Testing the Waters: 5 Factors to Practice Retirement Before Taking the Plunge

If you’ve been an avid reader of these articles you’ll have a better idea of the technical approach to retiring: how do you budget properly, where does it comes from, etc. As any life change, Retirement isn’t any different; it is a significant milestone in life. Often marking the end of a career and the beginning of a new chapter. For many, it's a decision filled with excitement, anticipation, and just maybe… a hint of anxiety. After all, retirement isn't just a financial change; it's a lifestyle transition. To ease into this new phase, more and more Canadians are considering testing out retirement before fully committing. But how? It sounds great in theory but with limited vacation weeks and an uncertainty about how it could look…. what factors should pre-retirees consider before taking the plunge?

The Concept of Practicing Retirement

The idea of testing retirement waters isn't entirely new, but it's gaining traction as people seek more flexibility and control over their lives. Essentially, practicing retirement involves taking extended periods off work to simulate what life might be like post-retirement. It often looks like anywhere from 2 weeks to several months doing WHAT YOU WANT TO DO. Whether that’s taking the trip ?you and your spouse have always dreamed of, or enjoying more time ?with loved ones. This trial period can provide valuable insights into various aspects of retirement living, helping give you make more informed decisions.

Factors to Consider Before Practicing Retirement

1)???? Financial Readiness

Personal Finance is more personal than it is finance. Sorry for the tongue twister but it’s true. What you wish TO spend or CAN spend… is entirely different than your neighbour, friends, or family. It’s important to be prepared financially for a successful retirement. I am a numbers guy so yes, the numbers matter. Before testing retirement, you should have a retirement income plan created for your unique situation For example if your income plan can allow for spending $7,000 a month, test it out and ensure you can live your desired lifestyle on that $7,000..Be certain your desired lifestyle is possible based on your retirement income plan and not a traditional “steady paycheck”. Creating an ?income plan for the trial period can offer a glimpse into what your retirement may look like.

2)???? Health and Wellness

Retirement isn't just about financial stability; it's also about physical and mental well-being... You may find retirement provides an opportunity to focus on health and wellness routines without the stress of work. Ensuring you are and stay healthy during retirement will make it that much more enjoyable As a local Niagara native, hiking has become part of who I am and how I spend my time. You should consider how to stay active, socialize, and what your plan is if health issues arise during retirement. Your trial period will give you the chance to explore different activities and habits that promote a healthy lifestyle.

3)???? Social Connections

One aspect sometimes overlooked in retirement planning is the social side. Who do you want to spend time with now that your time is your own ? Catching up with the girls or golfing with the boys? Your time is YOURS! Do with it what you wish. You’re shifting from work which provides a built-in social network and losing that can lead to feelings of isolation or loneliness. Before retiring, plan for your social time and consider what relationships are important to you. It’s often recommended to have friends across different generations. Why? Different perspectives and health from others can give you ideas for a more fulfilling life.

4)???? Hobbies and Interests

Retirement offers the freedom to pursue passions and hobbies that may have been neglected or cast aside during your working years. Explore your interests and hobbies during the trial period to see if they provide the fulfillment and purpose you’re looking for. You may find that things have changed and new activities could excite you like pickleball or gardening or going for walks in nature.

5)???? Emotional Preparedness

The last factor to consider as you go through a major life transition is the mix of emotions it can bring up. From feeling excited to uncertain and maybe even a loss of purpose… Retirement is new; ?-and some of us struggle with change.. Before practicing retirement, reflect on how ready you are emotionally for this new chapter. You may find your identity will change and finding new sources of purpose and meaning outside of work. Be open with your loved ones and family members. Seek support from peers or professionals as you navigate this emotional journey.

Conclusion

To wrap up, testing out retirement before making the final decision can be a valuable step in the retirement planning process. It gives you the chance to assess various factors, from financial readiness to emotional preparedness, and make adjustments as needed. By taking the time to practice retirement, you can enter this new phase of life with confidence, knowing you have explored aspects of what retirement living entails. It may confirm you are ready to take the plunge or ?it may give you some other aspects to consider further . This is a healthy and proactive way to test the waters. Either way, it’s okay and you’ll have a better idea of your next step. Til next month, take care and enjoy the beautiful summer weather. Patio season, wooo!

DISCLAIMER:

The contents of this letter does not constitute an offer or solicitation for residents in any other jurisdiction where either Cody Weber and/ or Sterling Mutuals is not registered or permitted to conduct business. The opinions expressed are those of the authors and do not necessarily reflect the views or opinions of Sterling Mutuals Inc. Mutual funds provided through Sterling Mutuals Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus carefully before investing. Mutual funds are not guaranteed, their values fluctuate frequently, and past performance may not be repeated.