As you plan for or live through retirement, one of the most exciting aspects is thinking about all the things you’ve always wanted to do—whether that’s traveling, attending major events, or diving into new hobbies. But while imagining these must have experiences is fun, the reality of paying for them is a different story. Can your retirement income support the activities you love most? It’s important to assess whether your finances can match your vision for retirement.
Will Your Favorite Activities Fit Into Your Budget?
The cost of your retirement lifestyle will depend on how you want to spend your time. For some, the most enjoyable activities—like reading, meditating, or listening to music—don’t cost much at all. However, if you’re dreaming of more expensive endeavors, like skiing, traveling extensively, or attending sporting events, these activities will require a much larger portion of your retirement income.
To make sure your retirement budget can support the things you love, ask yourself:
- What are my favorite leisure activities?
- Will these activities cost more than I currently spend on hobbies and travel?
By clarifying what you truly want to do, you can start analyzing your retirement income to see whether it will cover those costs.
Can Your Income Support Your Dreams?
Once you’ve defined your Must Haves, it’s time to look at the numbers. Can your budget handle one big trip every year? What about a single trip of a lifetime? Maybe you’d like to spend a month at spring training for your favorite baseball team. Don’t forget to factor in all the costs—tickets, hotel, food, travel expenses, and even pet boarding—plus add an extra 30% to 50% for unexpected expenses.
If your Must Have includes something like living abroad for several months, remember to account for traveler’s health insurance and other hidden costs that may arise.
What Trade-offs Are You Willing to Make?
If your heart is set on a Must Have experience, ask yourself: what am I willing to trade off to make that happen? Retirement is about balancing your desires with your financial reality. Maybe you’re willing to cut back on dining out or shopping to free up funds for your dream vacation or annual event. Making smart trade-offs can ensure that your Must Have moments don’t break the bank while still allowing you to enjoy the retirement you’ve worked hard for.
Keep Your Finances in Check
It’s important to remember that thorough number-crunching is critical to avoiding unpleasant surprises. Verifying that you can afford your Must Have experiences is the less glamorous part of retirement planning, but it’s necessary for your peace of mind. You want to be sure that while you’re fulfilling your dreams, you’re still able to pay your bills and rely on your income for the long term.
As exciting as these plans are, they need to be backed by financial resources. It’s no fun to plan a dream vacation only to realize later that it will hurt your long-term security. Careful planning ensures you can enjoy what you want without financial stress.
Looking Forward, Not Living in the Past
Picturing the kind of retirement you want helps you look forward to the future and move on from the job identity you once held. Planning your Must Have experiences helps you feel more in control, more excited, and more engaged with what’s to come in your life.
If you’re already retired, you might find that your routines have become dull or repetitive. Your house may provide a “to-do” list, but it’s no longer enjoyable. Ask yourself whether you’ve fallen into a routine because it’s easier than making a change. Are you avoiding new experiences because it feels like too much work? Or because you’re worried about the costs?
Plan for Your Must Haves Without Compromising Your Financial Security
If you’re unsure whether your retirement income can support your Must Have experiences, I’m here to help. At Wealthy Choices®, I can guide you through a thorough financial analysis to ensure your plans are realistic and affordable. Contact me today at 781-577-2311 or visit wealthychoices.com to start creating a retirement plan that allows you to enjoy the things you love most.
