With the high cost of almost everything, from groceries and healthcare to insurance and more — coupled with experts estimating the need for at least $1 million to retire comfortably — you may wonder if splurging in retirement goes against all common sense. The thing is, there’s a big difference between recklessly spending on items you’ll never use and occasionally splurging on items or experiences for your enjoyment.
Despite being financially well-off, around 25% of people spend less in retirement than they did in their working lives, according to the Consumer Expenditure Survey (CE). For many, the same habits that built their wealth, such as hard work, diligent saving, and financial restraint, make it difficult for them to relax and enjoy their money.
While it pays to be responsible with your money, especially if you’re on a fixed income, there are ways to splurge — pamper yourself, go all out and indulge — without giving up your financial security.
It’s totally worth making your house a home
You’ll likely spend a great deal of time at home in retirement. That’s why having a comfortable home — both physically and emotionally — is so important and worth splurging on. While you might be open to spending money to renovate in a way that helps you age in place, not everyone is comfortable spending money on purely aesthetic changes.
But economical treats, like upgrading to new appliances for the first time in ages, buying a comfortable mattress, some new backyard furniture, or swapping out that ugly old shag carpet, are renovations that can be well worth the cost. Just because you’ve lived this way for the past 20 years doesn’t mean you can’t indulge yourself to be comfortable in your own home.
Once your home is cozy, opt for adopting and spoiling a dog or cat if you're set up for it. The companionship and daily joy frequently top lists of regret-free retirement spends.
It’s totally worth spending money on staying healthy
Considering that diet-related illnesses cost more than $1 trillion annually, shaping our eating habits can lead to better health outcomes.
On average, retirees aged 65 and older spend about $7,940 annually on food, or roughly 13% of their total monthly expenses, according to the latest BLS data. In comparison, the average American household spends around $10,169 per year on food. That’s a difference of more than $2,200.
When the cost of groceries has increased by approximately 2.3% to 2.4% from 2024 to 2025 (according to official data from the USDA Economic Research Service), you may hesitate to dip too far into your wallet just for food.
Even so, eating a healthy diet can help reduce future medical costs by preventing chronic diseases and promoting overall well-being. By prioritizing healthy eating, you’ll not only improve your health and well-being but also save significantly on medical expenses over time.
Besides that, upgrading to better health insurance, leveraging physical therapy, investing in a gym membership, or premium dental or eye care often pays off, resulting in more active, pain-free years.
It’s totally worth treating yourself (if you can pay all your bills)
Living a happy and healthy life is more than just about paying the bills. While wise financial management is key for a comfortable retirement, it doesn’t mean you have to pinch every penny. This is especially true if you are well-off financially and can afford to buy all of the gadgets you want (or need).
After a while, if you no longer want or need those devices, consider having a garage sale (and meeting your neighbors) or selling them online. Some companies, like Apple, will pay you to turn in older electronics in good condition.
It’s totally worth having a hobby
Someone once said, “If you want to feel rich, just count the things you have that money can’t buy.”
CivicScience, part of Carnegie Mellon University, dove into the most recent data on leisure time and found that a staggering 89% of U.S. adults report pursuing a hobby. That leads us to believe there is a direct connection between pursuing interests and a person’s level of satisfaction with life.
Since you have an extra level of freedom (and time) in retirement that you didn’t have when you held down a job, there’s no reason to deny yourself the pleasure of a hobby, especially if it costs little to nothing at all, like birdwatching, planting a garden or going to a car show. When you choose to spend money on experiences, happiness seems to follow.
It’s totally worth bequeathing your money to your heirs
You can care for others without sacrificing everything, and leaving an inheritance for your kids is deeply fulfilling. Gifting money or assets while you're still alive lets your family benefit from your wealth when they need it most. It can help them buy a home, pay off debt, fund their (or your grandchildren's) education, or build wealth earlier in life when it has the most impact. It can strengthen family bonds and also minimize what the IRS takes out of your pocket.
The IRS annual gift tax exclusion for 2026 is $19,000 per recipient (the same as in 2025). Married couples can gift up to $38,000 per recipient by electing to split gifts.
It's totally worth spending some money on yourself
Saving for retirement is fiscally smart, but it’s okay to treat yourself sometimes — without the guilt. Worrying about running out of money is normal, but if you budget for spending, paying your bills, staying out of debt and maintaining an emergency fund, splurging on travel, a dream car, or a vacation can be rewarding.
Finally, how much should you splurge during retirement?
Assess your finances honestly to determine how much you can spend on yourself. If your current habits cover basic needs and allow a percentage to be put into savings or invested, you likely have more to spend than you think.
Prioritize paying bills if money is tight, but even a small surplus can fund a dinner out to boost your retirement enjoyment.
Avoid a Scrooge mindset — budget for small joys and then, go ahead and savor the rewards of all your hard work.
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