Retirement is a big change for your lifestyle and your finances. If you’ve recently retired, there’s a good chance you’re still getting used to the new normal. One move you might want to make is signing up for a Costco membership, if there’s a warehouse in your area and you’re not already a member.
Costco is popular with most age groups, and has over 73 million members nationwide. There are a few reasons, in particular, that it’s well worth it for seniors.
It’s an affordable place to shop, especially if you buy in bulk
When you’re retired, managing money is extremely important. Many retirees need to be careful about how much they spend. Social Security benefits only replace about 40% of pre-retirement income, on average. You’ll need to get by on that and what you have in your retirement accounts.
Luckily, saving money at Costco is easy. It offers competitive prices on most of its products, and it does that without sacrificing quality. One of the reasons people shop at Costco, in addition to the low prices, is the quality and freshness of its food products.
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You can get an even better deal if you buy in bulk. Not only will you save money overall, but by stocking up, you could cut down on how many shopping trips you need to make every month.
You can shop at off hours and skip the lines
The biggest downside of shopping at Costco may be how busy it gets. On weekends and around holidays, warehouses are usually packed, which makes for a much slower and more stressful shopping experience.
For people who are working full time, it’s not always possible to avoid the crowds. You shop when you can, and that’s often when everybody else can, too.
As a retiree, your schedule is much more flexible. You’ll be able to shop at off hours and get all the benefits of shopping at Costco, without navigating around people and waiting in long checkout lines. The best time to shop at Costco depends on the warehouse, but shoppers at many locations report that the middle of the day during the week is a good choice.
Costco has low prices on prescription medications and healthcare products
Healthcare costs tend to go up in retirement. You might find yourself spending more on prescription drugs and healthcare products, such as vitamins, glasses, and hearing aids.
Those are all products you could get at Costco, and potentially at a lower price than you’ve been paying elsewhere. Consumer Reports found that Costco had the lowest prescription drug prices of any major retailer and the lowest median price for new glasses. To score some additional savings, open one of the top credit cards for Costco shopping and use it to earn cash rewards on your spending.
It has a risk-free return policy
Costco’s return policy is about as good as it gets. It has a 100% satisfaction guarantee on every product it sells, and on most of them, there’s no time limit to when you can make a return. People have returned items to Costco after months and even years for a full refund.
There are limited exceptions. Electronics have a 90-day return window. Select items, including gold bars, cigarettes, and alcohol, can’t be returned. But for the most part, you’re free to return anything you buy at Costco. If you end up not using something you buy, or if you try a new snack that you don’t like, you can get your money back.
That risk-free return policy also applies to your Costco membership. Annual membership fees start at $60 for a Gold Star membership and $120 for an Executive membership (these are going up to $65 and $130 on Sept. 1, 2024). If you decide Costco isn’t right for you, you can cancel at any time and get your membership fee refunded.
Everyone builds a new routine for themselves when they retire. Consider adding Costco to that routine. You’ll be able to stock up on what you need and save money in the process.
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