When retirement arrives, United States citizens find it more difficult to make some purchases. What’s more, many expensive purchases, such as large homes or expensive boats, often give a headache after retirement because maintaining those types of properties is expensive. However, there are some purchases that everyone should make before reaching retirement age.
The Social Security pension is not always enough to maintain expensive or luxurious homes. That’s why many workers continue in other jobs after retirement on a part-time basis. This allows them to maintain their lifestyle. But what is the payment for this? The retirement break never comes.
That’s why some of the purchases United States retirees make before they stop working are intended to be a great investment. It’s the way they can maintain their lifestyle with their Social Security pension. But what are these four purchases every working person should make before retirement? Here are the four purchases we consider essential.
Some of the purchases we recommend to retirees before they finish their jobs are material, but other purchases are investments. Either way, these purchases should be on your list as of right now. It will be the best investment you can make during your time as a worker.
Home improvement items
One of the most common purchases retirees make before retirement is making home improvements. This tends to be a costly affair as it is estimated that people spend an average of $20,000 on fixer-uppers. Replacing old windows, repairing structural problems or putting on a new roof are some of the most common work.
Moving into retirement means learning to live on a fixed income, the Social Security payment, so acquiring big-ticket items in traditional employment years can smooth out the bumps when it comes time to have that budget locked in retirement.
Although many retirees turn to Medicare for their health coverage in retirement, the truth is that Medicare does not cover most dental care needs. What does this mean? Well, many retirees, before they reach retirement age, decide to get their dental work done.
Thus, even if Medicare does cover some dental services, retirees will not be faced with a large out-of-pocket expense when they receive their Social Security payment.
Retirees who are interested in diversifying their portfolios for retirement may want to consider purchasing Treasury bonds during those early retirement years.
Securities that are issued by the Treasury, such as savings bonds or Treasury Inflation Protected Securities (TIPS), are not subject to interest rate movements.
These bonds may help protect your cash, which does not have much inflation protection.
America the Beautiful Annual Pass
Your early retirement years may include a lot of travel to destinations within the United States, such as national parks. You’ll be able to enjoy these parks while staying within your Social Security payment budget with the America the Beautiful annual pass.
You can purchase this annual pass for $80 through the United States National Park Service. Each annual pass can have up to two “owners” and is valid for one year. Pass holders have access to more than 2,000 recreation areas managed by five federal agencies.