Keep Those Remodeling Costs in Check

Retirement should be a time to enjoy the wealth you’ve worked hard to build. That may mean traveling more, helping family members, or finally taking on the home-improvement project you’ve been discussing for years.

But enjoying your wealth and managing it responsibly should go hand in hand. Even during periods when the financial markets are performing well, it’s important to make major spending decisions in the context of your overall financial plan.

The financial markets continue to show impressive resilience in 2026. Q2, for example, has had the strongest quarter since 2020. Still, it’s worth remembering that markets always move in cycles.

This reminder is particularly relevant for retirees, whose primary source of income is in the form of savings and investments. While it’s fine to spend on things like home-improvement projects — you want to enjoy your retirement, after all — it’s important not to abandon the principles that helped you accumulate your wealth in the first place.

Sharpen your pencil

You should always start by estimating the cost of your project. Say you want to remodel your kitchen. According to a 2025 article in The Wall Street Journal, a typical renovation project could run anywhere from around $28,000 to $164,000. That’s a broad range. In addition, the Journal recommends budgeting an additional 10% to 20% to cover emergency costs and unexpected charges.

That raises another important point. In addition to estimating the cost of a major remodeling job, you should also estimate the amount of time it’s liable to take. It’s a quality-of-life issue. Having your daily routine disrupted for months with an endless parade of contractors and tradespeople coming and going can be stressful. So even if the cost isn’t an issue, the timeline might be.

For instance, if you plan to install custom cabinets or other items that can take weeks to deliver it’s important not to start ripping things apart until those items arrive. Also, get the timeline in writing from your contractor, including the start date, specific milestones, and date of completion. Building financial incentives for early completion (or penalties for delays) may also help.

In addition, we strongly advise you not to take on more than one major renovation at a time.

Having a pause between projects allows your savings to build back up. You don’t want to become overextended financially due to overlapping projects, particularly if the markets take a downturn. Plus, if you take on too much at once, you might feel like you’ve traded in your retirement for a new career as a project manager.

What’s it worth to you?

The value of home renovation varies from client to client. For example, according to the 2025 Zonda Cost vs. Value Report, exterior renovations tend to deliver a higher return on investment in terms of your home’s resale value. “While large interior remodels may be personally rewarding,” the report notes, “their appeal is often too subjective to deliver the same return when it’s time to sell.”

But if you really want a new kitchen, you can afford it, and boosting your home’s resale value isn’t your primary goal — go for it! Within reason, of course. You still need to determine fair value for the project and not spend blindly.

At The GenWealth Group, we’re here to guide you along every step of your financial journey.

As always, our goal is to help you enjoy the highest possible quality of life while still building generational wealth for those who follow.

Think Before You Start

Estimate the time it will take to do. This is a quality-of-life decision
Add around 10 to 20 percent to cover unexpected charges
Take on one renovation project at a time. This will help your savings build back up
Consider your return on investment. Exterior renovations often tend to deliver higher returns than interior projects