Retirement Bucket List: 9 Things to do Before Retirement
The term ‘bucket list’ is generally associated with things someone wants to do before they die; however, it is just as essential to accomplish certain things before retirement as well. Though everyone has different ideas of what retirement will look like, here are nine things that you should put on your retirement bucket list and accomplish before you retire.
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Get out of debt before retirement.
Retirement means that you are more than likely living on a fixed income. This might come to you in the form of your pension, retirement funds, social security, or a mix of the three. Should you have a fixed income, you do not want to spend any of your money on debt or other money wasters that take away from the money you are supposed to live on.
To avoid having debt take away from your fixed income, you should diligently pursue getting out of debt before you retire. You can eliminate monthly payments, including credit card payments, auto or student loans, and your mortgage. While doubling down to pay off debt can be hard, it is sure to help you become more financially secure in your golden years.
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Review and Update Your Estate Plan Near Retirement.
Having an estate plan is crucial no matter how close you are to retirement, but like you, it is important to reevaluate your end-of-life planning near retirement. Your estate plan should have a will, power of attorney, and all medical directives laid out.
It’s also important to ensure that you will provide financially for your loved ones after you die and a legally binding document. Take the time to work with an estate planning team to ensure that your will and other directives meet your state’s legal requirements and guidelines. It would help if you also took the time to make any updates necessary in regard to your beneficiaries.
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Take the time to learn more about Social Security.
There is a lot of misinformation about Social Security, so it is important to take the time to brush up on your Social Security knowledge before you are eligible to receive the benefits. Additionally, we want to suggest that you take the time to understand what Social Security benefits you are eligible.
For example, individuals are eligible to start receiving Social Security at the age of 62; however, you might not realize that there are benefits to delaying the age you begin collecting payments. Take the time to learn about Social Security and when the best time to start collecting payments.
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Crunch all numbers associated with retirement.
Before you retire, it is important to understand how much money you will need in retirement and how your accounts will provide enough income for you to live off. Common retirement income sources are Social Security, a pension, your 401(k) or other retirement accounts, and passive income sources. Some individuals continue to work part-time in retirement to expand their income solutions.
Consulting with a financial planner to help you discover how much more you will need to save for retirement based on how much you have currently saved and your anticipated life-long spend so that you can ensure you have finances to cover them.
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Review your life insurance policies as you get closer to retirement.
As you near retirement, it is a good plan to double-check that your life insurance policies will cover you and your family after you leave the workforce. Suppose you die prematurely; it is important to ensure that your family is cared for, especially if they are dependent on your income.
If you have life insurance through your employer, there is a good chance that it will no longer be in effect after you retire. You may be able to continue your coverage through your pension plan, but it is crucial to fully understand your coverage. If your life insurance coverage is outside of your employer, you should revisit the plan to ensure enough coverage for your retiree’s needs.
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Create a plan for long-term care during retirement.
According to the American Association for long-term care, 7.5 million Americans have some form of long-term care, and on average, a person spends three years in long-term care facilities. Long-term care expenses vary widely, but they can cost thousands of dollars per week.
Knowing this, you never truly know if you will need that care or note, but it is important to plan financially for long-term care so that if you need it, you are financially prepared. You may want to consider purchasing long-term care insurance and evaluate what kind of facility you would like to be in should the need arise.
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Map out your retirement trips in advance.
You have worked so hard to plan for retirement, so be sure to plan how you will enjoy those special years. It is important to do things that you have always wanted to do. Whether you want to buy an RV and travel across the US, or take a few weeks or months abroad, be sure that you plan accordingly so that your travel goals don’t fall to the wayside. At Trust Company of Oklahoma, we suggest evaluating how much your travels will cost, who you want to travel with, and what you would like to do while traveling. This will help you ensure that all of your adventures are actually taken.
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Build a strong circle of friends that you want to enjoy retirement with.
You will have an excessive amount of time during retirement, so it is important that you are surrounded by people you enjoy spending time with. Many people choose to move closer to their friends in retirement, and there are so many communities around the country that are designed for people to live close to each other. These communities often have rec centers and staff on hand to plan activities for locals. Even if you do not plan to move to a specific community, be sure to surround yourself with individuals that you enjoy.
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Select a retirement hobby that you love.
One of the most important things to check into as your retirement bucket list is finding a hobby that you love. Your mental health is important to care for in retirement, if not more than now. When you go from working 40+ hours a week to not working, there is a lot of time to feel as though you lack purpose. Having a hobby that you look forward to spending time completing is crucial.
The best way to enjoy retirement is to have a plan. Looking at your finances and your other goals can help you create a retirement plan that you are excited about.
Whether you are decades away from retirement or your retirement date is quickly approaching, you can get started on your retirement bucket list. Our team at Trust Company of Oklahoma is ready to help you ease into the retirement of your dreams!