While the mantra might be “life begins at 40”, over 55s are planning to live their life to the fullest as Covid-19 restrictions lift. Retirement might be associated with taking it easy and putting your feet up, but over 55s are planning to explore new places and tick other items off their bucket list in the coming years. However, finances could hold some back.
With more free time and fewer commitments, retirees are finding they have an opportunity to pursue their dreams. According to a Royal London survey, 64% of over 55s are planning to travel more once the pandemic is over, and many others are hoping to tick off once in a lifetime experiences. The survey found the top bucket list items are:
- Seeing the Northern Lights (53%)
- Travelling on the Orient Express (42%)
- Visiting one of the seven wonders of the world (36%)
- Moving or purchasing a home abroad (25%)
- Going on safari (22%)
- Taking a hot air balloon ride (20%)
- Going to a major sporting event (20%)
- Driving a supercar (16%)
- Volunteering for charity (13%)
- Going to a festival (13%).
How do you want to spend your 50s and 60s?
Thinking about what you want to achieve in your 50s and beyond can set you on the right track for reaching your goals. Whether you want to travel more in the next few years or spend time on a hobby, creating a plan means you’re far more likely to be able to tick off your aspirations and live the lifestyle you want.
Setting out your goals now means you can put a plan in place to achieve them. While the research found over 55s are keen to carry on experiencing new things, it also discovered they could be held back.
Nearly half (43%) of over 55s said they’d regret not achieving their bucket list items. A third (36%) cited lack of money for the reason they haven’t yet achieved goals. For others, work and family commitments, or poor health was holding them back.
Making your goals part of your financial plan can mean you have the confidence to pursue them.
Do you have enough to complete your bucket list?
As you retire, it can be difficult to understand how your assets will create an income. Often, you’ll need to bring together multiple sources of income and consider how your needs will change over decades. As a result, you may not be sure if you’re able to tick off bucket list items without placing your financial security at risk.
Financial planning can help you understand if you have enough to reach all your retirement goals. It can help you understand how all your assets, including pensions, savings, and property, can work together to provide an income in retirement.
However, for those unsure if they have enough for once in a lifetime experiences, the real value of financial planning comes in understanding how their decisions in early retirement will affect the rest of their life. If you withdraw a £30,000 lump sum from your pension to travel the world, would you still have enough for the rest of your retirement? What would happen if you needed care later in life? Would spending now to turn a dream into a reality mean you’d have less choice?
We can help you put these decisions into perspective. Using cashflow modelling, we can help you visualise how spending to complete your bucket list will affect your income in the short and long term. This means you understand the full implications of the decisions you make.
In many cases, we find retirees can meet their goals or that there are steps they can take to release capital from other assets. Financial planning can give you the confidence to pursue your dreams, whether that’s booking an exotic holiday or booking tickets to a sporting event you’ve always wanted to attend.
If you’d like advice as you retire that considers your aspirations, please contact us.
Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.