7 Tips for Test-Driving Your Retirement

Engage in diverse activities

Explore a variety of pastimes that pique your interest. In Playa del Carmen, Fluker joined a local expat collective and has tried everything from Pilates classes to a double Dutch jump roping group. Double Dutch": History​National Double Dutch League ​https://www.nationaldoubledutchleague.com › history​

Delving into different pursuits not only enriches your pretirement experience but also can reveal passions you may wish to pursue post-career.

As you conduct your test runs, keep in mind that you only need be as busy in retirement as you want to be. Think through how much time you want to devote to hobbies, volunteering, engaging with family or just resting. Experiment with this routine while you’re still working — for example, you might take Fridays off for a month to see how you feel about a new pace and routine. Tweak the timing until you find a satisfying balance.

Test drive your retirement budget

Before you commit to a location or a lifestyle, you want to make sure you can afford it. Develop a retirement budget and give it a test run — try sticking to it for two or three months while you’re still working.

Make a budget for housing, food, entertainment and other costs, taking into account where you want to live and what interests you want to pursue. Weigh those numbers against your expected income. Do you plan to work part-time in retirement? How much will you get from Social Security? How much can you regularly draw from retirement accounts without draining them too fast? 

Financial planner Saundra Davis estimated her retirement budget about four years ago and has been living on it ever since.

“I live within a budget of $3,000 a month,” says Davis, 63, who owns Sage Financial Solutions in Northern California.

“I don’t do needs versus wants. Instead, I separate my living expenses from my lifestyle expenses,” she says. Between savings, veterans benefits (she served in the Navy) and what she and her partner can expect from Social Security, she adds, “If I never worked another day in my life, I would be just fine,” but work provides for their lifestyle expenses, like a love of travel.

Don’t forget health care costs. Fidelity estimates the average healthy 65-year-old couple will need $315,000 for their lifetime medical expenses. Including that in your estimates can surface potential income shortfalls before you retire.

Assess your relationships

Retirement can have a major impact on relationships with your spouse, family and friends. You may spend more time together, or more apart. Examine these connections during your trial run.

Have candid conversations about expectations and boundaries. Schedule regular date nights with your spouse or partner and consider how much or little you’ll interact with friends.

A long-running Harvard study found that people’s happiness in retirement is largely driven by the quality of their relationships. For some, more time with a spouse after retirement can put a strain on the marriage. A pretirement stress test can help you identify and address potential stress points and strengthen your bond.

A retirement trial period can also give you time to tend to family matters that need attention. Before Fluker moved to Mexico, she had spent six years caring for her aging parents. She was able to help them navigate their transition to an assisted living facility of their choice before she relocated.

Take stock of your emotional readiness

Pay attention to your emotional state during any test run. Keep a journal about how activities make you feel. Observe your stress level and take note of any patterns.

Bouts of angst or boredom could be signs that you need to adjust your anticipated retirement routine to better suit your temperament, while enthusiasm and happiness indicate you’re on the right track. Don’t underestimate the psychological impact of retirement. Your trial run can highlight any emotional pitfalls to address.

Reflect, refine, re-evaluate

After a retirement test run, reflect on your experiences. Did the reality match your expectations? What worked well and what needs refinement? Be honest with yourself about what seemed less than ideal. Armed with these insights, you’ll be better equipped to make adjustments and define a retirement that is fulfilling and achievable.

The key is allowing ample time. Waiting too long limits your ability to establish the conditions and habits necessary for success. Starting test runs in your 40s or 50s gives you years to tweak plans — hopefully to near perfection.

By trying out the lifestyle she wanted well ahead of retirement, Fluker was able to have a memorable 50th birthday, marking the milestone in Mexico in 2023 by doing something she could never have afforded in the States: She rented a fancy yacht for 70 people and celebrated in style.

“I’m glad I’m doing this now, while I’m healthy enough to enjoy it,” she says. “It’s such a fuller life, and I’m so grateful.”