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Many retirees live on a fixed income. Read on to see how Costco can help you make the most of yours. [[{“value”:”

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The average baby boomer today has $120,300 in retirement savings, reports Northwestern Mutual. If your savings look similar, then you may be heavily reliant on Social Security to make ends meet. But seeing as how the average monthly benefit among retirees was just $1,907 at the start of 2024, you may be struggling to cover your living costs if your savings aren’t particularly robust.

That’s why it could pay to consider a Costco membership if you’re largely living on Social Security. Here are a few ways Costco could work wonders for your budget.

1. Savings on medication

Costco’s pharmacy could save you a nice amount of money, depending on the prescriptions you take. In fact, the Member Prescription Program could result in up to 80% savings on popular medications.

Now, you should know that this program is not available to you if you’re enrolled in Medicare. But Medicare eligibility doesn’t begin until age 65, and some seniors retire on Social Security before reaching that age. And while going without health insurance is a risky move, if that’s the boat you’re in, you can potentially lower your medication costs substantially by taking advantage of Costco’s Member Prescription Program.

2. Savings on supplements

Many seniors take supplements regularly to promote joint health or good health in general. Costco offers a world of savings on vitamins and supplements. For example, Kirkland Signature Glucosamine & Chondroitin costs just $0.10 per tablet when ordered online for a 280-count bottle. And in-store prices are usually cheaper. On Amazon, you’ll pay $0.17 per pill.

3. Discounted gas

Once you’re retired, you may not drive as frequently as you did while you were working. But you still need to get places. And Costco can help you get around town for less thanks to its low-cost gas. If you decide to join, it pays to time your Costco shopping trips to when your tank is getting low.

4. Affordable eyeglasses

Costco’s optical center offers a range of affordable eyeglasses at competitive prices. You can also get a low-cost eye exam at Costco. That’s important, because if you’re a retiree who gets health coverage through Medicare, eye exams and glasses are not a covered service. So if you’re forced to pay out of pocket, you might as well pay less.

5. Affordable hearing aids

Hearing aids are another thing that Medicare won’t pay for, even though many older Americans need them. Costco’s hearing aid centers allow you to get your ears tested, and from there, you can work with a specialist to find an affordable hearing aid that’s best for you. When you buy hearing aids through Costco, you’re also eligible for free remote follow-up services, such as if your hearing aids need to be adjusted (believe it or not, this can often be done remotely).

6. Competitively priced vacation packages

Once you’re retired, you may have more time on your hands to travel. If your income consists mostly of Social Security, it may not be enough for you to jetset around the world multiple times a year. But you may be able to swing a nicer vacation once every couple of years. And in that regard, it pays to use Costco’s travel service, which gives you access to hundreds of affordable cruises and vacation packages. Use the right travel rewards credit card to book and you could also enjoy points or miles for your next trip.

7. Bulk grocery discounts

At this point in your life, you may be an empty-nester with just yourself or yourself and a spouse or partner to feed. But still, you need to eat. And it could pay to buy certain grocery staple items at Costco for the bulk savings.

If you eat a lot of produce, for example, and you also tend to cook with it often, then it could make sense to buy greens and other vegetables at Costco. Similarly, you may find that your favorite cereals, grains, and cooking oils are more affordable at Costco on a per-ounce basis than at your regular grocery store.

It’s worth considering a Costco membership

Many seniors worry about money. If you’re on a fixed income, it could pay to consider joining Costco for the savings involved.

Unfortunately, Costco does not offer senior discounts on memberships. But a basic membership at Costco costs just $60 a year, while an Executive membership that gives you 2% cash back on your purchases costs $120. So even though you’ll spend some money to get access to Costco, you might more than recoup that outlay via the savings you reap all year round.

And if you find that your Costco membership isn’t paying off, you can cancel for a full refund after the fact. So there’s really no risk to giving Costco a try.

Top credit card to use at Costco (and everywhere else!)

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.

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