With many major purchases in life, we often have the opportunity to test out or experience the products we’re buying. We can test drive a car, tour a home, or try on a new outfit.
For the older Gen Xers and the younger Boomers, retirement is just around the bend. Just like driving a new route, our minds can race with questions. Do I have enough saved? Will the economy shift, changing my outcomes? Will my strategies crack with the pressure of unexpected risk?
How can you take your retirement for a “test drive?” Consider it the same way you’d weigh another MASSIVE LIFE PURCHASE. Think of the process involved when you buy, let’s say, a new home, a wedding or a college entrance. You’ll want to do your homework (and ENJOY the process!). Rather than cramming for a final, or winging it based on your previous experiences, consider that retirement is both 1) the biggest purchase of your life, and 2) unlike any other purchase you’ve made before.
Start with a Strategy
You’ve started saving, contributing to a pension, and dutifully sending Social Security its dues. (And if you haven’t, there’s no time like the present, because with compound interest–the earlier the better.) And there are benchmarks of all varieties to help calculate how much is enough. However, there are practical, important pieces that benchmarks don’t consider, but we vitally need to weigh as we plan to truly make this monumental purchase one we find enjoyable and fulfilling!
Trial Your Budget: Spend a few months living on the amount you’ll be living on retirement (your fixed monthly amount). Consider your spending habits and lifestyle choices, and whether your plan is something you need to adjust.
Assess Your Space: For those planning to “age in place,” give yourself thoughtful time at home. Try spending longer chunks of time in your home, seeing as you’ll be spending a LOT more time there in retirement. Imaging navigating your space in an ageing body. Does it need accomodations? (And are they feasible / affordable?)
Build a Foundation: Set aside some time to consider the pastimes and hobbies you might want to explore in retirement. Then look around and start to connect early, with groups or individuals. Consider the causes or activities you might want to pour into (weekend gigs, volunteer spots) – and give it a go for a weekend, or once a month.Stepping into retirement with some structures (friends, projects and goals, as well as rhythms of time) allows you to step in strong, ready to explore and grow.
Scout Your Spot: As you consider relocating for retirement, start traveling to those spots. But don’t travel with a luxurious budget to visit all the tourist spots, rent a home and stay a bit longer. Visit the grocery stores and local activity centers. Live normal, everyday life as much as possible. If you’re weighing 50+ communities, then arrange an extended stay in the ones you’re considering.
Draw on Others: Don’t think you have to reinvent the wheel in retirement. Connect with others who are making retirement look amazing–leaning into the type of life you’d like to have. Think specifically about “quality of life,” their level of happiness, activity and fulfillment, not just the “wow” factor of expensive trips and a costly lifestyle. They will have plenty of lessons to share, from tips on budgeting to personal mistakes they’d love to lead others to steer clear of.
And most of all, take a deep breath! Enjoy this trial run, as it’s a chance to improve your plan.
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SOURCE : 9 Ways for Boomers and Gen-Xers to Test-Drive Their Retirement Plans
This content is provided for informational purposes. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. None of the information contained herein shall constitute an offer to sell or solicit any offer to buy a security. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.
