Retirement is all about enjoying the fruits of your labor, but spending wisely is key to making your savings last. Some expenses just aren’t worth it, so keep your wallet happy and your retirement stress-free by steering clear of these unnecessary costs. Here are 13 things you should avoid wasting your money on when you retire.
The Latest Phones
Statistics from the Washington Post show that “two-thirds of boomers own a smartphone, and about 6 in 10 are on social media.” Because of the boomer generation’s addiction to smartphones, they might feel compelled to spend money on the latest models. But keeping up with the latest smartphones as they are released is an expensive challenge.
A New Car
Another common purchase by boomers is a brand-new car. Although getting a new car is a nice luxury, it will soon lose its value. According to MoneyHelper, the “drop in value varies between makes and models but typically is between 15–35% in the first year and up to 50% or more over three years.”
New Desktop Computers
Boomers like desktop computers. The Pew Research Center says that 65% of younger boomers and 64% of older boomers own desktop computers. Boomers might feel like retirement is a good time to purchase a new desktop computer, although these can set you back hundreds or even thousands of dollars.
A Bigger House
Retirement might not be the best time to buy a bigger house. Many older people quickly find themselves needing help to look after their homes because they do not have the energy to keep on top of the maintenance. A bigger house might put an unnecessary burden on a boomer.
Home Décor
Many boomers like to spend their retirement browsing home stores. These stores are tempting for many, and they like to purchase things for their homes. But filling up the home with things is not a good idea at this stage of life. Lots of home décor items can easily become trip hazards for older people.
Package Vacations
Package vacations from a travel agent usually work out to be a lot more expensive than if you were to organize your own trip. Boomers should avoid wasting money on package deals if they can find a better deal by shopping around or organizing their trip through an app.
Expensive Travel Deals
Some travel companies take advantage of boomers and try to get them to travel at expensive times of the year. But boomers who have retired should take advantage of their free time and travel at inexpensive times of the year that are off-peak when most families are working and children are at school.
Jewelry
Retirement can be an expensive period of life. Health care is pricey, and there can be a lot of unexpected expenses. The freedom of retirement might, however, spur boomers into purchasing expensive jewelry. But discretionary spending on fine jewelry at this time is not wise.
Full-Price Leisure Memberships
Most senior citizens will be able to benefit from a senior discount at leisure facilities in their area. Instead of paying full price for a gym or swimming club membership, they should see what deals are available for over 60s. Finding the best deals will help them get the most out of their retirement fund.
Theater Tickets
Every boomer wants to spend their retirement money on things they enjoy doing. But some pastimes are very expensive and should be considered treats rather than regular ways to entertain yourself. These include live theater performances. These are very luxurious, and a boomer does well to limit how many showings they go to.
Expensive Cinema Tickets
Some cinemas have senior citizen days where they provide discounts for seniors over a certain age who want to visit the cinema. Boomers should avoid visiting the cinema on days when they would have to pay for full-price tickets. Why pay more when you don’t have to?
Expensive Items From Pharmaceuticals
Many pharmaceutical businesses provide discounts on medicines for senior citizens. To benefit, you often have to be a member of a certain club or visit the pharmacy on a specific day, but this makes for great savings. Boomers should take advantage of these discounts so they can save money on healthcare.
Phone Lines With High Tariffs
It takes a little shopping around to find the best deals, but many senior citizens can save money on their phone lines because they are over 60. Instead of wasting retirement money on expensive deals, boomers should look for phone lines with low tariffs and good discounts.
