5 Retirement Splurges That Can Save You Money in the Long Run
Written by
Cynthia Measom
Edited by
Jenna Klaverweiden
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In retirement, every purchase often feels like it needs to count — and splurging might seem like a luxury. But what if spending more now could benefit you down the road? Wisely investing money in your home, car, health and finances can help you come out ahead financially.Â
Here are five smart splurges retirees can make to save money in the long run.Â
Energy-Efficient Home Upgrades
Heating and cooling costs can rise as a house and its equipment age, but there are ways to reduce those bills.
Investing in better insulation and sealing leaky ductwork can lower energy use and keep things comfortable year-round. Additionally, installing a smart thermostat can make a noticeable difference, saving homeowners up to 15% annually, as reported by Better Homes & Gardens. And for those whose homes don’t have ductwork, an energy-efficient ductless mini-split unit could be ideal.
Reliable, Economical Vehicles
Although signing up for a car payment when you don’t have to might seem like the wrong move, it can depend on the reliability of the car you already have. Cars that break down too often can lead to surprise repair bills, which can wreak havoc on a retiree’s budget.
Look for affordable models that are known for their reliability and tend to need fewer repairs over time, like the Honda CR-V. According to Repair Pal, the reliability rating for the Honda CR-V is 4.5 out of 5, giving it a second-place rating out of 26 compact SUVs.
Travel Insurance
Even well-planned trips don’t always go smoothly. A canceled flight, lost luggage or a sudden health issue can quickly turn into a big expense. For retirees taking longer or international trips, travel insurance can provide added security.
And travel insurance plans don’t have to be expensive. Axa, for example, offers a plan for just $16 that covers many travel issues, including emergency medical care while abroad. Companies like Travelex also offer coverage for preexisting conditions with a lookback period.
Financial Planning Services
Some retirees find that working with a financial planner makes their money go further. Financial planners can help with retirement budgeting, investment planning and tax planning, but be prepared for the cost. For a specific service, like a comprehensive financial plan, you could end up paying about $2,000, according to Harness Wealth.
Hourly services are becoming more common, which can make financial advice more accessible for those with fixed budgets. Retirees who don’t want to spend thousands can also use DIY tools. For example, they could try out a retirement calculator or a retirement budgeting and investing app, like the one Betterment offers.
Health and Wellness Services
Regular exercise and preventive care can make a big difference in retirement. Activities like tai chi, water aerobics and walking are great for staying active without putting too much strain on joints. Preventive care, such as regular checkups and screenings, can also catch issues early before they become expensive to treat.
Spending money on these services can pay off in the long run, but be sure to also consider some more affordable options. For example, Medicare Advantage plans often include fitness programs like SilverSneakers, which provides free gym memberships.
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