How to Plan the Perfect Retirement Bucket List

After a long career, retirement is a great reward. It’s a time to relax, make those big dreams you had for your life a reality and spend time with loved ones. Everyone has different priorities for their golden years, and your bucket list won’t look the same as someone else’s. But what’s true for everyone is that you need a plan to get the most out of retirement.

Understanding your financial situation in retirement is key to ensuring you can balance your bucket list with your money goals. Whether you’re drawing from a retirement account, leaning on Social Security or using personal loans to support your goals, here’s how to make the most of your later years.

1. Understand your budget

The key to any savings plan is having a good budget. Budgeting for retirement can be challenging since you won’t have the income you’re used to from a paycheck. Before you start making any big plans, you need to make sure they’re financially feasible. Working with a financial advisor can help you a lot with this step.

Start by reviewing your income sources in retirement, which may include

• Pensions
• Social security benefits
• Savings
• Withdrawals from retirement accounts

Then, create a detailed breakdown of your expenses, from regular costs like housing, health insurance, and groceries to discretionary expenses like dining out or vacations. If you’ve managed a budget in the past, it can be a helpful resource to plan your retirement spending.

With a clearer idea of your income and essential expenses, you can start to budget a discretionary fund to support your bucket list. But don’t forget to budget for an emergency fund to cover unexpected expenses that could otherwise derail your bucket list planning.

2. Determine your priorities

A great bucket list should balance practical, everyday goals like spending time with loved ones with more ambitious goals like buying a boat. Your bucket list could include passions and interests you already have, new hobbies you want to pick up and things you always wished you had more time for, like traveling.

Before diving headlong into your bucket list, it’s important to set your financial priorities. For some, checking everything off the bucket list might be priority number one! But that doesn’t mean there aren’t other important things to consider.

Some things to keep in mind when planning your retirement bucket list include

• Estate planning: If you want to leave behind an inheritance for your children or grandchildren, it’s a good idea to work on an estate plan. An estate lawyer can guide you through creating a will or trust to set aside money or assets to help secure your family’s future.
• End-of-life costs: Hospice care can cost as much as USD 1,600 per day at home. The number may be even higher in a hospital. The average funeral cost ranges between USD 7,000 and USD 12,000. If you want to help your family with these costs, you should save for them ahead of time.
• Cost of living: Many people choose to relocate in retirement. Even if you plan to downsize, you may choose to move to a more expensive part of the country. This could have an impact on your budget, so it’s important to consider updating your living expenses when planning your bucket list.

Once you’ve thought through these issues, you can start to make your bucket list budget.

3. Consider your health

You may have big goals for your retirement, but it’s important to be realistic. Financial planning is important, but you should also make an honest assessment of your health and abilities. Climbing Mount Kilimanjaro is a noble goal, but be honest with yourself about any potential physical limitations.

On the other hand, becoming more active can be a bucket list item of its own. Physical activities like golfing, skiing, hiking, or cycling can be fun hobbies as well as a way to boost your energy and reduce your risk of chronic disease. Joining a gym or devoting more time to getting outside can make bigger goals (like climbing Mount Kilimanjaro) feel more realistic in time.

4.  Don't be afraid to make changes

Don’t take your bucket list too seriously. While it’s exciting and fun to think about all of the things you want to do in retirement, forcing yourself to check everything off can quickly turn the fun into a chore. If your needs or interests change, you should be willing to adjust your bucket list, too.

The perfect bucket list is all about balance

Everyone has a different idea of the perfect retirement bucket list. Whether you want to learn something new, spend time with the grandkids or see the world, the perfect bucket list is one that you’ve planned for. By identifying your financial priorities, passions and health considerations, you can create a bucket list that helps you make the most of your retirement while balancing your long-term savings goals.