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While everyone has a different path to retirement, the ultimate goal is the same: financial freedom and a life of enjoyment. But not all plans work out and some retirees miss out on lessons they wish they had learned earlier.
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As a result, some are forced to work part-time, while others live on a tight budget, take on debt or take on extra work. Perspective is powerful and retirees are sharing the mistakes they made — and why they’re warning others not to repeat them.
Retire without mortgage or car payments
It is not easy to live on a fixed income. The average Social Security payment per month in 2026 is $2,071, according to social Security Administration. For those who are dependent on it alone, it may be difficult to manage the monthly expenses. One way to grow your money is to pay off your house and car before retirement – that’s what 72-year-old Judy Shaw has learned.
“Unless you have a trust fund or a 401(k), most Social Security typically pays out about $4,000 a month. If you have a mortgage or a large car payment, with taxes and insurance, it’s very difficult to live on that,” she said. “I advise people to please pay off their house and car before they retire.”
Relying only on Social Security
These days, Social Security alone won’t cover all your costs. According to , by 2024, the average annual spending for people 65 and older is $61,432. Federal Reserve Bank of St. LouisThat’s why many retirees need other revenue streams – another thing Shaw quickly realized.
To help cover expenses and build a better home, Shaw partnered with a friend and bought cheap houses to flip or rent.
“Just retiring on Social Security was not enough,” he said. “At one time, we had 10 rentals, which was a bit much, but we kept getting good deals. Eventually we sold them all and that’s how I’m able to live comfortably now,” she said.
Entering Retirement With High Credit Card Debt
Andrew Reichek, an AWS and developer operations engineer NeoyatechNot fully retired yet, but he plans to retire soon. In her 50s, due to lifestyle choices and business-related costs, Recheck accumulated nearly $40,000 in high-interest credit card debt over 10 years.
“I was only paying the minimum monthly amount without thinking about how high the interest could rise,” he said. The debt took a major toll on his retirement savings and took him years to pay off.
“I had to restructure my finances, create a strict budget, prioritize high-interest balances first, cut unnecessary expenses and commit to paying more than the minimum every month,” he explained.
Recheck admits he underestimated how quickly the interest would add up, but he has since adopted a new credit card policy, which he stands by.
“I pay off the dues in full every month and I also have a strict budget,” he said. “Plus, by staying away from high-interest loans, I am not only able to save more money, but also have confidence in my retirement.”
Financial mishaps happen to everyone, but when preparing for retirement, the stakes are much higher and the margin for error is less. The key takeaway is to learn from these mistakes as quickly as possible and create a carefully crafted retirement plan that avoids costly regrets.