When people retire, they want to relax, move to a quiet neighborhood, and spend the money they’ve worked hard to save their entire lives. However, in this day and age, it isn’t quite that simple. With high inflation and an increasingly competitive real estate market, seniors need to be more careful with how they’re spending their hard-earned cash.
1. Not Taking Advantage of Senior Discounts
One area that seniors might be missing out on saving money is senior discounts.
Check Out Some Public Attractions
Most museums and other public attractions offer a senior discount for people ages 65+.
2. Making Expensive, Unnecessary Home Upgrades
Home renovations, especially unnecessary ones, can really eat into one’s retirement budget, especially with the cost of materials these days.
Don’t Get Scammed Into Paying More
Make sure if you’re looking into making any changes, make sure you have enough money, and you’re getting the best deal.
3. Spending Too Much on Adult Children
Most people love their children, but one shouldn’t have to bear the burden of supporting their adult children using their retirement money. In fact, it should be the other way around.
Retirees Need the Support
Adult children should do their best to support their elderly parents, especially when they go into retirement.
4. Buying a Brand New Car
Buying a brand new luxury car isn’t a smart investment for anyone, but especially for someone who isn’t in the workforce anymore and likely never will be again.
Not Worth the Costs
Cars depreciate in value as soon as you drive them off the lot. A luxury car isn’t worth the high monthly payments, sky-high insurance rates, exorbitant maintenance fees, or the premium gas you’ll need to put in it.
5. Having Credit Card Debt
Nothing sucks your money-and soul-like credit card debt. With the soaring interest rates, credit cards are becoming more expensive than ever, especially if you accidentally miss a payment.
One Is Probably Enough
If you don’t need more than one credit card, there is no reason to keep racking up and paying off debt.
You Might Also Like: 50 Stupid Simple Side Hustle Ideas (& How to Make Them Work
6. Investing Long-Term
This one is pretty self-explanatory. Seniors don’t have the decades of life ahead of them that younger investors do, so making long-term investments isn’t as wise of a financial choice as it might have once been.
Consult and Advisor
If you’re wanting to invest some money somewhere, consult with a financial advisor and see if there are any shorter-term investments you could look into.
7. Owning Multiple Vehicles
If it’s just you and your wife, or even just you, there isn’t really a need to have multiple cars.
Not Worth It
Cars are expensive, their maintenance is expensive, and if you don’t absolutely need more than one, you should seriously consider downsizing.
8. Living in a Home That Is Unnecessarily Large
If there are only two of you, there really isn’t a need to retire in a mansion. The mortgage, property taxes, and upkeep aren’t really worth it when you don’t actually need that much space.
Stick With the One Story
Especially for seniors, who would likely do better in a one-story house where there isn’t a risk of falling down stairs.
9. Entertaining Costly Hobbies
There are plenty of hobbies retirees pick up that can drain one’s bank account at alarming rates. Cars, boats, and rare collectibles, to name a few.
Keep an Eye on Your Coffers
Make sure you’ll have enough money over the long term to be able to afford a hobby before you pick it up.
10. Overspending on Insurance
Oftentimes, insurance employees will try to sell you unnecessary packages so they can collect the highest commission.
Don’t Get Oversold
Make sure you actually need all of the insurance that comes in the package before making the purchase.
You Might Also Like: 20 Valuable Collectibles Laying Around Your House
11. Being Too Generous
We all want to be able to tip waitresses $50 and not have it hurt our wallets or donate as much as we can at church.
Can You Afford to be Nice?
However, you need to be mindful of how much you can afford to give away, lest you accidentally give away everything.
12. Owning Multiple Homes
When you’re a retiree, especially one who doesn’t move around a lot, it might not make financial sense to own more than one home, especially if the other home is in a different state.
At Risk Flyers
Seniors are at a much higher risk of catching sicknesses during travel, and it will not be as safe to go to the other home as it might have once been.
13. Spending too Much on Healthcare
Some seniors will continue to pay for private health insurance, even though they could save a lot more money through the state program or Medicare.
Look carefully at all available plans before making your decision. There could be a better deal out there.
14. Eating Out Too Often
Eating out is one of the best ways you can waste money. Making it a habit to go out to eat can be a whirlpool to your bank account.
Learn to Cook
Even if you’ve spent your entire life saving for retirement, is it really worth it to blow all the money in two years on fancy dinners that only last as long as they’re in your digestive system?
You Might Also Like: 40 Best Jobs for Retirees To Make Extra Money
15. Cashing Out Pensions
It might sound nice to have an extra pile of cash laying around, but if you decide to cash out your pension now, you might have to end up paying thousands of dollars in commission to your financial advisor.
Sleep on It
Make sure to think long and hard before making the decision to withdraw your pension.