Retirees should not be frivolous in retirement spending.

People like to reward themselves.

On a small scale, this may involve a small sugary treat at the end of a long work week.

On a larger scale, it may involve big-ticket items like a brand-new sports car or a luxury vacation.

According to a recent msn.com article titled “8 Things Boomers Should Never Buy in Retirement,” retirees often feel justified in spending sprees early in their golden years.

Spending tens of thousands of dollars on cruises and travel annually early in retirement can quickly break the budget.

Although a little splurge here or there may be appropriate, consistently choosing to make purchases above your budget can quickly deplete savings.

What spending is tempting but should be avoided?

Overpriced vacations.

Does this mean you should not travel?

Not at all.

Many people desire to travel after they are no longer tied to a job.

The issue is when travel is not accounted for in the retirement budget.

Even with a retirement account in the millions, spending $50,000 annually on cruises and world travel will drain these quickly.

Few people really spend this much on travel each year, but even smaller sums can outpace retirement funds depending on how long a person lives and how much is in the accounts.

Extravagant gifts. 

Doting on grandchildren or supporting children can be enjoyable and meaningful.

While your heart may be full, your wallet may be low and no longer able to support your own needs in a long retirement.

Unnecessary or Overly Expensive Home Renovations.

Certain home improvements can benefit the cost of the house and your ability to age in place.

Getting all new appliances in your kitchen or installing solar panels is not likely to be worth the cost.

Necessary maintenance and improvements like adding lighting or placing bars in the shower during retirement will benefit both you and future owners.

Buying Discretionary Items on Credit.

Many retirees have a fixed income provided through pension and Social Security.

Spending in excess of these amounts means tapping into credit.

Consistently spending beyond your means, you will accumulate credit card debt and will undermine your budget.

Timeshare Vacation Homes.

Traveling to different locations through timeshares can sound fun.

Unfortunately, these are both restrictive and expensive.

Resale value is low, and the costs of maintaining the timeshare are expensive.

Traditional vacations will be a better return on your investment.

Excessive Life Insurance.

Waiting to purchase life insurance in retirement could be an unnecessary and expensive choice.

You may not need life insurance if your mortgage has been paid and if your kids are grown and living independently.

Out-of-Network Medical Services.

As the body ages, healthcare costs tend to increase.

Although some costs are inevitable, you can ensure you do not pay more than you need by choosing providers who are in-network for your procedures.

Let Your Children Pay for Some Things.

You may want to provide some support to your adult children.

Even so, they are likely capable of paying for their own rent, credit card debt, or cell phone bills.

By refraining from paying for these expenses, you can foster financial responsibility and keep more money for your own needs in retirement.

Although avoiding these common mistakes can help you preserve your funds for a long life, the best way to ensure your income meets your needs is to create and stick to a budget.

Reference: msn.com (Aug. 18, 2023) “8 Things Boomers Should Never Buy in Retirement”