Here’s What Retirees Wasted the Most Money On in 2025 — and How To Avoid It in 2026

Core Insights - Many new retirees struggle with budgeting for their new lifestyle, leading to potential overspending [1] Group 1: Healthcare Costs - Healthcare is one of the largest expenses for retirees, and many underestimate their medical costs in later years [3] - Retirees are advised to utilize the annual enrollment period (October 15 to December 7) to select the best Medicare plan, which could save them over $1,800 [4] Group 2: Overspending Habits - Common overspending areas for retirees include unused subscriptions and impulse purchases, with an average of nearly $200 spent monthly on food delivery and coffee [6] - Financial experts recommend maintaining two separate budgets: one for essential needs (housing, healthcare, utilities) and another for discretionary spending (travel, entertainment, hobbies) [6] Group 3: Home Improvements - Increased time at home may lead retirees to invest in home improvements, which can significantly impact retirement funds if not managed properly [7] - The rising costs of home remodeling can result in substantial tax implications if funded from taxable retirement accounts, suggesting that such projects should ideally be financed through cash flow before retirement [8]