4 Signs You’re Being Too Frugal When Saving for Retirement

If you’re delaying vital purchases in the name of saving for retirement, experts say this can cost you big later — particularly if you’re being too frugal with healthcare.

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“The most telling sign I see of harmful over-saving is when clients consistently postpone essential medical and dental care,” said Kevin Shahnazari, founder and CEO of FinlyWealth.

But healthcare isn’t the only thing you should avoid under-spending on. Here are experts’ top signs you’re being too frugal when saving for retirement.

“In my opinion, there’s a fine line between being mindful with your money and being overly frugal to the point of self-deprivation,” said Shirley Mueller, finance expert and founder of VA Loans Texas.

She said a key sign someone is too frugal with their retirement savings is when they avoid spending on necessities, like healthcare or home maintenance, to stash away a few extra dollars.

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“I’ve seen retirees who skip routine doctor visits or delay critical repairs on their homes, thinking they’re being smart, only to face larger costs down the road,” she explained. “Retirement savings are meant to provide security and comfort, not force you into making sacrifices that harm your well-being.”

Shahnazari agreed. “Just last month, I worked with a couple who delayed replacing their failing water heater, causing expensive water damage that cost far more than the initial repair would have.”

He said this pattern of avoiding necessary maintenance — whether for your health or home — creates bigger expenses down the road.

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Another red flag, according to Mueller, is consistently opting for the cheapest option without considering the long-term value.

For instance, she said buying low-quality furniture or appliances may save money upfront, but these items often break down faster, leading to higher replacement costs.

“I’ve advised clients who were hesitant to spend on durable goods or services, only for them to realize later that their extreme frugality cost them more in the long run,” she said. “Investing in quality doesn’t mean being reckless, it’s about balancing initial costs with durability and utility over time.”

“Quality matters more than immediate savings,” Shahnazari agreed.

“I had a client who bought the cheapest possible work shoes every few months, spending more annually than a single pair of well-made shoes would cost,” he explained. “When we analyzed her spending, she realized this ‘save at all costs’ approach was actually increasing her expenses while decreasing her quality of life.”

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