Learning from Americans: Inadequate Savings Emerges as Greatest Financial Regret
Jakarta — Insufficient savings for retirement has emerged as the largest financial regret among Americans. This finding comes from a Bankrate survey of 2,078 respondents in the United States, with participants identifying inadequate retirement saving as their primary financial regret.
“Regret over not saving enough for retirement appears every year, and the numbers grow larger with age,” said Stephen Kates, financial analyst at Bankrate, citing CNBC.com on Sunday, 1 March 2026.
Notably, 43% of respondents admitted they had taken no action to address their financial regrets over the past year.
When asked what could most improve their financial circumstances, Americans cited cheaper necessities, better employment opportunities, lower rental rates, and a recovery in the stock market.
These conditions align substantially with Indonesia’s situation. Data from the Financial Services Authority (OJK) shows that only 76.3% of Indonesia’s population holds bank accounts in formal financial institutions. Meanwhile, approximately 29 million workers are registered as pension fund participants.
If you currently lack adequate emergency and retirement savings, three financial experts have offered advice on improving your financial situation.
“Starting late is better than never starting,” said Jake Martin, a financial adviser from Ohio.
Addressing Financial Regret
Several American financial experts have provided strategies equally relevant for Indonesian society:
1. Extinguish ‘financial fires’ first
Prioritise paying off high-interest debt such as credit cards or informal loans (pinjol). Accumulating interest can consume savings capacity. Another approach to increase savings room is to cut fixed expenses—a strategy that Ashton Lawrence, a financial planner from South Carolina, describes as controlling what can be controlled.
“Identify where money for non-essential spending (discretionary spending) leaks away, whether through dining out, excessive streaming services, forgotten app subscriptions, delivery services, impulse purchases, or an increasingly expensive lifestyle. Every pound you don’t spend is money you can allocate to something more worthwhile,” she said.
2. Build emergency funds covering 3-6 months of living expenses
Emergency funds prevent you from returning to debt when unexpected situations occur, such as job loss or sudden medical expenses. Prepare emergency reserves based on 3-6 months of living costs.
Emergency funds are also crucial in reducing dependence on high-interest debt when unforeseen circumstances arise.
3. Increase retirement savings
After addressing the above two matters, build retirement funds for later life. “Whilst most people target saving 5% to 10% of their income, someone trying to catch up should seek ways to increase their savings portion to 20% to 30%, particularly if they start serious saving in their 40s,” Martin said.
In certain circumstances, you may also need to consider delaying retirement age if you require more time to save.
“The exact amount you need to save will vary depending on a number of factors, including your age and the lifestyle you desire in retirement,” he concluded.