These 2 Perks Alone Could Make a Costco Membership Worth It for Seniors

These 2 Perks Alone Could Make a Costco Membership Worth It for Seniors

These 2 Perks Alone Could Make a Costco Membership Worth It for Seniors

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Retirees often have to be careful with their money. After all, they no longer receive a salary and often have to return their savings last.

If you are inactive and considering spending some of your limited money on a Costco membership, it is worth considering whether the membership fees are justified. With membership pricing starting at $60 for a Gold Star membership and going up to $120 for an Executive membership, this may not seem like an easy choice.

In reality, however, Costco offers two specific benefits that could make membership an especially smart personal finance choice for seniors.

1. Discounted Prescription Drugs

The ability to save on prescription medications is one huge motivation for retirees to join Costco.

According to the Georgetown University Health Policy Institute, among Americans ages 65 to 79, 87% use prescription medications. For people over 80, this figure rises to 91%. The average number of prescriptions filled each year is 20 for those aged 65 to 79 and 22 for those aged 80 and over.

These medications come at a cost, even with Medicare coverage. People aged 65 to 79 spend an average of $456 per year out of pocket to cover prescription costs, while those aged 80 and over must budget an average of $510 for medications.

Joining Costco can help seniors reduce these costs. The Costco Member Prescription Program saves up to 80% on popular medications. That means a typical senior spending $456 a year could reduce that amount to as much as $364.80. The savings on prescriptions alone would justify the annual fee.

Let’s take a look at A popular drug. Celebrex treats rheumatoid arthritis and osteoarthritis, two common conditions among older adults. The generic version, celecoxib, was more than $10 cheaper at Costco than at Target or CVS in several markets in different states, including Florida, Pennsylvania and California. The discount on this one drug alone covers Costco’s annual fee and more, assuming you get a 30-day monthly supply.

2. Discounted Travel

Travel is a passion for many older adults who have the money, time and health to see the world. More than half (52%) of people aged 50 and over describe travel or vacation as their top priority when it comes to spending their discretionary income. Costco can make these trips less expensive.

The warehouse club offers tons of vacation packages at great prices. When The Ascent compared Costco costs versus alternatives, several trips saved $500 or more. Additionally, Costco also lets you earn 2% cash back when you book a vacation through Costco Travel if you upgrade to the Executive Membership, which can help bring the cost down even further.

These two benefits alone often make it worth joining Costco, especially if you’re like most seniors and tend to spend a lot on medications and vacations.

The good news is that if you’re not happy with your membership, Costco will also offer you a refund at any time. So you can sign up to see if your prescriptions or destinations are cheaper, and if it turns out you’re not saving enough to justify your membership fee, you haven’t lost anything after all.

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We strongly believe in the Golden Rule, so editorial opinions are our own and have not been previously reviewed, approved or endorsed by included advertisers. Ascent does not cover all market offers. Editorial content on The Ascent is separate from editorial content on The Motley Fool and is created by a different team of analysts.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool posts and recommends Costco Wholesale and Target. The Mad Motley has a disclosure policy.

These 2 benefits alone could make a Costco membership worth it for seniors was originally published by The Motley Fool

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