Top 12 Retirement Regrets Every M&T Bank Employee Should Know Before It's Too Late

Healthcare Provider Update: Healthcare Provider for M&T Bank M&T Bank collaborates with various healthcare providers as part of its employee benefits package. Notably, they offer plans that include coverage through the Health Plan Services, which encompasses options under the Affordable Care Act (ACA). Potential Healthcare Cost Increases in 2026 As M&T Bank employees prepare for 2026, they should be aware of significant healthcare cost increases looming on the horizon. The projected rise in premiums for ACA marketplace plans, particularly in states like New York, could exceed 60%. Additionally, the potential expiration of enhanced federal subsidies may leave approximately 22 million enrollees facing a staggering 75% increase in out-of-pocket costs. With employers like M&T Bank possibly shifting a greater share of healthcare expenses onto employees, it is crucial for individuals to review their benefit options and strategize their healthcare spending as they approach a year of unprecedented financial strain. Click here to learn more

The intricacy of financial preparation becomes more evident as baby boomers approach retirement. Here, we explore the complexities of saving money for retirement, providing in-depth analyses of typical traps and calculated methods that guarantee a secure financial future throughout one's golden years.

1. Impulsive Relocation's Pitfall

Retirement is often seen as a chance to move to a more temperate or tranquil area. A decision made purely on impulse, though, could not satisfy you. The slow pace of living and absence of a known community can make life in a new area very different from holiday experiences. Before relocating permanently, it is essential to make lengthy visits or short stays. Additionally, renting first can offer a safety net in case the new surroundings fall short of expectations and flexibility that purchasing does not. M&T Bank employees should carefully consider the implications of relocation and take these steps to feel confident they are making the right decision.

2. The Risk of Fraudulent Plans and Scams

There are several financial scams that prey on retirees, and the losses can reach hundreds of millions of dollars every year.  According to the FTC , 2.4 million customers reported fraud in 2022 alone, resulting in $8.8 billion in losses. Before making any financial commitments, it is important to identify warning indications of fraud, such as claims of large returns with little risk, and to get guidance from reputable sources or legal counsel. By being aware of these risks and exercising caution, one can avoid suffering large financial losses. M&T Bank employees should remain vigilant and consult trusted advisors to shield their finances.

3. Overestimating One's Capacity to Work Without End

Many intend to work past the conventional retirement age in order to increase their funds, but this is frequently not possible because of health problems or changes in the workplace, including downsizing.  According to data from the Transamerica Center for Retirement Studies, only 19% of people over 65 are genuinely employed, despite the fact that more than half of workers plan to work after retirement.  It is wise to have substantial assets and diversify your income streams in order to prepare for an unplanned early retirement. M&T Bank employees should plan for unexpected changes and build a robust financial cushion.

4. Postponing Accumulating Retirement Funds

Delaying starting retirement savings is the largest financial regret among Americans. Saving money early and consistently is essential. Compared to starting later in life, Morningstar states that starting to save in one's 20s drastically lowers the monthly amount required to amass sizeable retirement funds. Retirement savings can be increased through additional chances provided by incentives such as catch-up contributions post-50.

5. Making Early Social Security Claims

Benefits can be started at age 62, however waiting until at least the age of full retirement (67 for those born after 1959) can result in a significant monthly benefit increase.  By using delayed retirement credits, waiting until age 70 maximizes the advantage. To maximize long-term financial security, financial planners frequently advise delaying Social Security claims by utilizing alternative sources of income. M&T Bank employees should consider the long-term benefits of delaying Social Security to maximize their retirement income.

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6. Taking Out a Loan Against Retirement Funds

401(k) plan loans may put future financial security at risk.  According to Fidelity Investments,  borrowing may result in lower contributions and a loss of employer-matched funds, both of which have a significant negative effect on retirement savings. Preserving retirement funds and ensuring their growth can be achieved by taking into account alternate financing sources for big expenses or crises. M&T Bank employees should explore other funding options to avoid jeopardizing their retirement savings.

7. Overindulgent Organizing

While living a simpler lifestyle might be freeing, it's important to weigh the value of certain things, such as tax or company records. Legal requirements dictate the retention of certain records, and getting rid of them too soon can cause issues or liabilities. M&T Bank employees should be sure they keep necessary documents to avoid potential problems.

8. Giving Children's Needs More Importance Than Retirement Savings

Financial freedom may be compromised by using retirement funds to pay for weddings or education. Examining federal student loans, grants, and scholarships can reduce expenses without compromising retirement savings. M&T Bank employees should prioritize their own financial security while exploring alternative funding options for their children’s needs.

9. Time-Shares' Dangers

Retirees may find time-shares appealing as a way to take frequent holidays, but they have substantial financial commitments and possible resale issues. Unfortunate financial obligations can be avoided by fully comprehending the financial ramifications and looking into alternate vacation possibilities. M&T Bank employees should carefully evaluate the long-term costs and commitments associated with time-shares.

10. Steer Clear of Stock Investments

Refusing to invest in the stock market because of perceived risks may result in insufficient retirement fund development. Equities have produced higher average yearly returns since 1926 than safer investments such as bonds or certificates of deposit (CDs). Safer exposure to stock market growth can be obtained through diversified investments in inexpensive mutual funds or exchange-traded funds (ETFs). M&T Bank employees should consider balanced and diversified investment strategies to optimize their retirement portfolio.

11. Neglecting the Requirement for Long-Term Care

Long-term care can be quite expensive; the national median cost is hundreds of dollars a month. In order to address future demands without depleting retirement resources, it is crucial to think about long-term care insurance or other financing sources as Medicare typically does not cover these expenditures. M&T Bank employees should include long-term care planning in their retirement strategy to shield their savings.

12. Ignoring the Need for Estate Planning

By preparing an estate plan, you may make sure that your final intentions are honored and that your assets are allocated as you planned. If there isn't a legitimate will, assets might be divided in accordance with state regulations, which might not reflect the deceased's preferences. It is possible to avoid unintended issues for heirs by routinely revising estate planning contracts to reflect changes in life. M&T Bank employees should prioritize estate planning to feel confident their wishes are carried out and their assets are shielded.

Underestimating healthcare expenditures is one of the biggest concerns for retirees. A 2022 analysis by Fidelity Investments estimates that the average couple planning to retire at age 65 will require almost $300,000 in savings after taxes just to pay for their medical costs. This highlights how crucial it is to include healthcare planning in retirement plans, particularly given that healthcare expenses are still rising faster than the rate of inflation. It is essential to budget for these costs in order to shield other retirement assets and guarantee complete coverage in later years of life.

Managing retirement planning is akin to getting ready for a significant ocean cruise. People who are getting close to retirement should carefully plan their financial journey, much as a seasoned captain must carefully prepare by plotting the path, inspecting the ship, and stocking required supplies to avoid the hazards of unpredictable seas and weather. Insufficient preparation might leave one adrift at sea, vulnerable to unforeseen financial storms such as medical expenses, fraudulent investments, or insufficient savings that can swiftly exhaust one's resources and transform what should be a peaceful journey into a struggle for survival. A retirement that glides easily toward a horizon of stability and comfort is the result of careful planning, which also helps you avoid the regrets that come with untested financial waters. M&T Bank employees should take these lessons to heart to feel confident during their smooth and safe retirement journey.