Most baby boomers — those born between 1946 and 1964 — are now in retirement. While many have enjoyed successful careers and comfortable lifestyles, others find themselves in a less-than-ideal financial situation. A common regret among this generation is not saving more for their golden years.
According to Bankrate’s 2024 Financial Regrets survey, 37 percent of baby boomers (ages 60-78) say their biggest financial regret is not saving enough for retirement. Of participants in the survey, it was the most commonly cited regret by far.
By examining the financial regrets and successes of baby boomers, younger generations can learn from their good habits — and steer clear of their bad ones.
5 biggest financial lessons from baby boomers
Here are the five biggest lessons younger generations can learn from baby boomers — and how to implement these good habits into your own life.
1. Start saving early
If boomers could go back and do one thing differently, many would start saving for retirement earlier.
Saving for retirement might not be top of mind when you’re just starting out in your career, but thanks to the power of compound interest, it pays to start early. Every dollar you save today has the potential to grow exponentially over time.
A simple compound interest calculator reveals how small but consistent contributions magnify over the years.
Imagine you start saving when you’re 25 years old. You make an initial $1,000 deposit, and contribution $100 a month for 10 years. You’re earning a 3 percent return in your high-yield savings account that compounds monthly.
In 10 years, you’ll have saved $15,323! Not bad for $100 a month. Now imagine you stretched that timeline to 40 years. When you’re 65, you’ll have $95,921 saved — and only have contributed $49,000.
Now imagine your friend, Mark, starts saving 10 years after you, when he’s 35. He makes the same $1,000 deposit and contributes $100 a month, earning 3 percent interest compounded monthly.
In 30 years, when he’s also 65, he’ll have just $60,730 — less than two-thirds of what you’ve saved — and have contributed $37,000.
That’s the power of compound interest and consistent saving.
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