4 Purchases You Should Avoid If You’re Planning on Retiring in 2026

Syda Productions / Shutterstock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Large pre-retirement purchases often fall into one of two categories: things you want to buy before losing your salary and things that will support your retirement lifestyle. Both can result in buyer’s remorse if you don’t think them through before pulling the trigger.

Here are four purchases to avoid if you’re planning to retire in 2026.

Recreational Vehicle

A desire for comfort and simplicity drives near-retirees’ recreational vehicle (RV) purchases, according to a recent report from the RV Industry Association. However, owning and traveling with one can be anything but comfortable and simple. 

In addition to the purchase price, which can range from under $15,000 for a small travel trailer (tow vehicle not included) to over $250,000 for a higher-end motor home, you’ll have to insure your RV and perhaps rent storage space. Maintenance and repairs add to the costs. 

Before you buy, consider renting an RV for a few short trips during your first year in retirement. Experience with loading and unloading, setting up/breaking down camp, and living in tight quarters will give you a sense of whether you’ll get your money’s worth from a purchase. 

New Luxury Car

With your carpooling days behind you and your commute coming to an end, this might seem like the perfect time to buy that brand-new luxury car you’ve dreamt of owning. Although the appeal of owning a luxury vehicle is undeniable, so is the high cost. 

Your luxe ride could lose 20% of its value in its first year and 60% within five years, according to Car and Driver. During that time, you could spend several thousand dollars on maintenance, thanks to high repair costs for many luxury models, and pay high insurance rates compared with non-luxury makes.

Hold off until you’ve lived with your post-retirement budget for a while and have a better grasp on what financial trade-offs you’ll have to make to buy the car. If you still want it, consider buying used. That way, depreciation works for you, not against you.

Second Home

If you’ve ever booked a vacation rental, chances are good that the owner is a retiree who envisioned the home as a place where their grown kids and grandkids would gather for family weekends and vacations. After all, what young adult or family would turn down free getaways, right? 

Unfortunately, many have no choice. Conflicting responsibilities make it difficult to get away. And in the limited time they do have, grown kids often prioritize destinations of their own choosing, leaving their retired parents with vacation homes that sit empty most of the time.

A second home isn’t always a mistake, but wait until after you’ve settled into retirement, and consider a practice run with a seasonal rental before investing in your own place.

Most Insurance

Insurance company sales pitches can spook even the healthiest pre-retiree into buying cancer insurance, life insurance, insurance for final expenses, disability insurance, life insurance for grandchildren, insurance that pays your mortgage if you die — all of which are unnecessary for many retirees, according to AARP.

So what insurance do retirees need beyond health coverage? Essential policies include homeowners or renters insurance, including liability coverage. Also consider long-term care insurance, which covers in-home care and continuing-care retirement community costs in addition to nursing home care.

Share This Article: