7 Expensive Retirement Splurges That Are Worth Every Penny
Written by
Jordan Rosenfeld
Edited by
Ashleigh Ray
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For the average retiree, retirement is a time of conserving money, focusing on budgeting and limiting expenditures.
However, it’s also when you finally have time to give to some of the activities that you couldn’t do while working, such as focusing on leisure, hobbies and other things that bring you joy.
So, while it’s good to be budget-conscious and frugal at this stage of life, there are some expenditures that are absolutely worth making in retirement. Experts explain some of the best retirement splurges that you’ll agree are worth every penny to enjoy.
High-Quality Bedding
A good night’s sleep is essential for both physical and mental health, said Eric Croak, a certified financial planner (CFP), accredited wealth management advisor and the president of Croak Capital.
As we age, a comfortable space to rest only becomes more and more important.
“You spend a third of your life in bed, so make this time as enjoyable as possible,” Croak said. “Investing in high-quality bedding might seem extravagant, but it can significantly improve your sleep quality.”
Croak recommends premium sheets and pillows, made from soft, luxurious materials. “[They] not only feel great against your skin but also tend to last longer, which means they save you money over time.”
Visiting Loved Ones
Retirement’s flexible schedule lets you spend more quality time with those you love, which is always worth it.
“Spending time with family and friends often brings more happiness than material purchases,” said Croak. “If your relatives live in different states, think about setting up a visiting schedule or planning trips well in advance. This allows you to budget for travel costs, plan activities and get ready for your time away.”
Croak says experiences and memories are invaluable and will last much longer than any typical workday.
He continued, “Don’t miss out on family vacations, hiking the Pacific Crest Trail or spending March in Florida if that’s what brings you happiness and fits into your budget.”
A Business or Profitable Hobby
Since you’re retired, you have the freedom to explore new ventures (like a second act), such as consulting, selling crafts on Etsy or turning your garage into a woodworking shop, Croak added.
She said, “It’s fine to invest some money in these pursuits, as long as you can make them profitable. In fact, you might even turn your hobby into a source of passive income during retirement.”
Concierge Healthcare
“Health is wealth, especially during retirement,” Croak pointed out, so investing in that is a great way to use your money.
Croak said, “As you grow older, paying for concierge care, which usually costs between $1,500 and $2,000 a year and isn’t typically covered by insurance, can offer a wide range of medical benefits.”
This kind of medical care, also referred to as membership medicine, retainer medicine or direct primary care, allows for same-day or next-day appointments and longer visits with your doctor. Some plans even provide 24/7 access to your primary care physician.
Special Events
According to Dawn-Marie Joseph, the founder of Estate Planning & Preservation, if you have the means, you should consider participating in special events that will make important memories.
“Maybe it’s a wedding, surprise birthday party for a loved one or celebration. If it’s truly making a memory and not wasting money, then the cost will likely be worth it,” Joseph continued.
“Memories are priceless, so splurge when you want if your budget allows. If you have to dip into your bank account, remember to weigh the pros and cons before doing so.”
Travel
Another expensive, unexpected splurge in retirement could be a luxurious vacation, Joseph said.
Travel is quite expensive in these high inflationary days. According to a study by AARP, older adults will spend an average of $6,659 this year on travel and leisure activities.
“[However] a new adventure may be a memory you cannot mentally afford to turn down,” Joseph said. “If the expensive trip sets you financially behind, look into ways you can make the money back.
“Consider certificates of deposit (CDs) and money market accounts. With interest rates at all-time highs, these products can help you get back to where you were prior to the splurge.”
Wellness and Fitness
Another worthwhile splurge for retirees can be investing in their physical and mental wellness, said Abid Salahi, the co-founder of FinlyWealth.
“This may include joining a premium gym or health club, hiring a personal trainer or engaging in costly but beneficial hobbies or activities,” Salahi continued. “According to a survey by the International Health, Racquet and Sportsclub Association, retiree gym memberships can range from $40 to $100 per month, depending on the facility and amenities.”
However, Salahi says that many retirees find investing in their health and overall quality of life to be priceless. “Planning and budgeting for these splurges well in advance is crucial to ensure they don’t jeopardize your long-term financial security.”
Splurges can contribute positively to your quality of life and mental and physical health, so long as you plan for them and budget accordingly. Consider consulting a financial planner in advance of retirement to help you plan for such extra expenses.
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