Costco and Sam’s Club are both warehouse clubs where buying in bulk is the name of the game. While many Americans prefer one store over the other, if you live primarily on Social Security, a membership to either may not fit in your fixed-income budget.
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For those whose main source of income is Social Security, living frugally and cutting out everything but the absolute essentials is vital. Even if they want to shop at stores like Costco and Sam’s Club, it’s more of a luxury than a necessity. In some cases, it’s just not feasible at all.
GOBankingRates spoke with one such individual, Kathryn M., about her experience shopping at these stores, her preferences and the realities of living primarily on Social Security. Here’s what she said.
Social Security Isn’t Enough
Even if there is a little wiggle room in the budget, and even if the bulk prices are technically lower than the per-unit prices at other retailers, most low-income retirees living on Social Security still can’t afford Costco or Sam’s Club. In other words, just because Costco has cheap hot dogs, doesn’t mean it’s worth the monthly expense.
“I am very representative of the many, many older men and women who are struggling to live on the small allotment of Social Security,” said Kathryn. “Social Security has had no relevant increases in payment for recipients in more than 50 years. Meanwhile, the cost of living has escalated thousands of times beyond what Social Security can provide.”
The reality of living on Social Security can be harsh for many retirees. The average Social Security check was about $2,007 in July 2025, which, at first glance, might seem like enough. After all, if someone retires with no mortgage, auto loans or other debts, their full Social Security paycheck can go toward everyday expenses.
The problem is, the cost of living is always increasing, and Social Security benefits aren’t keeping up. Even those who manage to keep expenses fairly stable from month to month, or year to year, still have to deal with rising costs. As for those little extras like membership fees to warehouse clubs? They’re just not in the budget.
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Those Who Worked Corporate Jobs May Have Greater Luxuries
Social Security benefits vary widely based on your income. Your benefit amount is calculated based on your 35 highest-earning years, adjusted for inflation — up to a certain taxable amount.
The calculations can vary based on other factors, too, but the long and short of it is this: The higher your income and the longer you wait to collect, the larger your monthly paycheck. For those who earned a higher salary during their working years, this leaves a lot more room for Costco or Sam’s Club memberships and bulk buys. For others, this isn’t the case.
“If you have been a CEO or [in] upper management all your life, then you are probably set and don’t require Social Security in order to live,” said Kathryn.
“But if you were one of the people that worked for the CEOs’ rep management by the hour or in a salaried situation; if you were a server, the taxi driver, minimum wage hustler most of your life and worked for tips or for a very low wage, you will be in my situation.”
Underemployment Is a Very Real Issue for Social Security Earners
It’s not fair to assume that everyone earns even the average amount in Social Security. For many, including Kathryn, underemployment is a very real issue that leads to a much smaller paycheck.
“I am a 64-year-old woman. I spent much of my time in restaurants working to earn money to fund my future career,” said Mullen. “Once I had saved up a small amount of money, I [launched] my own little company.”
Launching a company doesn’t always mean success or higher retirement earnings, however. And it definitely doesn’t equate to extra spending money for warehouse club memberships.
“It’s a crap shoot when you start a company as to how much Social Security you’re going to get,” she said. “Because of my desire to not work for others and to have a flexible schedule so I can pursue my own dreams, at 64, I now earn $600 a month in Social Security. I am also on $300 a month in food stamps.”
Unfortunately, many other older Americans were also underemployed during their working years and now earn a very small Social Security paycheck to get them through their retirement years.
“Worst case scenario, you were underemployed most of your working life, and now you get $600 a month to live on,” continued Kathryn. “I am the truth of what the situation is for many, many older Americans on Social Security.”
There Are Earning Limits for Social Security Recipients, Too
As if the potentially small monthly paycheck wasn’t already enough, there are also income limits for those who receive Social Security benefits. Not even Kirkland Signature prices can’t compete.
“There is no way for people that did not enjoy an entire career of corporate life to earn more than $3,000 a month on Social Security,” said Mullen. “And then, as a recipient of SSI, you are not allowed to earn more than $1,200 a month additionally, so best case scenario, you might make $4,200 a month after working in a corporate job for many, many years.”
With $4,200 a month comes more of the luxury of shopping at places like Costco or Sam’s Club. But for those who don’t find themselves in such a fortunate situation, it’s far less of a reality.
There is an exception to this $1,200 limit that’s worth pointing out. Those who reach full retirement age before collecting benefits can earn as much as they’d like without affecting their benefit amount.
Final Take To GO: What’s It Like for Older Americans on Social Security?
The bottom line is that for many retirees who rely primarily on Social Security, membership-only types of stores just aren’t in the cards. Sometimes, just being able to put food on the table and have a roof over their heads is all they can truly afford.
“I am blessed that I have a roof over my head because of a dear friend who saw that [at] 64, I was likely to be among the thousands of homeless wandering the streets,” noted Kathryn. “There is no way people in my situation can stop at Costco. There is no way people in my situation can grocery shop twice a month.”
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: I Live Off of Social Security: Why I Don’t Shop at Costco or Sam’s Club
