Is a Costco Membership Worth It in Retirement? 5 Factors To Consider
Written by
Cody Bay
Edited by
Gary Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
If you’re retired, you probably don’t have a house full of mouths to feed, but that doesn’t mean you’ve grown cold to saving money. Though stocking up on bulk quantities of anything at a big warehouse store may seem more in the realm of growing families or business owners, it’s beneficial for retirees as well.
A personal Costco membership costs $65 a year. Given that retirement likely means living on a fixed or more limited income, is it worth it?
Ravi Wadan, a personal finance expert whose Costco hacks are known to go viral, told GOBankingrates that for seniors, there are plenty of worthwhile savings to be found beyond the bulk food isles and even the destination-worthy gas prices. Generally speaking, he said that Costco’s value starts with something you can’t really put a price tag on — quality and trust.
“They’ve vetted their products pretty extensively, right? Their buyers are so good that everything there is there for a reason, because it meets their criteria and the standard that they hold themselves to,” Wadan said. This goes along well with Costco’s strategy, which largely is to source a more limited selection of products, prioritizing quality over quantity, and independently testing items before they hit the shelves.
Secondly, Wadan cites Costco’s “risk free 100% satisfaction guarantee” return policy that helps give retirees or anyone living on a limited income the peace of mind that they won’t be wasting their money. With that in mind, here are some other reasons why a Costco membership is worth it for retired folks.
Tech Devices and Support
Costco offers consistently competitive prices on tech and devices, from computers, tablets and smart watches to TVs and home security systems. What Wadan especially appreciates for seniors is the free tech support Costco offers on electronics. They have an extensive library of help guides available online for many of their products to help people set up or troubleshoot, and live technical support is available by phone.
“Technologies just change at such a rapid rate. I think especially for our older citizens, it can be very difficult to keep up with it,” Wadan said. “I think a lot of them buy electronics, like an iPhone or iPad or a TV, and they just don’t know how to use it, or don’t know the connectivity or how to start their Netflix app on a new smart TV. Costco’s tech support would be very valuable for a lot of those individuals.”
Prescriptions
For people taking regular medications, the Costco pharmacy’s discounted prices on prescriptions alone can easily cover the price of membership in a short time.
Costco promises up to 80% savings on popular medications. You can use their online price comparison tool to look up a few common medications. You’ll often find that Costco beats out your average pharmaceutical competitor in general pricing or discounts.
The prescription discounts aren’t just for humans. Costco also offers pet medications through their pharmacy at a discount, to help your furry companions enjoy their permanent retirement more affordably.
Travel Packages
Wadan touts the Costco travel packages available to its members as one of the commonly underused benefits — and one that’s particularly advantageous to seniors. Their competitively-priced packages include cruises, flights, hotels and car rentals. They feature destinations both across the U.S. and international (Europe, Mexico, the Caribbean and more). Some also include local tours and transportation.
“You might be able to find a cheaper price, but, for the most part, it’s pretty rock bottom on Costcotravel.com, and, and I think you just get a lot of benefit from it,” Wadan said.
“I think that a lot of retired people like my parents, they don’t want to spend hours trying to research where to go, how to get their transportation, etc. Costco travel is great for that,” Wadan added. “They have great customer service. So if you have any questions, like, for instance, I booked my parents a Mexico package last year, and they missed their flight. And instead of dealing with the airline, I just called Costco travel, and they pretty much rearranged the whole itinerary. That was a huge time saver.”
Discount Restaurant Cards
Another often-overlooked source of savings at Costco, according to Wadan, are their gift cards — especially if you gift them to yourself. You can score discounts on everything from restaurants and movie tickets to concerts and sports events like major league baseball games and NASCAR races.
Savings are typically around 20% of the card’s face value.
Don’t Forget the Grandkids
Costco perks for seniors don’t end with tech support and prescriptions. Retirees shouldn’t necessarily skip past the bulk isles when it comes to spoiling their grandkids.
Items like mac and cheese, wrapped cookies or even a seasonal toy or two are a great addition to your grocery cart — and offer big savings.
Caitlyn Moorhead contributed to the reporting for this article.
More From GOBankingRates
