Retirees Would Give These 3 Pieces of Advice to Their Younger Selves, and They're Worth Listening To

You don't have to look far to find advice on retirement planning, but not all advice is good. For example, market news coverage and Wall Street analysts might tempt you to bet big on what they believe is next stock that's going to explode in popularity, but this is a high-risk strategy. Instead, the things that make the biggest difference to your retirement security are often the basics.

A recent Nationwide survey of Americans aged 60 to 65 revealed some of the most common pieces of retirement advice that people wish they could give their younger selves. Here are three of the top responses.

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1. Start saving and planning early

Starting with the most popular answer by far, 63% of those surveyed said they would tell their younger selves to begin saving early. This makes sense because the earlier you start saving for retirement, the easier your task becomes.

Let's say you hope to retire at 65 with $2 million, and you expect to earn an 8% average annual rate of return on your investments. The following table shows how much you'd have to save per month -- and overall -- to reach your goal, depending on your age when you began saving.

Calculations by author.

As you can see, the later you start saving, the more money you have to personally contribute for retirement because your investments don't have as much time to grow.

That said, it's not always easy to find money to earmark for retirement, especially when you're just starting out in your career. But even if you can only spare a few dollars per month, it still makes a difference by helping you build the habit. Start with what you can afford and aim to increase your retirement contributions each year or whenever your financial circumstances permit.

2. Don't live above your means

About a third of survey respondents wish they could tell their younger selves not to live beyond their means. Doing so puts you at risk of incurring costly debt, and it also brings a lot of financial stress.

Obviously, we all need to prioritize our essential bills: a rent or mortgage payment, insurance, groceries, and utilities. But with these out of the way, try to allot a portion of any money left over for retirement. Then, you can spend any remaining funds on wants or other goals.

If you're struggling to do this, it might help to create a budget. You could go the traditional pen and paper route, use a spreadsheet, or try a budgeting app. The apps are designed to do a lot of the math and analysis for you as they can break your spending down by category to help identify where you might want to cut back.

3. Max out contributions to your retirement plan

Maxing out contributions to your retirement accounts can help you increase your retirement readiness quickly, which explains why 23% of people in the survey would give this advice.

However, it's often easier said than done. IRAs enable you to set aside $7,000 in 2024 ($8,000 if you're 50 or older). 401(k)s allow you to save up to a whopping $23,000 this year, or $30,000 if you're 50 or older.

If setting a goal like this motivates you to save, by all means, go for it. But it's OK if you can't pull it off. Remember that making regular contributions of whatever you can afford is what matters. Do so as early as possible, and you can still grow your savings significantly over time.

Those who plan to max out their retirement accounts should be aware that contribution limits change year to year. In particular, you become eligible for catch-up contributions in the year you turn 50. Stay up to date on these changes so you don't miss out on the opportunity to set aside more for retirement.

Even following the steps above, saving enough for a decades-long retirement isn't easy. It's important not to be too hard on yourself. Do your best and adjust your retirement strategy as needed.