Live a little! Here are 5 surprising things American retirees should spend money on sooner rather than later — how many have you delayed?

Spending money in retirement

A 2024 survey from Allianz Life Insurance found that 63% of Americans worry more about running out of money than death.

One way to feel more at ease with retirement spending is to sit down with a financial adviser and devise a strategy and a budget that will fit the life you imagine living in your golden years.

While a retiree's reluctance to spend money may be both financial and psychological, health also plays a role. Research published by the Financial Planning Association (FPA) points to a retirement “smile curve,” where “younger retirees are better able to travel and enjoy retirement, while older retirees incur higher relative medical expenses.”

This suggests that a good chunk of retirees needlessly defer a satisfying spend. The stereotypes of new retirees outlandishly dressed in designer duds or hitting casinos nonstop have some truth to them.

But that doesn’t compare to targeted, responsible purchases that, while they might raise some eyebrows, will also quicken the pulse and raise spirits.

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Five retirement expenses worth a second look

Returning to school

In what Queen guitarist Brian May once called “unfinished business,” he returned to Imperial College to complete his long-delayed astrophysics doctorate in 2007. He turned 60 that year and, seven years later, was a scientific team collaborator for NASA’s Pluto flyby.

According to a report from the Wall Street Journal, an increasing number of U.S. retirees are considering returning to school. Not only does it offer opportunities to foster social connections, but it may inspire a little side business to help generate more income during retirement.

Some colleges and universities offer tuition waivers to seniors, while some community colleges will even let older Americans audit classes for free. Some companies also offer video lectures and online education platforms, free of charge.

If you’re looking for ways to keep the mind sharp, interact with others, and maybe even earn a degree that will make you some post-retirement money, returning to school might be worth looking into — and shouldn’t hit your bank account too hard if you do a little research.

Renovating your home

Granted, this might be too big an expenditure for some to undertake, but upgrading your home to something you’ll enjoy in your golden years is one great way to spend that hard-earned money. And who said you had to remodel the entire house?

Indulge in that luxurious bathroom upgrade you’ve always dreamed about, or design the open-concept kitchen you wished you’d had two decades ago.

According to Angi, the national average for a bathroom remodel is $12,109. Too much? Start small and consider spending money on little things that will improve the overall appearance almost immediately like faucets, toilets, or a sleek new bathtub.

As a bonus, if the renovations are significant (and relatively timeless) you’ll likely also increase the value of your home should you decide to sell down the road.

Buying a rental property

Looking to generate some income while also indulging your business sense from your years in the workforce? Consider becoming a landlord by buying a rental property. Investing in real estate can be a savvy move for many retirees.

Rental properties will generate passive income to supplement your fixed earnings and the value of the property might grow over time. According to data from Clark Asset Management, one in 10 retirees supplement their income with rental properties.

Alternatively, if you travel for significant periods of the year, you can rent out rooms in your existing home via Airbnb or other rental property platform and generate income on an asset you already own.

Not interested in being a landlord? Consider investing in real estate investment trusts (REITs), which offers exposure to real estate without directly owning a property.

Hiring a personal trainer or nutritionist

Countless articles correlate the quality of life in retirement with maintaining robust physical health.

Hiring a personal trainer (who typically charges an average of $50 an hour) can up the fitness ante and help hold you accountable when it comes to reaching any fitness benchmarks or goals you may have set for yourself.

Alternatively, if you’re looking for tips and tricks on eating better, working with a nutritionist (at an average cost of $70 per session) can help set you up with a game-plan and introduce you to a variety of exciting new recipes you actually have the mental bandwidth to make now that you're retired.

Starting a business

Another example of a pursuit that can present a financial return: who do you think operates all those indie bookshops, quaint B&Bs, and antique stores in resort towns?

In many cases, it’s retirees. Buying a property may provide additional benefits vis-a-vis appreciation, on top of the customers who will appreciate you for your hospitality and good taste. Plus, you can’t put a price on the social connections you’ll make.

In fact, nearly two-thirds of Americans are planning a non-traditional retirement. Translation: they plan to continue working — albeit this time for pleasure, according to Fidelity Investments’ 2024 State of Retirement Planning study.