How Much Money Should You Give For a Retirement Gift?

Someone is retiring, and you would like to give a gift to celebrate their retirement. That is why you might wonder, how much money should you spend for a retirement gift?

On average, people spend between $10 – $100 on a retirement gift. The exact amount depends on the type of relationship and personal budget. The closer the relationship the more people spend on a retirement gift. For a group retirement gift, people spend between $5 – $25. Companies spend between $50 – $1000 on a retirement gift depending on the job position, the number of working years, and company protocol.

This is just the tip of the iceberg. In this article, I share more spending details about different situations and amazing retirement gift ideas. Let’s dig in!

How Much Money Should You Spend on a Retirement Gift For Your Employee?

If one of your staff members is retiring, it is expected to give a retirement gift. It shows that you care and will show other employees the value you place for the dedication to your company. This can create extra motivation among your staff. So you don’t want to miss out on this opportunity.

The amount of money you should spend depends on a lot of factors like how many years the retiree worked in the company, in which job position, and what your budget is for employee gifts.

For future reference, it’s best to create a worksheet for yourself with the amount of money that you spend on gifts per year the staff member has worked for you. You can make this public to your staff members so everyone knows what can be expected, and you don’t create inequality among employees.

As a boss, you want to spend more than an individual would spend on a retirement gift because you have been the most beneficial of all the work the retiree has done. As the average as an individual is between $10-$100, you want to spend between $100 – $1000 on a retirement gift as a boss. And the more personalized the gift, the better it is. You want to show that you know your staff members on a more personal level.

I listed some unique retirement gifts for your employee below:

Retirement Gift For Employee: Bouquet of Flowers

So, it is important to give a personalized gift when one of your employees is retiring. However, giving a bouquet of flowers as a thank you is a must to give on retirement day. It’s a tradition to give flowers to the retiree. A bouquet of flowers is just one part of the retirement gift. The Benchmark Bouquet Store on Amazon has a wide variety of flower suppliers, so you can easily order online.

Retirement Gift For Employee: Personalized Engraved Thank You Award

Prestige Diamond (L)

Make sure that the retirement gift for your employee has a personalized message. There are a lot of ways you can arrange a personalized gift. However, if you want something that is kind of the same for every employee, you might consider giving a personalized thank-you award as a retirement gift for your employee.

You can easily add a personal message to a thank-you award to make sure this gift has the personal touch you’re looking for.

Retirement Gift For Employee: Dom Perignon Champagne Gift Basket

Dom Perignon Greetings - Wine Gift Basket

Retirement is a life celebration that calls for champagne. And you can give your hardworking employee a beautiful Dom Perignon Champagne Gift Basket to wish him or her all the best in retirement. With the world’s best vintage Champagne.

How Much Money Should You Spend on a Retirement Gift as a Co-worker?

As a co-worker, it is not expected for you to give a retirement gift. If you are a close co-worker, it’s more expected from you than if you’re not that close. Unless you are invited to a retirement party, then it’s best to bring a retirement gift.

On average people spend between $10 – $100 on a retirement gift. When you have a good relationship with the retiree, you can give a gift personally. But you can also give a retirement gift as a team. This way you can collect more money to buy a bigger and more expensive retirement gift.

The contribution to the pot can between $5 – $30 or even more, depending on how much everyone can afford. It’s best not to force guidelines but give more suggested guidelines to group gifting. Don’t insist that everyone has to contribute because they maybe can’t afford or don’t want to be involved.

Retirement Gift Idea For Your Coworker: The BroBasket

Get men a gift they really want - Their Favorite Booze!

A great retirement gift when your coworker is a man is The BroBasket. You can create an amazing (custom) gift basket for your boss or coworker with his favorite alcohol and snacks. From Whiskey, Vodka, Tequila, Scotch, Gin, Rum to (craft) Beer, and engraved gifts. There are also alcohol-free gift baskets available on BroBasket.

Retirement Gift Idea For Your Coworker: Wine Gift Box

A Wine Gift Box from The California Wine Club is a great retirement gift when your coworker is a woman or wine lover. You can gift her a Wine Box or a monthly subscription with delicious and handcrafted award-winning wines from (small) family wineries.

How Much Money to Spend on a Retirement Gift For Your Boss?

Most employees do group gifting when it comes to giving a retirement gift to their boss. The contribution to the pot is an average between $10 – $30. And sometimes even more. If you have a good or special relationship with your boss you can exclude yourself from the group gift and give a personal gift yourself. On average this can be between $10 – $100 depending on how much you can afford and how good your relationship is with your boss.

Retirement Gift Idea For Your Boss: Annual Membership to MasterClass

When it comes to retirement gifts for your boss, our number one pick is an Annual Membership to MasterClass. The masterClass platform is an online streaming platform where you can learn from the best in the world. Some of the famous teachers are Gordon Ramsey, Samuel L. Jackson, Aaron Franklin, Serena Williams, and many others.

On MasterClass you can follow MasterClasses in different categories, from writing, acting, sports, cooking, gardening, and many more. It’s a great gift, where your boss can explore different activities in retirement, and learn what he likes to do most.

When an Annual Membership for MasterClass isn’t something you’re looking for when it comes to a retirement gift for your boss, I recommend reading my article, 44 Fantastic Retirement Gifts For Your Boss, which helps you to find more inspiration.

How Much Money Should You Spend On a Retirement Gift For a Friend?

When one of your friends is retiring, you have a personal relationship with the retiree. However, that doesn’t mean you have to spent more money than any other person. It all depends on how much you want to spend and how much you can afford on a retirement gift.

It’s often more the thought that counts than the amount of money you spend. If you’re attending a retirement party with maybe a dinner, it’s best to spend a bit more than if there’s no retirement party planned. Because you know the retiree more personal, you probably also know what his/ her retirement plans are. That means you can look for gifts that match their passions, hobbies, and plans for retirement. Any gift that is thoughtful is a great retirement gift.

You can also decide to buy a funny retirement gift for your friend. Why not have some fun, while giving a retirement gift, right?

Retirement Gift Idea For Your Friend: Funny Retirement Coffee Mug

On Amazon, you can find many different retirement coffee mugs. I like this one the most because it has the funny text ‘I’m Retired, Do It Yourself’

I like a bit of humor when looking for a retirement gift for a friend, so this coffee mug is the perfect gift to give both to a female or male friend that’s retiring!

How Much Money Should You Spend On a Retirement Gift For a Family Member?

This is probably on of the hardest questions to answer, because it all depends what your relationship is with the family member. And also how much you want to spend on a retirement gift, and how much you can afford.

When one of your parents are retiring, you probably will spend more on a retirement gift then when an uncle or aunt is retiring. You might also give a group gift with other family members. Or maybe you want to give a more personalized individual gift yourself. So many factors to think of!

When my dad was retiring, we gave a gift with the whole family, but I also bought him a personal gift myself. It was just a special occassion that I wanted to do both. The amount of money you spend on a retirement gift for a family member is not the most important factor. It’s all about giving a personalized and thoughtful gift.

I listed a few retirement gift ideas for a family member that might be helpful

Retirement Gift Idea For Your Family Member: Annual Membership to MasterClass

I already mentioned the MasterClass platform as a retirement gift for your boss. However, I feel an Annual Membership for MasterClass is also a great retirement gift for a family member.

MasterClass is an online education platform with the world’s most successful and famous teachers: Gordon Ramsey, Christina Aguilera, Usher, Hans Zimmer, Stephen Curry, Carlos Santana, Jimmy Chin, Serena Williams, Dan Brown, etc. 

Masterclass offers classes (for any skill level) taught by the best in the world: from cooking, acting, writing, poker, music, sports to science, and so much more.

You can give your friend or family member the time of their life in retirement with a cool Masterclass from their idol, inspiration, or favorite hobby with an Annual Membership to MasterClass.

Retirement Gift Idea For Your Family Member: Wine Bottle Balancer

These Personalized Wine Bottle Balancers are always an eye-catcher and a great way to display your favorite wine. They are also made to tilt just enough to assure that the cork does not dry out. Since wine bottles vary in size, shape, and weight, your wine bottle will sit in each one a little differently. Slide the bottle further in or out until you find the spot it balances best, and you are set.

You can choose from different designs, and easily add a personal message to each Wine Bottle Balancer. It’s a unique retirement gift when your family member is a wine-lover.

How Much Can You Afford?

How much money you should spend on a retirement gift also depends on how much you can afford. If you don’t make a lot of money, don’t feel obligated to spend a lot of money on a retirement gift. Don’t underestimate the value of giving something thoughtful that shows your recognition and support. The more personal the gift, the better.

Suppose you make more money than an average person. That doesn’t always mean that you have to spend more. Maybe you feel the unwritten pressure on other occasions, but the key to the best gift is to give something thoughtful and personal with retirement gifts. So that doesn’t always require a lot of money. But you don’t want to be cheap as well. It’s better not to give something than to give something cheap.

And giving extravagant gifts to outshine others is not a good idea as well. It’s actually doesn’t make you look good. You will send a message of showing off, and you can even make the retiree feel uncomfortable. Make sure the message behind the retirement gift is personal, respectful, and pure.

So always try to find something personal when it comes to a retirement gift. Set a budget for yourself how much you want and can afford to spend on a retirement gift. Each occasion can be different.

Retirement Gifts Etiquette

With retirement gifts, it’s more the thought that counts. There are more (un)written rules about how much money you should spend on a gift for other occasions in life. With weddings, birthdays, and graduations, giving cash is the most appreciated. And it’s often also expected from you.

With retirement, it’s not expected of you to give a gift, unless you know the person well or or you want to celebrate this achievement with a gift.

It’s best to give a retirement gift instead of giving cash. If you’re invited to a retirement party you should bring a gift unless directed not to on the invitation. Then a retirement card with best wishes is sufficient.

The gift you give is something that matches one of the retiree’s passions, hobbies, or retirement plans. It can be a gift they need or can enjoy in retirement or a thoughtful gift to keep as a memory. For example, travel gear for a retiree with travel plans, hobby gear for someone with a particular hobby, a Craft Beer Gift Box for a beer lover, a Wine Gift Box for a wine lover, a Coffee Gift Box for a coffee lover, etc. are all great retirement gift ideas.

Therefore you have to know a little bit more about the retiree to know what gift is much appreciated.

If you don’t know the person, you can ask around about what their plans are and what they like. This way, you can find the best retirement gift that matches their plans.

Recommended Articles

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Related Questions

How Do You Celebrate Someone’s Retirement? One of the best ways to celebrate someone’s retirement is to plan a retirement party. Other great ways to celebrate someone’s retirement is to give a speech on the last day, hand out a special award, create a goodbye video with messages from co-workers/ friends and family. Or give out a memory like a photobook with collected photos over the years or a big banner with written messages. Do you want more inspiration?

Read my other article: How Do You Celebrate Someone’s Retirement?

Kirsten Veldman

Since 2017, my husband and I have been location-independent retirees. With hundreds of articles written, I'm passionate about helping other retirees!

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