Big Purchases in Retirement: How to Decide If It’s Worth It

Retirement has a way of shifting the lens through which you see money. Decisions that once felt straightforward suddenly come with more weight. The question is no longer simply “Can I afford this?” but “Will this improve my life enough to justify the spend?” From cars and caravans to renovations, e-bikes, hearing aids, or long-dreamed-about overseas trip, bigger purchases can feel both exciting and unsettling.

The good news is careful planning—paired with a clear understanding of what genuinely matters to you—can make these decisions far less stressful. Retirement is meant to be lived, not tip-toed through, so here is a practical framework for deciding when a large expense is not only affordable, but worthwhile.

Start with the life you want, not the item you’re considering

A surprisingly helpful starting point is to step back from the purchase itself. Instead of asking whether you should buy a campervan or upgrade your appliances, begin with a broader question: “How do I want my next few years to look?”

If you’re craving more freedom, more social connection, or more comfort at home, certain purchases may naturally rise to the top of the list. Conversely, if the main driver is boredom, pressure from others, or a worry you might “miss out”, it is worth pausing. Large purchases are easier to justify when they support the lifestyle you genuinely value, rather than the one you think you should want.

Check the real numbers—not just the headline price

Every big purchase has a true cost, and it is almost always more than the sticker. Cars need maintenance, insurance, and registration. Trips have spending money baked into every day. Home upgrades often trigger follow-on improvements once you start noticing what else could use attention.

This does not make big purchases a bad idea. It simply means the maths should be honest. A simple way to test affordability is to break the overall price into annual, quarterly, or monthly impact. Many retirees find this approach reassuring because it shifts the question from “Is this $8,000 purchase too much?” to “Does an extra $150 a month fit comfortably within my plan?” In most cases, the answer is much clearer framed that way.

If you work with a financial adviser, this is exactly the type of scenario modelling they can walk you through. One conversation can replace weeks of second-guessing.

Consider the return on enjoyment

You probably heard the phrase “return on investment” many times during your working life. In retirement, a more relevant concept is “return on enjoyment”. A big purchase that delivers joy, convenience, comfort, or independence for years can be far more valuable than something cheaper which barely gets used.

The trick is to look ahead realistically. Will you use the new mobility scooter regularly, or will it gather dust? Will a caravan open up new travel habits, or will you only take it out once a year? How much will a new kitchen enhance your daily living, not just the resale value? When the benefits genuinely improve your quality of life, the value becomes much easier to justify.

It can also help to ask yourself whether the purchase will reduce stress. For many people, upgrading an unreliable car or replacing an unpredictable appliance feels like lifting a weight off their shoulders. Peace of mind may not be glamorous, but it is definitely worth something.

Test the idea with a trial run

Before spending a five-figure sum, try before you buy. Renting a campervan for a long weekend, borrowing an e-bike from a friend, or staying in a holiday park cabin before committing to a caravan can quickly provide clarity.

Trial runs don’t just confirm whether the purchase is enjoyable. They clarify which features matter, what feels like a hassle, and whether your enthusiasm matches the reality. A small upfront cost can prevent a large and regretful one.

Think about legacy and longevity

Some big purchases serve you well for many years; others are more fleeting. A heat pump will improve comfort and efficiency long term. A larger TV may not make the same difference a year or two later. When in doubt, choose upgrades that contribute to safety, mobility, or wellbeing—these usually pull their weight over the long term.

There is also the legacy factor. Items such as jewellery, tools, instruments, or certain hobby gear can be passed down and appreciated by others. While legacy should never be a primary reason to buy, it can add a pleasant secondary benefit.

Make space for joy, not guilt

A surprisingly common emotion around big purchases in retirement is guilt. Many people feel uneasy about spending on themselves after decades of budgeting for children, home loans, or work-related commitments.

It may help to reframe the issue. Your savings exist to be used—not hoarded indefinitely. If a purchase meaningfully improves your life, supports your independence, or brings you genuine joy, then it is fulfilling the very purpose your money was saved for.

No one reaches eighty wishing they had bought fewer experiences or less comfort.

Use the “five-year test”

One final tool is the five-year test. Ask yourself: “In five years’ time, will I be glad I bought this?” If the answer is an easy yes, the decision is probably sound. If the answer relies on “well, maybe if…” it may be worth stepping back.

Most retirees find the purchases they value most fall into two categories: things that make everyday life better, and things that create memorable experiences. Purchases made out of stress, haste, or fear rarely hold their value emotionally.

The bottom line

Big purchases in retirement are not just financial decisions. They are lifestyle decisions, wellbeing decisions, and sometimes confidence decisions. The key is to align what you buy with how you want to live, make sure the numbers work comfortably, and allow yourself to enjoy the benefits without second-guessing.