Keeping up with the economy has been a full-time job lately and no one can predict what’s going to happen next year. But retirees in particular need to be careful about when to make large purchases.
When you’re living on a fixed income, it’s more important than ever to be sure you’re getting the most value for your money and sometimes that means putting things off. Here are four big purchases retirees should avoid in 2026.
New Cars
The cost of new cars is up, although it may not be apparent at first glance. USA Today reports that automakers are increasing fees, like delivery and destination fees, rather than adjusting the manufacturer’s suggested retail price or MSRP, of new cars. Even though the retail prices are only increasing slowly, this fee increase raises the cost of a new car to the buyer.
Retirees should consider purchasing a used car rather than a new one to save money. In addition to the increased cost of a new car in 2026, Carfax says that new cars traditionally lost 20% of their value in the first year and about 15% per year after that. That means that a car that cost $50,000 new would be worth about $29,000 in three years. Because three years is a typical lease term, you can often get a three-year-old car with relatively low mileage that’s just come off a lease, for a lot less than a new car.
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Boats and RVs
Buying an expensive “toy” like a boat or RV may seem like a good idea for retirees, but make sure you know exactly what you’re getting into. The purchase price of items like these is just the beginning. There are also ongoing operating costs, maintenance costs and the cost to store a boat or RV. It’s common to overestimate the number of times you’ll use one of these expensive toys and you may have to take a loss when you try to sell it.
If your heart is set on hitting the high seas or taking that cross-country RV trip, consider renting a boat or RV instead, at least the first few times. You’ll get a true feel for the total experience and will be better able to make an educated decision on whether a purchase is right for you.
Significant Home Improvements
With tariffs still in place for many products, 2026 is not the year to do significant renovations to your home. The National Association of Home Builders says that approximately 85% of the softwood lumber imported into the United States comes from Canada. Tariffs on Canadian lumber is at a whopping 45% as of February 17, 2026, acccording to The Architect’s Newspaper.
While it’s tempting to update your kitchen or bathrooms, either because you’d like to downsize or they’re just out of date, these kinds of major projects will be extra pricey in 2026. Sprucing up your home with a coat of paint or new décor may make more sense in 2026.
Overseas Vacations
Since it’s more expensive for other countries to bring goods into the United States, you may be thinking that vacationing outside the country will be less expensive. This isn’t likely to be true. Financial experts like Morgan Stanley are expecting the dollar to be volatile in the upcoming year. While this could mean the dollar is stronger against the local currency when you leave for your trip, it could also mean that purchases abroad are more expensive than you might have planned for.
Spending in retirement requires careful planning, but if you avoid making these large purchases in 2026, you may be setting yourself up for success down the road.
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This article originally appeared on GOBankingRates.com: 4 Big Purchases Retirees Should Avoid in 2026
