7 Costco Shopping Tips for Retirees Living on a Fixed Income

Even though most warehouse clubs don't offer senior discounts, these retailers are still prime places for retirees to score serious savings. If you're living on a fixed income, we can help you to get more out of your Costco membership.

From choosing the best brands to finding the top deals, our savvy shopping strategies make it easy to bulk-buy on a fixed income. Whether you're already a member or just exploring your options, here are the top money-saving Costco tips for retirees.

Editor's note: Prices and availability are subject to change and may vary by location.

Know what to buy at Costco

Costco is a shopping wonderland that never ceases to amaze members. The constantly rotating stock of items makes it possible to find brand-new bargains every time you visit the store. And that means there are more ways to save money on the hottest seasonal styles and popular brands.

Product departments and item categories that could interest retirees include health and beauty, electronics, floral, furniture, groceries, household essentials, home and kitchen, appliances, pet supplies, sports/fitness, and outdoor/patio.

The warehouse club also offers pharmacy, auto/tire, travel/entertainment, vision, and hearing services as well as low prices on gas.

Buying in bulk

Does buying in bulk always make sense for retirees? The more you buy, the less you pay. Large households can use a five-pound block of cheese or a 24-count of freshly baked chocolate chip cookies before the items go bad. But empty nesters may not get their money's worth.

Before you throw away cash on a bulk buy, consider how much you could actually save. Break down the price per ounce, pound, or piece and compare it to the cost of a smaller quantity. Avoid refrigerated products or fresh items (like bakery bread and produce) that don't freeze well.

How to save money at Costco on groceries

You've mastered the art of the Costco bulk buy. Now that you know what to snag and what to leave on the shelf, you're ready to shop.

One of the easiest ways to save money on groceries is to choose Kirkland Signature generics over pricier brand-name products. The high-quality, low-priced Costco private-label line items are often a fraction of the cost.

Other ways to keep your grocery budget in check include stocking up on sale items, looking for special manufacturer's discounts, and sticking to your list. Avoid overpriced, unnecessary extras that tempt you with tasty promises. And, while the free in-store samples are delicious, they could lead you down an expensive road.

How retirees can save money on medications

A Medicare Advantage plan, drug manufacturer coupon cards, and websites like GoodRx make it possible to spend little to nothing on some prescriptions. But that doesn't mean you can easily save on everything in your medicine cabinet.

There are a few ways to cut medication costs at Costco. If prescriptions are an issue, transfer expensive items to the warehouse club's pharmacy to compare the prices.

What can you do about over-the-counter meds? While insurance may not help with OTC options like ibuprofen and multivitamins, Costco's Kirkland brand often offers significant savings over drugstore and brand-name products.

Bulk OTC buys are another way to save. Calculate the price per pill (or unit) before you buy. A 1,000-tablet pack of 200 mg Kirkland Signature ibuprofen tablets costs $13.99 at Costco. CVS sells a much smaller 300-count of 200 mg Advil for $28.49. In a price-per-pill comparison, Costco is the clear winner at $0.01 versus $0.09.

Choose Costco generics over brand names

Costco's Kirkland Signature store brand includes more than groceries and OTC medications. You can find these generics in almost every aisle of the store.

Not only does the private-label line offer savings over brand-name purchases, but Costco is also poised to reduce prices on several items this year. According to the retailer's recent third-quarter earnings call, the cost of Kirkland Signature Crispy Wings will drop by $2, Milk Chocolate Almonds will go from $19.99 to $18.99, members could save $3 on Golf Balls, and the price of King Size Sheets will change from $89.99 to $79.99.

Smart shopping with Costco's app

Not tech savvy? Don't worry. Costco's app is easy to use.

Simply download the app to your smartphone and tap the "Savings" tab to find in-store deals, online-only discounts, and new items. Retirees can also use the app to snag bargains on travel, entertainment, select health services, insurance, auto items, and more.

Save money on gas

Don't break the bank at the pump. Now that you're retired, you have time for road trips and daily adventures. But the rising cost of gas could make it challenging to drive just about anywhere. Luckily, Costco undercuts the prices of many commercial fuel chains.

Hint: A separate trip to Costco just to fill your tank doesn't make financial sense. Plan your shopping schedule around your gas gauge.

Is the annual membership fee worth it?

Basic Gold Star members pay $65 annually for a Costco membership, and Executive members pay $130. Before you add this expense to your budget, make sure the fee is worth it.

If you won't buy in bulk, don't plan to use any of the services (like optical, pharmacy, travel, or auto), prefer brand names over generics, or aren't taking advantage of the low-priced gas, the added membership fee could throw your budget off track.

Bottom line

If your retirement savings are stretched thin, the added expense of an annual Costco membership may not seem like a solid financial decision. But with these easy-to-follow tips in hand, you can maximize your spending power and keep your budget in check.

While Costco is a popular one-stop shop for everything from affordable OTC meds to pantry products, it isn't the only retailer that makes it easier for retirees to live comfortably on a fixed income. Compare the warehouse club's prices to what you'll pay at Dollar Tree, T.J. Maxx, HomeGoods, Aldi, and Five Below before you stock up.