10 Things You Should Not Buy at Costco While on a Retirement Budget

On average, people age 65 or older earn about $4,220 a month, according to the U.S. Bureau of Labor Statistics.

For retirees with low bills to pay and minimal or no debt, that kind of income can go a long way. But for others, such as retirees living in more expensive areas, that amount can disappear all too fast.

If you’re living on a retirement budget, one place you might choose to shop is Costco. This big box store has a lot to offer at reasonable prices.

But not everything at Costco is a steal. And if you’re on a fixed income trying to make ends meet, certain things are best avoided.

Here are the top items you shouldn’t buy at Costco while on a retirement budget, according to experts.

Also see how Costco shopping can help your retirement budget.

Costco has plenty of bulk items to choose from; but, if you aren’t going to use everything you buy, say goodbye to any savings.

“Most people who have retired are not only on a tighter budget but also in a smaller household. They may live alone or with a partner, but they’re not likely to be feeding a crowd either way,” said Julie Ramhold, consumer analyst at DealNews. “Because of that, unless you’re using the produce to make jams or jellies, or pickling for later, there’s a good chance it will go off before you can consume it all.”

Instead of buying fresh veggies and fruits in bulk at Costco, shop at grocery stores like Aldi or Kroger. These stores often have better prices, even for smaller amounts.

It’s not just fresh produce that retirees on a fixed income should avoid — it’s anything that’s set to expire soon after purchase.

“Food is a big item where there is much waste,” said Kathleen Owens, certified financial planner candidate at Aurora Financial Planning & Investment Management LLC. “Lots of food gets thrown away. Fresh food doesn’t last forever. Opt for frozen food whenever you can, so you can use portions as needed.”

When you’re living on a fixed income, having a shopping list and sticking to it is essential to ensuring you don’t go over budget. So, the next time you’re at Costco, skip anything not on that list.

“Non-essential items like clothing and accessories can often be found at lower costs elsewhere,” said Jonathan Rodgers, CFA at BestDaily.

Other non-essential items may include books, toys or electronics. All of these can eat into your budget.

Steer clear of fancy or single-use cleaning supplies, too. This includes toilet bowl cleaners, napkins and other household cleaners.

“Fancy cleaning products can also be a budget buster,” Owens said. “Swifter dusters and wet cleaning pads are pricy and can’t be reused and are bad for the environment.”

Instead, stick to multipurpose cleaners or rewashable cloths.

You can find an array of electronics at Costco, including televisions and home entertainment systems, but these aren’t always worth the price. Rodgers pointed out that many of these items aren’t the latest models, which could mean earlier replacement parts or upgrades.

If you are in the market for new electronics, compare prices at Costco and other stores, like Best Buy or Amazon. Also, check customer reviews to see what people are saying.

Certain items, like batteries, are also a potential waste of money at Costco.

“Buying a pack of 24 batteries because it’s a deal is usually a waste of money unless your household uses a lot of batteries,” Rodgers said. “Batteries lose their charge over time and do have an expiration date.”

It’s important to eat healthy, especially as you get older. So, as tempting as those chips or cookies might be, try to avoid them. Even if the price is low, the calories — and sugar intake — won’t be.

“Be cautious with large quantities of bulk snacks and processed foods, as these may contribute to health issues in the long run,” Rodgers said.

Costco sells indoor and outdoor furniture designed to meet anyone’s aesthetic preferences. Some of these items come at reasonable prices, but you might be able to find lower prices at discount stores like Big Lots.

Regardless, buy only the things you truly need.

“Consider refraining from purchasing furniture or home decor items unless they align with an immediate need, as these non-essential expenditures can strain a tight budget,” Rodgers said. “Staying mindful of these considerations ensures that your purchases align with both your financial constraints and long-term well-being in retirement.”

“Costco has a lot of great things, but their book selection isn’t one of the winners. Sure, there are box sets and bestsellers, but beyond that you might not find many options,” Ramhold said. “While it’s worth checking to see if Costco has a better price on the latest NYT bestseller you want to read, if you’re on a retirement budget, you’re better off looking elsewhere.”

Alternatively, visit your local library — or check out the online catalog — and see whether you can borrow books. You can often get e-book or audiobook versions of whatever you want to read delivered directly to your account.

You can get OTC medication at Costco, but don’t stock up too much. Even medicine has an expiration date, and you don’t want to end up with something you can’t use.