Yahoo Finance Is a Costco Membership Worth It in Retirement?
If you’re retired, you probably don’t have a house full of mouths to feed. So, stocking up on bulk quantities of anything at a big warehouse store may seem to be more in the realm of growing families or business owners.
According to a recent GOBankingrates survey, a whopping 64% of respondents over the age of 65 said they do not shop at Costco. That tracks with insights from retail data firm Numerator, which finds that baby boomers make up just 35% of Costco members.
Check Out: 10 Best New Items at Dollar Tree in June 2024 To Save Money
Try This: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
A personal Costco membership costs $60 a year. Given that retirement likely means living on a fixed or more limited income, while you’re also not shopping for a crowd, 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. According to Brand Credential, Costco’s strategy 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. (For example, an 11-inch iPad Air is retailing for about $30 less at Costco than through Apple.)
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 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.”
Be Aware: 5 Expensive Costco Items To Buy Online on Amazon Instead
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. We used their online price comparison tool to look up a few common medications. Lipitor, used to prevent cardiovascular disease, was $10 at Costco, versus $16 at a Safeway pharmacy. Celebrex, an anti-inflammatory drug commonly used to ease arthritis pain, listed for $23 at Costco, compared to $47 at Walgreens for a 90-day supply.
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. Some recent discount cards available online include a $100 Instacart eGift card for $80, a pair of $50 Topgolf eGift cards for $80, and a Southwest Airlines $450 eGift card that’s worth $500, to name just a few.
Don’t Forget the Grandkids
Another expert we consulted, R Persichitte, a financial planner with Delagify Financial and self-described “Costco fanatic,” also advocated for many of the Costco perks for seniors discussed above. Plus, he said retirees shouldn’t necessarily skip past the bulk isles.
“While a smaller benefit, you can also stick to the dry goods section of Costco if you don’t think you will consume enough to make it worth it,” Persichitte said. “Mac and cheese for the grandkids or individually wrapped cookies stay good for years and offer big savings.”
More From GOBankingRates
Barbara Corcoran: 3 Cities To Invest in Real Estate Now Before Prices Skyrocket
This is The Single Most Overlooked Tool for Becoming Debt-Free
This article originally appeared on GOBankingRates.com: Is a Costco Membership Worth It in Retirement?
