Why Splurging in Retirement Is a Good Idea

There is an appropriate way to splurge without compromising financial security in retirement. Dmytro Zinkevych/Shutterstock

When in retirement, there is a big difference between splurging on nice things occasionally and outright wasting your money on things you won’t use. However, many retirees confuse the two and start saving like Scrooge while refusing to spend any money on themselves unless it’s a necessity. In fact, 25 percent of people decrease their spending in retirement, even when they are financially well-off.

While responsible money management is essential, especially on a fixed income, there is an appropriate way to splurge without compromising financial security in retirement. However, it involves more than just crunching numbers. It requires a mindset shift out of fear and scarcity.

When to Splurge on Items in Retirement

Retirement doesn’t need to be a time of ultra-conservative spending. Here are some of the best reasons to splurge.

1) The Best Technology Costs More

Depending on what you’ve chosen to do with your time in retirement, you might find yourself looking at various forms of technology, wondering if you need all these gadgets or if you can get by with cheap options (or skip it altogether).