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Your nest egg is probably on the radar of at least a few exploitative individuals. It’s common knowledge that most retirees have at least some wealth to live off of, and that makes them vulnerable to bad actors.
It’s not just scam artists you need to be wary of, but also some of your friends and family who may not have your best interests at heart.
Here are five types of people you should be cautious about in 2026 and beyond.
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From home equity agreements to reverse mortgages, there are plenty of credit products designed for older adults and retirees.
These lending arrangements may not be outright scams, but the complex terms and conditions built into them give predatory lenders lots of room to maneuver and take advantage of unsuspecting retirees.
The Senate Special Committee on Aging, along with agencies such as the Government Accountability Office (GAO) and advocacy groups like the American Association of Retired Persons (AARP), has several times examined how older Americans are targeted by subprime and home‑equity lenders, including schemes encouraging refinancing, high‑cost loans, or other credit arrangements with unfavorable terms. (1)
Simply put, retirees are more likely to be approached by a predatory lender. If something seems off, politely decline and seek independent advice.
Everyone, regardless of age, is vulnerable to pushy and aggressive salespeople. However, older adults are especially targeted because they are often viewed as being better off financially and more trusting.
From unnecessary medical safety products and expensive home improvements to unsuitable financial products, merchants of mis-selling have plenty of tools to trap vulnerable older consumers.
For instance, a report by the Senate Finance Committee found that insurance companies had significantly increased their spending on brokers and agents to promote Medicare Advantage plans, which were often aggressively marketed to older adults and, for many insurers, were nearly twice as profitable as other private‑market plans. (2,3)
That’s one of many examples of how older adults and retirees are targeted with aggressive sales and marketing tactics that often trap them into bad deals.
To limit your risk, block unsolicited calls and email pitches, look for red flags such as false urgency while dealing with salespeople and reach out to a trusted loved one or advisor before you sign any contract.
Since you’re spending a lot more time at home during retirement, it’s tempting to splurge on home improvement projects and upgrades. But picking the right contractor for the job is essential.
Older customers are often targeted by bad contractors, who can leave your home in disrepair and your savings diminished.
According to a survey cited by the National Council on Aging (NCOA), one in 10 Americans has experienced contractor scams, and those over the age of 60 were particularly vulnerable. (4) On average, victims of these home improvement swindles lost $2,426.
Protect yourself by carefully vetting contractors and seeking out referrals and testimonials before you sign up for a new project.
Read More: This is the quiet portfolio shift many wealthy investors are making in 2026. Should you consider it too?
Mixing money and relationships is often tricky, especially if some of your friends and family members see you as an easily accessible bank.
It’s not easy to refuse financial support to people in your network, but it doesn’t always end well.
More than half (51.6%) of those surveyed by JG Wentworth said they had borrowed money from a friend or family member in the past year, and slightly less than half (46.6%) said the financial arrangement led to “serious arguments or conflicts.” (5)
Frequently offering financial support, with little hope of recovering the money, can cause stress and jeopardize your own retirement plan.
Protect your nest egg by strictly limiting the amount of support you offer, and, if possible, formalize the arrangement so that there are clear timelines and expectations of repayment.
The Consumer Financial Protection Bureau offers a worksheet specifically for managing informal loans between friends and family. (6)
Insider tips and investment advice from influencers on social media could be tempting when you’re living on a fixed income and looking for ways to expand your nest egg.
But these unregulated investment tips often come with hidden risks. Many of them are outright scams that could reduce your wealth instead of enhancing it.
In 2023, the FBI’s Internet Crime Complaint Center (IC3) received 6,443 complaints of investment fraud. (7) Although it’s not the most common type of fraud, the agency claims it is the most expensive. That year, victims collectively lost $1.2 billion to these get-rich-quick scam artists.
So, if someone is pitching a new cryptocurrency or penny stock idea that seems suspicious, don’t take their advice.
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Women’s Congressional Policy Institute (1); Center for Retirement Research at Boston College (2); Senate Finance Committee (3); National Council on Aging (NCOA) (4); J.G. Wentworth (5); Consumer Financial Protection Bureau (CFPB) (6); FBI (7).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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