9 Things Retirees Should Stop Buying, According to Financial Experts

When you retire, many things will change. You may say goodbye to the daily commute and hello to a Social Security check. And unless you have built a large nest egg, you will likely face the challenge of living on less income than you received during your working days.

Recently, we asked financial advisors across the country to chime in about the types of spending that people should leave behind once their golden years begin. Here are their answers.

New items you don’t need

Catherine Valega, a certified financial planner and director of financial and tax planning at SMB Financial Strategies in Burlington, Massachusetts, has two words of advice for new retirees: “Lighten up.”

Retirement is a time to start getting rid of stuff, not accumulate new items. This is especially true of things you are sure your kids will not want, she says.

So, get rid of items on sites such as Facebook Marketplace or Freecycle. If you have expensive items, try to sell them during an estate sale or at an auction.

“This allows you to downsize if necessary or wanted and also sets your kids up for easier days if you eventually need to move to a long-term care facility, or upon your passing,” Valega says.

Country club memberships

Wealthier retirees might be tempted to join a country club — or continue their membership if they already have one. But such folks often spend their golden years traveling or visiting family and friends, says Thomas Balcom, a certified financial planner and founder of 1650 Wealth Management in Lighthouse Point, Florida.

Balcom says he has a number of such clients, and that he often ends up asking them how often they are using their country club membership and whether or not it makes financial sense to continue.

“If an individual is paying $25,000 a year to be a member of a club, and they are only golfing two or three times per month, those are some hefty greens fees that they are paying,” he says.

Balcom says it might make better financial sense to play the guest rate when they are in town and use the savings for other expenses.

Mortgages

It might be best to avoid new mortgages — and to pay off existing home loans — as you begin retirement.

Crystal McKeon, a certified financial planner and chief compliance officer at TSA Wealth Management in Houston, says it is best to enter retirement without having a mortgage or other debt payments.

“Paying off all your debts before retirement gives you the freedom to spend how you want and live the life you want in a sustainable fashion,” she says.

Accessories you used to buy for work

When you were a worker, you probably made many purchases that were necessary to build a thriving career. But now, you can put those purchases to the side, says Marc Shaffer, a certified financial planner and CFO at Searcy Financial Services in Overland Park, Kansas.

Shaffer says many of his clients continue to buy items for their wardrobe or pay for high-data plans when they no longer need them.

“Eliminating those unnecessary expenses frees up cash flow that can be redirected toward experiences that bring fulfillment, like visiting family, volunteering, or traveling during off-peak seasons to save money,” Shaffer says.

He advocates using a living expense worksheet that helps retirees to see exactly where their money goes.

“Retirement should not mean cutting joy — it should mean spending intentionally,” Shaffer says. “When every dollar has a purpose, you can design a retirement filled with meaning, generosity and balance rather than clutter or waste.”

Life insurance and disability insurance

There is a time and season when some types of insurance make sense. But as your life changes, your coverage needs also might shift.

“Once someone retires, the need for life insurance and disability insurance largely goes away,” says Jacob Martin, a certified financial planner and financial advisor at Keeler & Nadler Family Wealth in Dublin, Ohio.

He suggests taking the money you save and shifting it into premiums for long-term care insurance that can help mitigate end-of-life health care expenses. “Or, just save the money for other things,” he says.

Clark Randall — a Dallas-based certified financial planner and director of financial planning for Creekmur Wealth Advisors — says dropping disability insurance is particularly important once you retire.

He says many people mistakenly believe such a policy will pay out automatically if you are disabled.

“That’s not the case — they must be losing an earned income in order for the policy to pay,” Randall says. “So, they should definitely stop paying all their disability insurance.”

Yard work tools and services

A house with a big yard can be surprisingly expensive, says Patrick Huey, a certified financial planner and owner and principal advisor at Victory Independent Planning in Naples, Florida.

Lawn care, landscaping, snow removal and pool upkeep can regularly take a chunk out of your wallet and your free time.

“These hidden home expenses eat into the budget and the calendar,” Huey says. “Downsizing — or choosing ‘maintenance included’ living — can free up both time and cash.”

Expensive vacation packages

Retirement can be a great time to travel, but that doesn’t mean you need to bust your budget when doing so.

Once you are retired, you no longer need to limit yourself to one-week or two-week vacations, says Todd Calamita, a certified financial planner and founder and president of Calamita Wealth Management in Charlotte, North Carolina.

“This opens up many possibilities for finding better value in your accommodations,” he says.

For example, you can save by traveling at off-peak times. Or, use extended-stay sites for booking month-long trips at a comparable cost to week-long vacations you might book through sites such as AirBnb and VRBO.

“Over the summer, my family and I took a month-long trip to Spain and used an expat housing service — Dasha Living — and paid $4,200 for the entire month, which is often the cost of a week-long family trip to the beach,” Calamita says.

He added that this was during high season. “So, if you went off-season it would be 50% less,” he says.

Those who are “a little more adventurous” can use a site like Homestay.com to book a stay with a local family, Calamita says.

“My son and I stayed with a family for $35 a night in Spain and very much enjoyed the cultural exchange part of it,” he says.

Cellphone plans, tuition and other things that ‘help’ family

It can be difficult to refrain from showering your kids and grandchildren with cellphone plans, tuition, rent assistance and other forms of financial help.

But doing so can “quietly derail your retirement plan,” says W. Michael Lofley, a certified financial planner and financial advisor with HBKS Wealth Advisors in Stuart, Florida.

“Retirees should set clear boundaries and consider gifting only what fits within their annual plan,” he says.

Mutual funds, ETFs and other investments for retirement

The best way to prepare for retirement is to accumulate decades of diligently saving money and building a nest egg.

But once you finally retire, you can put your savings efforts into a lower gear, says Jeremy Keil, a certified financial planner at Keil Financial Partners in New Berlin, Wisconsin.

“A lot of people think they need to replace their current income in retirement, but two huge working expenses go away,” Keil says.

The first expense is contributions to a 401(k) plan, IRA or other retirement vehicle. “You don’t need to save for retirement in retirement,” Keil says.

In addition, you no longer pay FICA Social Security and Medicare taxes in retirement.

“Just between those two expenses that go away, you might only need to replace 70% to 80% of your current income in retirement,” Keil says.