US Insider studied over 200 senior citizens from different backgrounds who are still in active employment in their 80s. These people lived completely different lives before retirement; some earned a lot, others earned less, some had stable careers, while others didn’t. But today, in retirement, they share one thing in common: they’re actively involved in the labour force at 80, working to make a living. Most of them wish they didn’t have to.
Of course, not everyone working at an older age needs to. Some do it for purpose, passion, or to keep busy. But many are working because of financial mistakes made along the way; mistakes we, the younger generations of today can learn from while we still have time to change our stories. Their stories moved me so much, that I summarized some of the key lessons we can learn from their lived financial experiences in this post:
- An emergency fund can save your future
One man in the video had a great career and earned good money, but on two occasions in his career, he was retrenched. Each time, he had no emergency savings, so he needed to cash out his retirement savings to survive without work. Those withdrawals were necessary in the moment but cost him decades of compound growth.
For us looking forward, this is preventable. An emergency fund is not just a “good idea”; it’s a buffer between you and situations or decisions that can damage your financial future. Life will always throw surprises, so having emergency savings keeps those from becoming disasters.
- Build your financial knowledge
A common phrase I observed from the people interviewed was: “I didn’t know.”
This alone shows why financial literacy matters. Now, research views financial literacy beyond head knowledge, so just reading or engaging financial content is not enough. I strongly believe that it highly depends on the application of that knowledge. We live in an era flooded with information, so much that simply feeling “familiar” with the knowledge of something can gives us a false confidence of familiarity. But wisdom is the application of knowledge, not just in the exposure to it.
One of the gentleman interviewed shared how he panicked during a market downturn and sold all his investments at the worst possible time, a mistake he still regrets. This is called timing the market, and even long-term investors who know better fall into this trap out of fear. Learning is one thing; trusting the process is another.
- Be careful with bad debt
Travel is beautiful and a life full of memories is valued by many of us. But debt-funded travel might rear an ugly head later. Borrowing money for experiences may feel rewarding now, but future-you will pay the price. As I’ve shared in this previous blogpost, the kind of debt you should tolerate is the one that brings a return; not memories that could become expensive regrets later.
- Boundaries are for your protection
Lending people large amounts of money without contracts is not generosity; it’s financial self-sabotage. Do not lend away your capital (money that you could use to grow and invest) to people who may never return it. Be kind but be smart. If you can’t afford to lose it, let people go to financial institutions that lend money for a living. It’s important to remember that boundaries are not walls but gates that protect you from future heartbreak and financial strain. Please apply them. Boundaries apply to many other situations besides borrowing. I once heard this beautiful advice that I think we must all apply: Do not set yourself on fire in your effort to keep others warm.
- Other lessons they shared
Many of the people interviewed also reflected on the regrets that didn’t fit into significant themes to stand on their own but still carry a lot of weight. These mistakes may seem small, but they compound over time, just like money does. Here are some of the mentioned regrets that stood out to me:
- Not growing in their careers, leading to unfulfilled potential and, financially not growing income over time.
- Some people regret not seeking financial planning advice, while
- Many wish they had started investing much earlier.
These stories remind us that retirement doesn’t just happen to “old people”; it happens to every one of us, one day at a time. Because these people were once younger, living lives similar in various ways to where we are today. Each of these lessons seems simple but powerful: keep learning, keep moving forward in your career, get guidance when you need it, and start investing as early as you can. Do something. Start small. Start today. The sooner we prepare, the softer our landing will be. Future-you will thank you for doing the small things consistently.
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