A groundbreaking new study reveals that most American adults have financial regrets.
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The most frequently mentioned regret was failing to save for retirement, as indicated by 22% of respondents.
Failing to save enough for emergencies was the second most common financial regret, the survey reported.
Regrets about not saving for retirement advance to the forefront as people's golden years draw near, said Bankrate Chief Financial Analyst Greg McBride of the research results.
He also mentioned that the regrets seen in younger people consistently increased as age advanced.
Indeed, just five percent of Gen Z respondents confirmed they regretted not saving for retirement at an early stage, while 14 percent of millennials, 26 percent of Gen X, and 37 percent of boomers shared the same sentiment.
The second most frequently expressed financial regret reported by the study's findings was not setting aside sufficient funds for unexpected expenses.
Approximately 18 percent of Americans expressed regret over not having a sufficient emergency fund to handle unexpected situations in the survey.
Americans consistently fall short in terms of saving for emergencies, a long-standing predicament that holds strong each year,' McBride said.
Additionally, 40 percent of individuals who expressed financial regret said they've suffered no improvement in their regret over the past 12 months.
People frequently cited high prices fueled by inflation as the primary reason they are unable to save for retirement or for emergency purposes.
Over the past year, the annual pace of inflation has decreased from its 40-year peak in June 2022; however, it remains higher than the Federal Reserve's benchmark rate of 2% per annum.
The second most frequently mentioned reason was their employment situation - encompassing aspects such as their salary or their unemployment status.
McBride noted that even though a majority of Americans are plagued by financial regret, it's not too late to introduce positive changes.
Around 44% of those polled claimed they had made some progress on their regret over the past twelve months, while 16% stated they had made considerable progress.
McBride suggested younger Americans invest in their company's retirement plan and set up automatic payments.
He recommended setting up an automatic transfer from one's checking account into a savings account to start building up an emergency fund.
Implementing these minor adjustments now can help prevent financial regret later, he suggested.
He noted that you can pursue both objectives at the same time,
By automating it, you're essentially putting your income into savings and investments before you've even started your day by getting out of bed.
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