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You’re Potentially Wasting Thousands: 8 Things U.S. Retirees Are Told to Buy (But Don’t Actually Need)

These common retirement purchases can stealthily drain savings over time.

By Stacy Garrels

Edited by Kristy DeSmit

Updated Feb. 26, 2026

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Retirement is supposed to be about fewer obligations and more flexibility. But for many Americans, it's also the moment when sales pitches ramp up. Suddenly, your inbox, mailbox, and phone are full of must-have products for seniors, all promising protection, income, and peace of mind.

Some of these offers sound responsible, but many are unnecessary for middle-class retirees.

If your goal is to maximize savings and avoid wasting money in retirement, here are several products retirees are commonly encouraged to buy that you may be better off skipping.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

A home warranty from Choice Home Warranty could pick up the slack where insurance falls short.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Whole life or cash-value life insurance

Life insurance exists to replace the policyholder's income for their dependents. Once you're retired, that obligation may no longer exist. Retirees, however, are still pitched whole life policies as "tax-advantaged investments" or estate tools.

These policies typically come with extremely high premiums, modest returns, and complex rules. If your children are financially independent and you have retirement savings, extra funds may be better off going into a different investment vehicle.

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Indexed annuities marketed as "guaranteed income"

Indexed annuities are often framed as safe products. They advertise major upside potential and limited risk, but read the fine print. There, things get murky.

You'll find caps, participation rates, surrender charges, and layered fees that can significantly limit returns. Additionally, these plans can lock away funds for several years.

Some planners and state governments actively warn retirees to steer clear. The Minnesota Attorney General advises that they are "unsuitable investments for seniors."

There are far simpler income strategies. Look for ones with greater transparency, flexibility, and comparable results.

Gold IRAs and precious-metal retirement accounts

Gold pitches get awfully loud during retirement. Precious metals can be appealing. They're marketed as a safe vehicle for protecting wealth from inflation or market swings.

In practice, gold IRAs often come with high setup fees, storage costs, and aggressive sales tactics. Additionally, gold does not generate any passive income. Other assets, like stocks, bonds, or real estate may generate dividends and cash earnings.

Limited exposure to commodities may make sense, but heavily investing your retirement savings into "safe" metals may prove perilous.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Premium credit monitoring or identity theft subscriptions

Identity theft is real, but many retirees already have protections in place. Credit card issuers, banks, and even Medicare offer free alerts and fraud surveillance.

And as the Government Accountability Office (GAO) points out, paid monitoring services cannot prevent fraud; they can only tell you about fraud after the fact. When data breaches happen, companies and government agencies commonly offer consumers free identity service protection going forward.

Staying abreast of fraud schemes is often a better bet than shelling out for spendy, premium plans.

Extended warranties and service plans

Retailers know that retirees value security. That's one reason why extended warranties are marketed so heavily to this demographic — especially for appliances, electronics, and vehicles.

Relative to the likelihood or cost of repairs, these plans are usually overpriced. Many major purchases already come with manufacturer warranties. As Consumer Affairs points out, in some instances, a warranty may wind up costing you more than any coverage it provides.

Always read the fine print first. It's often cheaper to pay out of pocket for the occasional fix than to purchase an upfront extended warranty.

Prepaid funeral and burial plans

No one wants to leave loved ones with a funeral bill. Planning ahead can feel responsible, but prepaid funeral contracts are rigid, pricey, and lock you into assumptions about future wishes and finances.

If circumstances change, funds are difficult to transfer or recover. In many cases, you're better off setting aside money in a payable-upon-death account. It can offer similar peace of mind, but with far more flexibility.

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High-fee managed investment accounts

Many retirees are steered into actively managed portfolios with high annual fees. These rates, often in excess of 1%, seem small. And they come with the promise of expert, hands-on guidance.

However, these fees can erode returns over time. Often, low-cost diversified strategies can outperform fee-heavy managed plans.

Lifestyle subscriptions sold as "retirement conveniences"

Meal kits, lawn services, premium travel clubs, and concierge memberships frequently pitch their services as retirement-friendly upgrades. Individually, they may seem cheap, but they can add up to a hefty monthly sum.

Retirement offers something that many people lacked before: time. Paying ongoing fees for tasks you can now do may not deliver the value promised.

Bottom line

Retirement doesn't require a line-up of new products and services; it requires better decisions. Many offerings that target seniors trade on fear, nostalgia, or the desire for certainty, but provide little tangible benefit.

Before committing your hard-earned money, pause a moment. Ask yourself if the purchase truly supports a stress-free retirement, and if any cheaper or simpler alternatives exist.

The Bureau of Consumer Protection is a great resource for consumers of all ages. It provides a wealth of information on scams, identity theft, unwanted calls, emails, and texts, and making smart decisions with your money.

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