8 Services Wealthy Retirees Spend Money On That Poor and Middle Class People Don’t
Retirees who have more resources have the option to prioritize the things that maximize their well-being — whether it’s social, emotional or otherwise. This means they can pay for things that people in other classes simply don’t have the budget for.
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So, what are the top services that wealthy retirees spend their money on that those with fewer financial resources generally don’t? These are the main things, according to experts.
Concierge Healthcare Services
“One area we have seen an increase in with the wealthier clients is concierge medicine,” said Joseph Favorito, managing partner at Landmark Wealth Management. “Roughly 60% of medical care in the U.S. is now provided by the U.S. government. So, as economic price discovery has declined as the government has played a larger role, the medical community has consolidated and needed to take a more volume-based approach, which lowers quality and availability.”
For those with the means to afford higher quality or private healthcare, concierge services are the answer.
“The wealth[y] are not interested in waiting for an [appointment],” Favorito said. “The solution for many of them is concierge services.”
And for those who want something more, they may hire in-home care services or move into a senior community with on-site health professionals. These options are generally viewed as too expensive for the average retiree, but for those with the means, it can lend to their peace of mind and overall quality of life.
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Travel
Many retirees want to travel, but not everyone can afford to do so. This isn’t such an issue for the wealthy.
“With additional time and freedom in retirement, many people want to explore the world in comfort and style,” said Dustin Wolk, wealth advisor at Crescent Grove Advisors. That’s why wealthy retirees are more likely to pay for bespoke travel packages, concierge services and other luxury touches to ensure they have a truly memorable experience.
High-end Clubs or Memberships
“Retirement means retirees spend time doing what they enjoy most. Joining exclusive clubs and associations — such as social, golf or tennis clubs — provides wealthy retirees with access to luxurious amenities and social opportunities,” said Wolk.
Unfortunately, lower- and middle-class retirees can’t always afford these expensive membership dues, even if they’d have liked to join. This doesn’t mean they can’t still gain a sense of community and keep active during retirement. It just limits their options somewhat in comparison.
Professional Financial Advice and Services
“Professional financial advice is a service that wealthier retirees may be able to afford that — unfortunately — those with less means may not be able to afford,” said Chris Urban, CFP, RICP, founder at Discovery Wealth Planning.
And it’s not just financial advice. Since wealthy people tend to have complex financial portfolios, they may also hire wealth advisors, certified financial planners, tax planning or estate planning professionals and other individuals to help them manage their assets.
While not everyone has the means to pay for such services, there are more affordable options available today than ever before.
“Fortunately, there are more platforms and services being created today that unlock coaching and guidance for everyone, regardless of means,” Urban said. “It is certainly a move in a good direction; however, for many, it is just not affordable and realistic at this point.”
Professional Home Maintenance Services
“For many, having a home requires ongoing maintenance and upkeep, which is why wealthy retirees invest in home maintenance services,” said Wolk. “They hire professionals to take care of tasks such as cleaning, lawn care and fixes and updates. [This] ensures their residences are maintained without allocating their personal time and effort.”
Outsourcing these tasks, Wolk continued, allows these individuals to experience all of the joys of home ownership without the hassle.
Asset Protection Services
“Wealthy retirees spend differently, prioritizing a high quality of life and preserving their legacy. They invest in healthcare, wealth management and sophisticated asset protection services to shield their wealth from legal threats and ensure their assets are managed as they wish,” said Blake Harris, attorney at Blake Harris Law.
“For them, these investments are about more than just money. They see asset protection as crucial for their family’s financial security and legacy,” Harris continued. “This strategic approach to wealth management isn’t as common among those with fewer resources, because they face different challenges and have fewer options.”
Landscaping and All-Inclusive Living Arrangements
Home maintenance services is one thing, but some wealthy retirees also spend their money on all-inclusive living arrangements.
“They may move to an independent living apartment or single home where their yard is taken care of and they have weekly cleaning services and access to a meal plan,” said Melanie Musson, a finance expert with Clearsurance. “Wealthy retirees [also] spend money on landscaping services. Instead of working in the heat and sun taking care of their lawn and gardens, they have a groundskeeper handle it for them.”
Services of Quality and Time
“The way individuals spend money often reflects, intentionally or otherwise, the things they value most in life. In my experience, when it comes to basic necessities, those with more income and assets tend to pursue items of quality rather than obsessing over value,” said Rob Moore, financial planner with Everman Prosperity.
“When it comes to discretionary spending, wealthy individuals are more likely to spend money on things that save them precious time,” he said. “That is, they value their time more than anything else.”
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