I’m a Financial Planner: Here’s What My Wealthy Retiree Clients Splurge and Save On
Written by
Josephine Nesbit
Edited by
Zuri Anderson
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The wealthy often play by a different set of rules. While most retirees watch every dollar, high-net-worth individuals are surprisingly intentional about where their money goes.
Many wealthy retirees don’t splurge on everything just because they can; however, some expenses are worth every penny. According to financial planners, here are what their wealthier retiree clients splurge and save on.
What Wealthy Retirees Splurge On
“For many retirees, it’s all about experiences,” Carlos Rodriguez, a financial planner for Edelman Financial Engines, wrote in an email. “Multi-month trips that cover multiple countries or family reunions where everyone comes together are popular.”
Others will splurge on their dream purchases, whether it’s a car, boat or second home, they now have more time to enjoy.
“Many also find joy in supporting their loved ones with life-changing purchases like paying for a child’s college, wedding, or first home or even making big charitable gifts,” Rodriguez added.
Srbuhi Avetisyan, digital marketing manager at Owner.One and co-author of Penguin Analytics, one of the largest studies on wealth continuity worldwide, also pointed out that spending by wealthy retirees often goes toward heritage-driven assets, such as jewelry collections, multigenerational travel and legacy homes.
“According to our case studies, families with annual incomes between $3 and $99 million disproportionately spend their retirement funds on items that will have symbolic value for their heirs rather than on everyday necessities,” Avetisyan explained. “This explains why 31% of assets are kept in safes, real estate or vaults; these are frequently more for legacy display than for investment return.”
What Wealthy Retirees Save On
Rodriguez wrote that retiree clients tend to be most careful about healthcare spending.
“Healthcare tends to be their big concern. Future long-term care costs or needing to renovate a home for in-home care can weigh heavily on their savings,” he explained.
Avetisyan has also seen wealthy retirees be cautious about the continuity of healthcare, as well as liquidity.
“Many over-index on medical provisions while underestimating tax or probate timelines,” Avetisyan explained. “Our data shows that 47% of wealthy families concentrate assets in a single jurisdiction, and one motivation is ease of access to local healthcare funding. They also save specifically to cover long-term care and insurance structures that won’t disrupt intergenerational transfer.”
Some wealthier retirees also save to help support their families.
“Some also hold back on spending for themselves because they worry about supporting family members who overspend or those who have special needs,” Rodriguez wrote. “Even when they have more than enough for themselves, many want to make sure their money lasts for multiple generations, not just their own retirement.”
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