Five retirement purchases that may lead to regret, according to Moneywise
A Moneywise article citing an AARP study highlights luxury cars, major renovations, timeshares, impulse purchases and large family gifts as potential trouble spots.
Retirees may be more vulnerable to costly spending decisions during the early years of retirement, when the so-called “Go-Go” phase can bring higher spending, according to a Moneywise article published by Yahoo Finance.
The article, citing an AARP study, identifies five categories that some retirees may later regret: luxury cars, extensive home renovations, timeshares, impulse purchases and substantial financial gifts to children. The supplied material does not include the study’s title, methodology or direct findings.
Luxury vehicles can bring higher finance, fuel, maintenance and insurance costs at a time when income may be lower. The article cites US data showing average annual car insurance of US$2,290, while noting that luxury and antique vehicles can attract higher premiums.
Large renovations can also strain a fixed income, particularly when projects expand beyond their original budget. The article cites an average annual US homeowners insurance cost of US$2,370 and recommends reviewing cover and comparing rates, although those figures may not apply to Australian retirees.
The article suggests using hotels rather than buying a timeshare, tracking discretionary spending to limit impulse purchases, and carefully reviewing large gifts or loans to children. It also recommends preparing a budget and considering professional financial advice before making significant decisions.
The article contains affiliate and sponsored commercial material, and its recommendations are general information rather than personalised financial advice. Its claims indicate categories that some retirees may regret, not that regret is common or inevitable.
