.org 2