Wealthy in Retirement: Where the Upper Class Cuts Costs–and Where They Splurge

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For most retirees, retirement means trimming expenses and learning to live within fixed limits. For the wealthy, though, the calculation is different.
“When it comes to spending, wealthy people don’t deprioritize anything, really, since they can afford to pay for it,” said Nick Hamilton, national manager of Alliant Retirement and Investment Services.
Instead of deciding what to give up, wealthy retirees tend to focus on tax efficiency, legacy planning, and making sure their heirs aren’t saddled with unnecessary costs.
“The focus becomes less about cash flow and more about how to pass wealth efficiently,” Hamilton explained.
Here’s where the wealthy often cut costs — and where they spend freely.
Where the Wealthy Cut Costs
Housing
Even millionaires don’t want to waste money on upkeep. Hamilton said many downsize to a home that’s easier to manage as they age.
“They recognize they won’t be able to handle the stairs forever, and they want to move while they’re still young enough to do it,” he said.
The move often frees up cash from selling a larger property. Wealthy retirees are more selective about second homes too, weighing the carrying costs against the freedom of renting or traveling.
Their Heirs’ Taxes
The Secure Act 2.0 changed how non-spouse heirs inherit retirement accounts. Instead of stretching distributions over a lifetime, heirs must empty accounts within 10 years.
That can push adult children into the highest tax brackets during their peak earning years. Wealthy retirees now devote significant energy to Roth conversions and estate strategies to ease that future burden.
“We spend so much time educating clients on how their wealth will transition,” Hamilton said.
Estate Planning
Hamilton noted wealthy retirees often resist formal estate planning because it forces them to confront mortality, but skipping it can be costly. Probate fees and frozen accounts can drag on for a year or more.
“They don’t want to spend $3,000 to $5,000 on an attorney now, but their heirs will pay far more if there’s no plan,” Hamilton warned.
Where the Wealthy Splurge
Health
Hamilton said that longevity is a top priority for his wealthy clients.
“They’ll spend limitless money on their health and well-being,” he said. “They want to live as long as they can.”
This translates into paying for personal trainers, tennis lessons and country club memberships.
“Almost all my wealthiest clients spend on activities that are expensive but keep you physically fit,” Hamilton added.
Grandchildren
When retirees don’t need required minimum distributions for themselves, they often funnel the money straight into grandchildren’s college or custodial accounts.
“It almost always skips a generation,” Hamilton said. “They know their kids will inherit eventually, but they can see their grandchildren benefit now.”
Hobbies
Wealthy retirees stay remarkably busy — sometimes busier than during their careers. Many dive into expensive hobbies like golf, tennis or skiing, while others channel their energy into gardening clubs, local organizations or even part-time consulting.
“They don’t like to be idle,” Hamilton said. “Retirement often makes them more active, not less.”
Philanthropy
With both time and resources, many wealthy retirees dedicate themselves to causes that matter to them. Running charity events, funding scholarships or building foundations lets them see their wealth at work while they’re still alive.