Nearly half of Americans aged 60 and older can't afford their daily needs, the National Council on Aging estimates. Over 3,800 older Americans reached out to Business Insider to share their financial regrets and the lessons they wish they had learned earlier. Six shared advice on saving, investing, and preparing for retirement.
Getty Images; Jenny Chang-Rodriguez/BI
Joshua Winston, 70, did a pretty good job preparing for retirement: He ran two successful veterinary clinics, made smart investments, and lived frugally.
But a week after he retired in May, he was diagnosed with cancer. Now, Winston said, he regrets working such long hours during his career, often missing out on trips and date nights.
Winston is one of a few dozen respondents to an informal Business Insider survey who said they worked too hard during their careers or focused too much on saving for retirement, sacrificing family time, travel, or other leisure activities when they were younger. They're among the more thanΒ 3,600 older Americans whoΒ shared their life regrets through surveys or direct emails to reporters. This story is part of an ongoing series.
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Some survey respondents thought they were behind on retirement goals and chose to bypass larger purchases, only to realize they were well-prepared and too cautious about getting there. A few said traumatic experiences, such as the death of a loved one or a catastrophic medical diagnosis, made them anxious about saving money in case of another emergency. Interviews with five Americans who thought they were too frugal point to the difficulties of knowing how to best prepare for retirement.
Dylan Tyson, the president of retirement strategies at Prudential Financial, described the mindset of an oversaver: "You're cutting back on living β not taking that extra trip or going to that concert or ball game with family and friends β because you're worried that you don't have enough saved."
Winston, who lives in Arizona, spent much of his career in veterinary work. Throughout his life, he drove modest vehicles, lived in an upper-middle-class house, and was cautious about making larger purchases.
He retired with about $3 million but wished he'd spent some of that money on an assistant for his practice so he wouldn't need to work nights running an emergency vet helpline.
Joshua Winston
"That sucked up a lot of oxygen in my life. I never could watch a movie when I went out with my wife because I would get a dozen phone calls," Winston said, though he acknowledged the helpline helped make his practice successful.
He planned to spend some of his savings in retirement, but he was diagnosed with lung cancer in May and said life has "been hell" since then.
"I have enough money to live until 95 and go on vacations. I have a whole life ahead of me, and this is what happens," Winston said. "I have cancer, and I may not even enjoy the money I worked hard to save."
Tyson said that while a lot of retirement is "guesswork," people should try to determine how much lifetime income they'll need to achieve their retirement goals while balancing their spending needs, wants, and wishes.
"With millions of Americans facing uncertainty, we see the smartest of them taking action to create financial plans that focus squarely on the things that matter most," Tyson said. "Then they are protecting those goals by ensuring that they have secure, predictable income to fund their retirement needs and wants β freeing them to worry less and pursue their greatest wishes."
Ruth Mills, 63, said she began saving later in life but amassed seven figures through frugal living and careful investing. The Minnesota resident had children in her early 20s and finances were tight. As a single mom, she held multiple jobs, working odd jobs as a part-time in-home personal care assistant in addition to full-time work. She worked her way up to a senior accounting officer for the state.
She said because she worked so much and cared for her children alone, she missed opportunities to go out with friends or travel more with family. She said a part of her wished she'd forgone some savings so she could have worked one less job or had hobbies.
Ruth Mills
"I did well saving for retirement, but so much so I was too frugal along the way and did not enjoy as much while younger as I worked too much," Mills said.
Mills said she pushed back a trip to Ireland that she's no longer physically equipped to take. She recently downsized her house and hopes to retire soon and use her retirement years to spoil her grandchildren and have an active lifestyle.
"Having all the money in the world is great, and I don't have that, but if you don't have the friends and people to spend it with at the end, it's a trade-off," Mills said. She added, "Having made the necessary sacrifices to save and invest earlier, I am looking forward to having the financial security to be able to afford the basic necessities and share adventures and experiences with the grandkids."
Ryan Viktorin, a financial consultant and CFP at Fidelity, said she sees three categories of "oversavers": people who experience an unfortunate event that keeps them from spending the money they've saved, people who worry they'll never have enough because of healthcare costs or market volatility, and people who continue working because they haven't mentally prepared for retirement, fearing it's monotonous or isolating.
She also said that baby boomers retiring now grew up hearing stories about their parents or grandparents going through the Great Depression.
"Sometimes I hear from my clients who have saved really well who say it's in their bones to continue to be frugal, and they feel like they can't really enjoy themselves or live their lives because they have to keep saving," she said.
Kirk, 75, said he didn't realize he was doing such a good job of preparing for retirement. The retired California attorney, who asked to use only his first name for privacy concerns, worked for various financial institutions and maxed out his 401(k). He amassed over $1.1 million in tax-deferred retirement savings. However, he feared an emergency or market crash would derail his plans for a comfortable retirement.
After retiring from his full-time job at 67, he realized there were opportunities he missed out on because he held back on spending. He regrets not going on a weekslong trip to France with his brother in his 60s; now, his brother has cognitive challenges that make travel difficult. On a trip to Hawaii, he signed his two children up for a helicopter tour but didn't go himself to save money.
"It would have been a great experience to have shared with them and talked about for years to come," Kirk said. "I could now pay for a dozen helicopter rides and not miss the money."
Viktorin said it's important to look at the gap between expenses and income and figure out where there's some wiggle room in your budget beyond saving for retirement, which may help alleviate some of these anxieties older Americans have.
"When you build out a financial plan, you can build out the 'what ifs' and see what it looks like," Viktorin said. "What if we took an extra trip and spent more money? What if we flew business class rather than coach or economy? What if we started to help our children more?"
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Getty Images; Jenny Chang-Rodriguez/BI
For many people, raising children is the most fulfilling aspect of their lives. But dozens of older US parents told Business Insider that knowing what they know now, they might have made different financial decisions.
Since mid-September, over 3,400 Americans ages 48 to 96 have responded to Business Insider reader surveys or emailed reporters about their life regrets. One survey included the question "What advice would you give someone trying to decide when β or if β they have children?"
Hundreds of respondents said they had children when they were too young and financially unstable, delayed their career to raise a family, or spent too much or too little on their kids. Many said their decisions as young parents had lasting effects. Though many more mothers shared their parenting regrets than fathers, both shared very similar parenting regrets.
It's not all bad, though. ManyΒ parents said theirΒ financialΒ and professionalΒ sacrificesΒ were worth it to build strong relationships with their children. Others saidΒ that they did the best they could but that some parenting costs were unavoidable.
All of them stressed that despite having some financial or professional regrets, they love their children and had few regrets about how they raised them.
BI identified five common financial parenting regrets and interviewed seven parents. This story is part of an ongoing series.
We want to hear from you. Are you an older American with any life regrets you'd be comfortable sharing with a reporter? Please fill out this quick form.
Many respondents said they wished they had waited to have a baby until they were more financially stable. The high costs of childcare and housing made it difficult for some parents to set aside savings for emergencies or retirement, especially early in their careers. An analysis by Northwestern Mutual last year found that the average cost to raise a child until age 18 wasΒ about $300,000.
Judy Taylor, 72, told BI she loves her children but regretted having them in her early 20s. Taylor, who lives in Georgia, said she and her husband weren't established enough professionally to afford children and build savings for retirement. When they divorced after 16 years, Taylor shouldered additional costs as a single parent.
Taylor said she had little savings left and relied on slightly over $2,000 in monthly Social Security. If she missed a check, she'd be "dead in the water," she said.
"Babies are so precious," Taylor said. "But having another life to be responsible for can be overwhelming. Just be sure you're ready for that."
Jessica Douieb, the head of wealth partners at JPMorgan, advised that families build a wealth plan focused on short- and long-term goals that factors in education, tax planning, cash-flow management, investments, charitable giving, insurance, and estate planning.
"A frequent misstep is failing to plan for the long term," Douieb said. "In many cases, having children can delay retirement, requiring parents to work longer to support their children, which can affect financial security in later years."
Roxanne Lewis, 61, a mental-health case manager, relied on child support and food stamps to pay her bills as a single mother, though she later remarried and held stable jobs. She said she wished she'd had a nest egg and an established career before having the first of her seven children.
Roxanne Lewis
"When I was younger, I didn't think about retirement," Lewis said. "It was mainly about getting the bills paid, making sure the children had clothes and food. It wasn't even a thought in my mind, and nobody had ever mentioned it."
Lewis, who lives in East Texas, said she didn't often speak with them about retirement savings. She intends to work until 67, and while her finances improved after a raise in 2022, she's worried about how retirement may look with a few thousand dollars in the bank.
"I wish that I spent more time with my kids," Lewis said. "Money was a big thing for me, focusing on having enough money so they had what they needed, so I was always stressed."
A few dozen respondents said that while they felt that many of their financial investments in their children were worth it, they regretted spoiling their children β such as buying them a car when finances were tight β or not encouraging them to become financially independent. A few said they were burdened by letting their children live with them after college or stay on their insurance plans.
Douieb said parents who want to be generous with their children should prioritize nurturing their confidence and self-esteem over materially rewarding them.
"I cannot emphasize enough the importance of having ongoing, open discussions about money, reinforcing values like responsibility and self-sufficiency," Douieb said. "When they reach the right age, teaching children about saving, investing, and planning can help them become financially literate and independent, which will help them in the long run."
Several respondents said divorce and single parenting affected their retirement plans. Some said they struggled to support a family without a second income or with limited child support, while others said being a stay-at-home parent meant they didn't have much savings after a divorce.
A BI analysis of 2023 individual-level census data found that divorced people had lower average 401(k) balances, less savings, and a more limited monthly retirement income than married people. It also found that just 38% of divorced people had a retirement account.
Nina Teasley, 65, lives on less than $2,000 in Social Security in Bethesda, Maryland. Teasley, a mom of four, was a stay-at-home mom for most of her adult life but divorced about 25 years ago. Though Teasley's children are now adults, she said she still felt the financial impact of her divorce.
Teasley said that while being so present in her children's lives was wonderful, she had no savings or retirement plan. When she and her husband split, Teasley took a customer-service job to support herself and her children, but the income wasn't enough to build a nest egg. Now Teasley isn't sure she can fully retire and worries about becoming a financial burden on her adult children.
"I thought I would be married forever," Teasley said. "I married a man who wanted to take care of me and the kids. But I wish I had not let that be. I wish I had decided to go to work and stay at work."
Michelle Patello, a vice president and wealth-management advisor at TIAA, said that there isn't one single approach to raising children after a divorce and that splitting expenses equally isn't always the answer.
"It's important to consider the different income levels when splitting costs," she said.
The Pew Research Center found in 2023 that about four in five stay-at-home parents were women. Spending time outside the workforce to raise children meant many moms had less income to build savings and lower Social Security checks.
Older Americans' monthly Social Security income is based on the years they spent in the workforce. Stay-at-home parents' time spent raising children isn't counted toward their retirement benefit.
Wendy DeBord
Wendy DeBord, 73, said she returned to work too late after having her children. DeBord, who lives in Toledo, Ohio, had her first child at 23 and had two more by 28. For 12 years she was a stay-at-home mom and ran a day care at her house. At 45, with little work experience, she took a job as a receptionist at an orthodontist's office. She worked her way up to becoming a public-relations coordinator.
"When I entered the workforce at age 45, I had to start on the bottom rung, so I barely made it to the middle of the ladder by age 70," DeBord said, adding she had a divorce at 50 that hurt her retirement planning.
She said that staying home with her children still felt like the right move, and she cherished watching them grow up. But she said that she started building her 401(k) late and that she reached $300,000 in savings, which she described as sufficient, at 70. She gets about $2,000 monthly in Social Security, which she claimed at 70.
Douieb stressed that stay-at-home-parenting considerations go beyond a parent's finances.
"A child's financial future will be more determined by instilling strong values around money management and savings from an early age," Douieb said. "Parents can create a nurturing environment where financial literacy is emphasized, teaching children the importance of budgeting, investing, and responsible spending."
Though many older parents said they regretted how they handled finances while raising a family, few said they regretted having children. "Every parent wants their child to have a better life than they did β he is the one thing I did right," one survey respondent wrote.
Others said they were happily child-free. "I have no children and no regrets," one person said.
Christopher Gilbert, 61, said he helped raise his nephew but might have been more fulfilled if he had raised children of his own, even with the financial burden. He said he couldn't start a family because of laws banning same-sex marriage, which became fully legal in the US in 2015.
Now gay people "can get married and have kids," Gilbert said, "but that came a little bit late for me."
Gilbert, who lives in Bradenton, Florida, said that while he had some retirement savings, he planned to work his job at a convenience store for as long as possible because it keeps him active and social.
Patello said that Americans should proactively plan for retirement regardless of whether they're parents. "The earlier, the better," Patello said. Even reducing your contributions but continuing to save can make all the difference for you and your family."
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I am 67 years old and when people ask me if I've retired yet, my knee jerk response is, "No I haven't! What's retirement?"
I am a Psychologist, was formerly a teacher, and have worked and paid taxes all my life. I am well paid for the work that I do. I have paid my mortgage off and have no outstanding debts. In spite of this, I am now faced with the prospect of living on a state pension, which is just not possible, continuing to work or, as I have now decided, selling up and moving 200 miles away from my only granddaughter so I can live in a location where house prices are lower and I can afford to work less.
It didn't start out this way. I once imagined that somehow I would make such a success of my life that I would be able to retire at 50 or younger, enjoying being a lady that lunches, going on cruises, and doing the odd spot of volunteer work. But I didn't actually have a plan.
I started my working life as a teacher, got married at 30 then found myself to be a lone parent when my children were 2 and 5, with no family support. I was not well advised and ended up with the children, the mortgage, no pension, and an ex-husband who tried his best not to pay anything at all.
Around that time I decided I needed a career change, and started to train as a Psychologist, a long and very expensive process. I'm not quite sure how I did it, but I managed to work, study, and raise children β all on my own.
I was proud of what I accomplished, but had nothing at all in the way of savings; life was a constant struggle to make ends meet. I still did what I could and at 40 I started to pay Β£100 (about $127 USD) a month into a private pension. Now I know that I was badly advised and if I were to take it, this would only pay me around Β£1,500 (about $1,905 USD) per year βnowhere near what I would need to live on.
The obvious question is, why didn't I pay into the teacher's pension offered to me earlier in my career? Why indeed.
Not taking advantage of this is one of my greatest regrets. But when I was in my early 20s we didn't have any financial education. Even the teachers' unions didn't send out advice about pensions. To me, it just seemed like a large monthly outgoing from an already meagre salary, so I opted out and didn't give it another thought. Now I know that money would have made a big difference. Hindsight is a wonderful thing.
I realized around 5 years ago that the only way I could even contemplate retirement would be to downsize and move to a cheaper area in order to have a reasonably substantial nest egg to help me eke out my twilight years. Most of the advice I have read claims that to have a comfortable retirement where I live, one needs a gross annual income of around Β£40,000 (around $50,802 USD). I have calculated that with my state pension, bits and pieces for my writing, and interest on the surplus when I move, to reach that Β£40,000 I will still need to work at least one day a week. Not perfect, but a lot better than the five days I have been working.
With this in mind, I put my house on the market. Then my eldest daughter, who lives nearby, announced that she was pregnant. Fantastic as that was, I could no longer imagine moving away, so I carried on working five days.
I'm now more than a year past the typical retirement age and most of my friends seem to be enjoying a fruitful, active retirement. Meanwhile, I'm becoming more and more exhausted, suffering from frequent low-level infections, and becoming increasingly resentful.
Now, my house is back on the market. I will be moving to Derbyshire, where my younger daughter lives and where house prices are around half of those where I live now.
It will be a massive wrench, especially leaving my granddaughter, but I need to do it while I'm still fit and healthy. I have lived in my current house for 38 years and expected to leave it in a box. I've worked out a solution, although not ideal. I will have enough income to work one day a week, more time to focus on my passions, I'll be able to travel and get involved in the local community and still be able to visit my granddaughter every 6 weeks or so.
My advice to young people now? However distant it seems, don't leave it to chance. Make a retirement plan and start paying as much as you can into a good pension. The years fly by and it will be here before you know it.
Getty Images; Jenny Chang-Rodriguez.BI
Taffi Ozenne has a few simple and inexpensive joys in her life.
When she feels lonely, she counts them: a hot-fudge sundae at McDonald's ($3.79), a walk with her dogs (free), and the first puff of her cigarette ($9.63 for a pack) on a sunny afternoon in northern California. The 68-year-old repeats the list over and over.
"In those moments where I'm wishing I had a friend that I could do something with, I just gravitate toward my dogs and say, oh, I got two friends right here β let's go for a walk," she said.
Since mid-September, more than 3,300 older Americans like Ozenne have shared their retirement regrets with Business Insider through a reader survey or direct emails to reporters. Loneliness is a common theme.
Some said they regretted not saving more, as a lack of money makes it difficult to maintain a social life. Many said they struggled to ask friends and family for help, further isolating them from loved ones. For an older generation already facing a loneliness crisis, money woes are making it worse. This story is part of an ongoing series.
With no retirement savings, Ozenne is trying to get by on her $1,739 monthly Social Security payments and the money she cobbles together through part-time jobs at a law firm and a bowling alley. She said her schedule feels nonstop but she needs the work so that her total monthly income is slightly above $3,000, enough to cover her bills.
Ozenne said that her budget didn't allow her to travel or go out with friends and that she felt increasingly isolated. She said she regretted not saving enough to support herself in her 60s or 70s and worries she'll have no one to care for her as she ages.
"It's mentally exhausting," she said, adding, "I don't want to be a burden to anyone."
We want to hear from you. Are you an older American with any life regrets you'd be comfortable sharing with a reporter? Please fill out this quick form.
In a survey of US adults commissioned by Cigna and conducted by Morning Consult in late 2021, 63% of respondents who earned less than $50,000 a year and 41% of respondents over 66 said they felt consistently lonely.
Having limited incomeΒ can erode social connections for older adults. Social Security checks aren't enough to cover many retirees' bills, and some don't have enough of a nest egg to afford a night out, holiday gifts, or gas to visit family members. Meanwhile, the costs of meals, flights, and concert tickets have crept up.
"My 'golden years' are not golden at all: I live alone and have no friends," one respondent in BI's survey wrote. Another wrote, "I feel hopeless, I'm lonely, and my health is rapidly getting worse."
Joseph Coughlin, the founder and director of the AgeLab at the Massachusetts Institute of Technology, said that high costs of social activities, housing, and transportation could lead to social challenges for retirees.
"If you do not have the financial resources, you're pretty much constrained where you live," he said. "You may not be able to afford a place that gives you the opportunity for those chance collisions with friends and, frankly, new people."
Susan Harper lives on less than $1,000 in monthly Social Security, plus SNAP benefits, but she has no nest egg or investments. The 66-year-old recently moved from Oregon to Washington, DC, to live with her sister. They're sharing household bills until Harper can secure low-income housing in the area. (Harper is on a waitlist.) Harper said that while she appreciated her sister, she missed her community. She said she often declined invitations from new friends to go to bars or restaurants because of the cost.
Harper said that while she needed to move to receive financial support from her sister, living in a new city had made her lonely.
"It's just a very difficult time, and it's very isolating," she said. "Especially as I get older."
In the University of Michigan's National Poll on Healthy Aging conducted in March, older adults who weren't working, who lived alone, or who had lower household incomes were more likely to report feeling lonely. About 29% of adults 50 to 80 reported feeling isolated from others some of the time or often within the past year.
Coughlin said social isolation could exacerbate the risk of cognitive and physical decline for older adults, which may increase the likelihood that they need assisted care later in life. Genworth Financial, an insurance company, found that the median monthly cost of an assisted living facility in the US was $5,350 in 2023 β a price many older Americans told BI they couldn't afford.
John Keefe, 84, lives alone in Arkansas on his $2,700 monthly Social Security check and limited retirement savings. Keefe lost his son in 2011 and his wife in 2023. He said they were his main support system.
Keefe said he didn't travel much outside his hometown, and he worries about how he'll take care of himself when he can no longer drive to appointments or the grocery store. He said he wished that he and his wife had built a stronger financial cushion.
"I've outlived everybody," he said, adding that it was especially challenging to make connections as a widowed retiree.
Though there's no one-size-fits-all fix for loneliness, Coughlin offered a few suggestions. He said prospective retirees should think about "longevity planning." In addition to building a nest egg, he said, arranging the social aspects of retirement earlier in life β such as living near friends and family and developing hobbies βΒ could reduce the risk of loneliness later and help people budget.
"Yes, it's about how much money you've saved β but it's also about all those other little things that make you smile and contribute to quality of life," he said. "That has to be planned as much as your 401(k) or whether you had your annual checkup."
Government and local assistance can also be a source of relief for older Americans struggling with finances and loneliness. The National Council on Aging estimates that 9 million older adults who are eligible for SNAP benefits don't receive them, and many forgo aid like Medicare Savings Programs designed to help pay for healthcare and other expenses. Many local senior centers offer free or low-cost social activities, transportation, and benefits counseling.
Ozenne is taking her life day by day. Because she works several jobs, her income is likely too high to qualify her for many forms of government assistance. So she sits at her kitchen table working on her monthly budget, and she stops by McDonald's for a hot-fudge sundae if she needs a pick-me-up. Her days still feel lonely, but she tries to "put on a brave face," she said. It helps to know she isn't the only one in this position.
"There are a lot of people β we're laying in bed awake at night wondering if we're going to make it through this month and if we're going to have enough money to pay bills," she said. "And if not, we wonder: What can give? What can I do without?"
Noah Sheidlower contributed reporting.
Are you experiencing loneliness because of your finances? Are you open to sharing your story with a reporter? If so, reach out to [email protected].
Juan Moyano/Getty Images
I was with my four kids on the playground one day, talking with the other moms. We were chatting about school, work, and tiptoeing around the subject of finances.
One of the moms mentioned saving for college, and it felt like cold water was poured on me. I had a vague idea about tax-advantaged college savings plans; our diligent financial advisor had surely discussed them in one of our meetings. But the numbers β the 529s, 401ks, and 403bs β all swam together in my head.
However, I was confronted by the fact that someone else with small children was already planning for college. I felt like we had just started saving for retirement, and now I had to start thinking about another future β four of them.
Did I have to start worrying about this already? If I wanted to be anywhere close to ready when they graduated from high school, I did.
That was years ago, and now that college is here, I'm worried we'll never have enough.
My parents remortgaged their house to pay for my college. While I hope it doesn't come to that, my family is in a difficult situation. My husband and I make too much money for grants. I am a freelance writer, picking up as many gigs as I can, and my husband is a small-business owner.
After the pandemic and online school, all of my kids' grades plummeted while their anxiety skyrocketed, so scholarships are not an option for them.
I also knew that I wanted my kids to leave college without any student loan debt that they'd be paying off for the next 20 years.
That meant college tuition fell on my husband and me. In two years, we'll have two college tuitions to pay. In the next seven years, we will be paying for all four of my kids to go to college.
Shortly after that mom's group, I called my advisor, and we started college savings plans for each kid. We have been saving since my college freshman was in first grade.
We automatically withdraw $100 a month for each kid, which is $400 a month out of the budget. That's no chump change, but it's not even close to enough.
We saved $1,200 a year per kid for nearly 12 years. That's not even enough for one year of tuition, books, and room and board.
My oldest son started school in September. We saved $14,400 for him and used our state's 529 plan, so it was invested and grew to a little over $20,000. He attends an in-state public school, and those savings still weren't enough.
He works in the summer and on breaks to help with costs. For the remaining amount, my husband and I squeeze it out of our budget. We're on a payment plan, so it's broken up β $3,300 a month rather than $13,200 all at once at the beginning of the semester.
Education is a core value in my family. Going to college will afford my kids so many opportunities. Thankfully, my son is thriving at school. Despite the expense, despite my feelings of overwhelm, I still think it's worth going. He's happy, and he's learning a lot β both in his classes and about himself.
The finances aren't his concern right now. My husband's business is doing great, and I'm taking on more writing gigs and a couple of side hustles. There will be vacations closer to home, and the new bathroom that I've wanted for a while won't happen.
We will get through these next 10 years; we will just keep our heads down and pay the bills as they come in.
When the overwhelm starts to kick in again, I check my son's texts. The smiling photos with his college roommates and the video of his rugby club remind me all this is worth it.
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All eyes are watching to see whether the Federal Reserve will cut interest rates for the third time in a row this week, meaning the clock is ticking on the high interest rates on deposits that we've come to expect. With rates rapidly changing, how can you be sure that you're getting the best interest rate?
We monitor rates from banks and credit unions daily to help you feel confident before you open a new account β and now could be a great time to lock in a high rate before APYs go off a cliff. Here are the top rates for popular banks on Wednesday, December 18.
High-yield savings accounts aren't the only accounts paying favorable rates right now. You'll typically see the highest rates at online or lower-profile institutions rather than national brands with a significant brick-and-mortar presence. This is normal; online banks have lower overhead costs and are willing to pay high rates to attract new customers.
The best high-yield savings accounts provide the security of a savings account with the added bonus of a high APY. Savings accounts are held at a bank or credit union β not invested through a brokerage account β and are best for saving cash in pursuit of shorter-term goals, like a vacation or big purchase.Β
The best high-yield checking accounts tend to pay slightly lower rates than high-yield savings, but even they are strong in today's rate environment. A checking account is like a hub for your money: If your paycheck is direct deposited, it's typically to a checking account. If you transfer money to pay a bill, you typically do it from a checking account. Checking accounts are used for everyday spending and usually come with checks and/or debit cards to make that easy.
The best money market accounts could be considered a middle ground between checking and savings: They are used for saving money but typically provide easy access to your account through checks or a debit card. They usually offer a tiered interest rate depending on your balance.
A cash management account is also like a savings/checking hybrid. You'll generally see them offered by online banks, and, unlike a checking account, they usually offer unlimited transfers. A savings account often limits the number of monthly transfers, while a checking account doesn't. Cash management accounts typically come with a debit card for easy access, but you may have to pay a fee if you want to deposit cash.
The best CD rates may outpace any of the other accounts we've described above. That's because a certificate of deposit requires you to "lock in" your money for a predetermined amount of time ranging from three months to five years. To retrieve it before then, you'll pay a penalty (unless you opt for one of the best no-penalty CDs). The longer you'll let the bank hold your money, the higher rate you'll get. CD rates aren't variable; the rate you get upon depositing your money is the rate you'll get for the length of your term.
Locking your money into an account in exchange for a higher interest rate can be a big decision. Here's what you need to know about common CD terms.
Most CDs charge you a fee if you need to withdraw money from your account before the term ends. But with a no-penalty CD, you won't have to pay an early withdrawal penalty. The best no-penalty CDs will offer rates slightly higher than the best high-yield savings accounts, and can offer a substantially improved interest rate over traditional brick-and-mortar savings accounts.
The best 6-month CDs are offering interest rates in the mid-5% range. Six-month CDs are best for those who are looking for elevated rates on their savings for short-term gains, but are uncomfortable having limited access to their cash in the long term. These can be a good option for those who may just be getting started with saving, or who don't have a large emergency fund for unexpected expenses.
The best 1-year CDs tend to offer some of the top CD rates, and are a popular option for many investors. A 1-year term can be an attractive option for someone building a CD ladder, or for someone who has a reasonable cash safety net but is still concerned about long-term expenses.Β
The best 2-year CD rates will be slightly lower than 1-year and no-penalty CD rates. In exchange for a longer lock-in period, investors receive a long-term commitment for a specific rate. These are best used as part of a CD ladder strategy, or for those worried about a declining rate market in the foreseeable future.
The best 3-year CDs tend to have rates that are comparable to 2-year CDs. These are usually less popular for your average investor, but can be an important lever when diversifying investments and hedging against the risk of unfavorable rate markets in the long term.
The best 5-year CDs will offer lower rates than the other terms on our list, but are still popular options for investors. These CDs are best for those looking to lock in high rates for the long term. CDs are generally viewed as safe investment vehicles, and securing a favorable rate can yield considerable earnings in year three and beyond β even if rates fall elsewhere.
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All eyes are watching to see whether the Federal Reserve will cut interest rates for the third time in a row this week, meaning the clock is ticking on the high interest rates for deposits that we've come to expect. With rates rapidly changing, how can you be sure that you're getting the best interest rate?
We monitor rates from banks and credit unions daily to help you feel confident before you open a new account β and now could be a great time to lock in a high rate before APYs go off a cliff. Here are the top rates for popular banks on Tuesday, December 17.
High-yield savings accounts aren't the only accounts paying favorable rates right now. You'll typically see the highest rates at online or lower-profile institutions rather than national brands with a significant brick-and-mortar presence. This is normal; online banks have lower overhead costs and are willing to pay high rates to attract new customers.
The best high-yield savings accounts provide the security of a savings account with the added bonus of a high APY. Savings accounts are held at a bank or credit union β not invested through a brokerage account β and are best for saving cash in pursuit of shorter-term goals, like a vacation or big purchase.Β
The best high-yield checking accounts tend to pay slightly lower rates than high-yield savings, but even they are strong in today's rate environment. A checking account is like a hub for your money: If your paycheck is direct deposited, it's typically to a checking account. If you transfer money to pay a bill, you typically do it from a checking account. Checking accounts are used for everyday spending and usually come with checks and/or debit cards to make that easy.
The best money market accounts could be considered a middle ground between checking and savings: They are used for saving money but typically provide easy access to your account through checks or a debit card. They usually offer a tiered interest rate depending on your balance.
A cash management account is also like a savings/checking hybrid. You'll generally see them offered by online banks, and, unlike a checking account, they usually offer unlimited transfers. A savings account often limits the number of monthly transfers, while a checking account doesn't. Cash management accounts typically come with a debit card for easy access, but you may have to pay a fee if you want to deposit cash.
The best CD rates may outpace any of the other accounts we've described above. That's because a certificate of deposit requires you to "lock in" your money for a predetermined amount of time ranging from three months to five years. To retrieve it before then, you'll pay a penalty (unless you opt for one of the best no-penalty CDs). The longer you'll let the bank hold your money, the higher rate you'll get. CD rates aren't variable; the rate you get upon depositing your money is the rate you'll get for the length of your term.
Locking your money into an account in exchange for a higher interest rate can be a big decision. Here's what you need to know about common CD terms.
Most CDs charge you a fee if you need to withdraw money from your account before the term ends. But with a no-penalty CD, you won't have to pay an early withdrawal penalty. The best no-penalty CDs will offer rates slightly higher than the best high-yield savings accounts, and can offer a substantially improved interest rate over traditional brick-and-mortar savings accounts.
The best 6-month CDs are offering interest rates in the mid-5% range. Six-month CDs are best for those who are looking for elevated rates on their savings for short-term gains, but are uncomfortable having limited access to their cash in the long term. These can be a good option for those who may just be getting started with saving, or who don't have a large emergency fund for unexpected expenses.
The best 1-year CDs tend to offer some of the top CD rates, and are a popular option for many investors. A 1-year term can be an attractive option for someone building a CD ladder, or for someone who has a reasonable cash safety net but is still concerned about long-term expenses.Β
The best 2-year CD rates will be slightly lower than 1-year and no-penalty CD rates. In exchange for a longer lock-in period, investors receive a long-term commitment for a specific rate. These are best used as part of a CD ladder strategy, or for those worried about a declining rate market in the foreseeable future.
The best 3-year CDs tend to have rates that are comparable to 2-year CDs. These are usually less popular for your average investor, but can be an important lever when diversifying investments and hedging against the risk of unfavorable rate markets in the long term.
The best 5-year CDs will offer lower rates than the other terms on our list, but are still popular options for investors. These CDs are best for those looking to lock in high rates for the long term. CDs are generally viewed as safe investment vehicles, and securing a favorable rate can yield considerable earnings in year three and beyond β even if rates fall elsewhere.
Saul Martinez/BI
Karen Lauer's husband died without a will. On top of the grief of losing the person she loved, Lauer's finances were thrown into chaos.
She's one of many older widows and widowers who have shared their stories with Business Insider in recent months. They're among the more than 2,000 Americans who've responded to a reader survey about their life regrets. This story is part of an ongoing series.
Some widows told BI they lost substantial amounts of their household income or were thrust into complex legal battles for their spouse's assets.
Others regret not outlining a will, skipping a life-insurance policy, or not building savings before their spouse's death: "Having been widowed twice and left with three girls to raise alone, I wish I would've saved money for my retirement years," one survey respondent wrote.
"I hate living without my husband β I needed to prepare for widowhood while making the most of our last years together," another said.
For Lauer, sorting through the pieces of her husband's estate has been painful.
"Because we didn't have a will, I feel like I'm going through a divorce between my dead husband and myself," Lauer said.
We want to hear from you. Are you an older American with any life regrets you'd be comfortable sharing with a reporter? Please fill out this quick form.
Saul Martinez/BI
Lauer, 64, smiles thinking about the man nicknamed "Cowboy Steve." She pictures him cantering on his horse at their ranch in western Nebraska, gathering a thin layer of dust on his leather boots.
Her husband died following an accident last year. Without a will, she said the local court told her that all of her husband's money and assets would go into probate, a legal process used to divide a deceased person's estate, typically among their blood relatives. Lauer said because the ranch was in Steve's name, not hers, she was required to move off the ranch during the process so the house could be sold. She said she's now experiencing homelessness.
She's house-sitting for a friend in Lincoln, Nebraska, but doesn't know where she'll live next. With limited savings of her own, Lauer said she's surviving on less than $2,000 in monthly Social Security payments. She said it's not enough to cover essentials or rent her own apartment.
Lauer's financial experience mirrors that of others. In fact, on average, widows have lower 401(k) balances, less savings, and a more limited monthly retirement income than married retirees, BI found in an analysis of individual-level data from the Census Bureau's 2023 Survey of Income and Program Participation.
The average monthly income of widowed retirees is higher than that of divorced retirees and retirees who never married. But at an average of $2,381 monthly, their income is still several hundred dollars lower than that of married retirees with a surviving spouse. The analysis looked at retirees' income from pensions, Social Security, retirement accounts, or insurance benefits.
Doug Ornstein, the director of wealth management at TIAA, told BI that losing a spouse could have "devastating" financial impacts.
"If the person who handled most of the money passes away unexpectedly or early, the surviving spouse might not have financial literacy," he said. "Or maybe the couple undersaved for retirement β that person has to figure it out themselves."
AΒ reportΒ published in June by the financial firm Thrivent found that less than half of widowed women feel prepared to manage their finances after a spouse's death. Twenty-nine percent of women surveyed said they created a will with their spouse, while 41% said they had no financial plan before their spouse's death. The firm surveyed a national sample of 422 female widows in May 2024.
Lauer wishes her "marriage license came with instructions," she said. Steve died unexpectedly, and Lauer said she didn't have enough knowledge about the probate and asset-division process, or how it would affect her livelihood as the surviving spouse. She advises other married people to write a will and make a financial plan as soon as possible.
Saul Martinez/BI
Ornstein said there are a few key ways that Americans can financially protect themselves if their spouse dies.
The first step is creating a will and having regular conversations about finances as a couple. A life-insurance policy β which people can buy or opt in to through their employer β can provide further financial security to a deceased person's family after their death. Typically, people pay a regular premium for the insurance throughout their career and can name a spouse or children as their beneficiaries.
Ornstein told BI that widows and widowers should work with an estate-planning attorney, financial advisor, and tax professional directly after their spouse dies. He added that, when preparing for those meetings, it's best to collect as many legal and financial documents as possible: a death certificate, a marriage license, bank statements, tax returns, benefits paperwork, insurance policies, and a will.
With an attorney and financial advisor, widows and widowers should apply β or reapply β for benefits such as Social Security and pensions, Ornstein said. They may be entitled to spousal benefits or higher monthly government aid. He added that a surviving spouse would likely have to transfer ownership of assets like a house, credit card, retirement account, or loan to themself or another family member.
"Take things one step at a time," he said in a follow-up email. "It's normal to feel stressed, overwhelmed, and anxious in this situation."
Still, not all widows or widowers have regrets about their money habits, even if they're in a precarious financial position.
Looking back on his 48 years of marriage, Robert Berkeley feels good about how he spent his money. He and his wife, Lourdes, spent decades traveling, dining at their favorite restaurants, and hosting big family holiday gatherings in their eastern North Carolina home. After their respective careers as an intelligence analyst and a dental hygienist, the couple decided to retire in their 60s β living largely on their monthly Social Security checks and the few thousand dollars they had saved.
Twelve years later, in 2022, Lourdes was diagnosed with cancer. The disease was aggressive, and she died within a couple of months.
Now 78, Berkeley is struggling to make ends meet. He and his wife didn't have a life-insurance policy or robust savings. He said it's been difficult to afford housing, utilities, groceries, and transportation without two Social Security incomes. Berkeley receives a $1,650 monthly payment, but he's in debt and behind on bills. He's hoping the part-time security guard job he landed recently will help fill the gaps.
Saul Martinez/BI
Despite his limited budget, Berkeley feels at peace with past spending habits: "We decided to live our life in our 30s, 40s, 50s, 60s, right up to hitting our early 70s," he said. "We weren't the kind to squirrel money away for something that might happen in the future."
The couple lived β and spent β in the moment, he said. He may not have much wealth left as he ages, but Berkeley said it's worth it for the years he had and the memories he made with his "darling wife."
Are you struggling with finances after losing a spouse? Are you open to sharing your experience with a reporter? If so, reach out to [email protected].
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