My Biggest Retirement Mistake: ‘I Wish I Had Started Saving Earlier’

That opened Talisman up to the world of saving and investing, and she didn’t look back. When she returned to the U.S. three years later, she was able to bring her accumulated super with her, giving her the makings of a nest egg.

Catching the savings bug

Now, she had the bug. At her new job, with the Nevada System of Higher Education (the agency that oversees the state’s public colleges and universities), she took full advantage of a retirement plan with a 17.5 percent contribution rate and a full employer match. She topped it up with catch-up contributions — additional money the IRS allows people age 50 and up to put into tax-deferred retirement accounts — and paid attention to her fund’s investment opportunities.

With her earnings at their peak in this period, Talisman was able to put away more than $100,000, which investment returns increased to more than $150,000 by the time her next job in San Diego went south. At that point, she was 61. “I realized I was eligible for Social Security in nine months, and I had investments and a retirement account, so let’s see if I can make it work,” she recalls. Claiming retirement benefits at the minimum age of 62 meant taking a 30 percent cut compared to what she’d receive if she waited until her full retirement age, but she did the math and decided it wasn’t worth waiting it out in her current job or trying to find another one. 

“I knew I had enough to step away for six months and travel. That’s where I started and just kept going,” she says.

Talisman has been traveling nonstop since retiring in August 2021. She recounts her trips and offers advice for fellow nomads in videos she posts on her website and YouTube channel, both titled Where's BabZ?

Jessica Pons

That “six months” is now nearly three years. She’s had to plot her course as a solo traveler on a budget, and that means getting creative. She uses cruises to crisscross the globe, saving money compared to flying across oceans and staying in hotels or rentals. (She launched her nomad lifestyle by booking four consecutive cruises at a cost of $500 a week, meals included.) When not at sea, she explores new destinations on the cheap by offering house-sitting and pet-sitting services through an online marketplace.

“I wish I had started retirement savings earlier,” she says, “but I can’t live with regrets.”

What the expert says

Talisman’s story of delayed savings is a common one, and a reminder that while you can’t turn back time, you can find ways to shore up your savings after a long drought, says Pam Krueger, founder and CEO of Wealthramp, a company that connects consumers with independent, fee-only financial advisers.

Pam Krueger, founder and CEO of Wealthramp

Courtesy Krueger

“First things first: Don’t bother with regret or any anxiety. Those feelings can paralyze you,” Krueger says. “Do take action right now.”  

If you have access to an employer-sponsored retirement plan like a 401(k), start using it. Try to contribute at least up to the maximum employer match. For example, if the company will match your contributions up to 3 percent of pay, contribute at that rate or higher — otherwise you’re leaving free money on the table. If you are age 50-plus and can afford it, catch-up contributions can be a quick way to amass more savings and take advantage of compounding returns, as Talisman did.

If you are already retired and things are tight, Krueger suggests downsizing your home and looking for additional ways to cut costs and boost income, such as getting a part-time job, taking on a roommate or selling unwanted stuff.

“Remember, this is a no-judgment zone,” she says. “Self-deprecation will only hold you back.”