YEI Viewpoint: What does a Retirement Test-Run look like?

Joan and Michael had a “retirement dress rehearsal”.  Read their story and YEI’s thoughts and views on simulating a retirement lifestyle to check your preparedness for this phase of your life.

Retirement is often painted as the utopia phase of life filled with relaxation, adventure, and freedom. But many who have gone before you – those who “have done that, and got the t-shirt” will tell you that the transition from decades of work to full-time leisure isn’t quite as we imagine. For many, the reality of retirement comes with its own set of challenges — from finding new routines to grappling with an identity shift.

A tried and trusted method in preparation for this life-changing event is taking a “retirement test-run”. Whether we are staring retirement in the face, or contemplating retirement in five years, a retirement test-run could be the way to prepare, but what exactly does this entail, and why should we do it?

What Is a Retirement Test-Run?

A retirement test-run is a trial period where you simulate the experience of retirement before fully committing to it. During this time, you take some time, perhaps step away from your full-time career, in order to see how you adjust to a slower pace of life, and find out how you think you will spend your days once the big day comes. The goal of a retirement test-run is to help you assess the emotional, social, and financial aspects of retirement while giving you time to fine-tune your plans.

Joan and Michael made the decision, as pre-retirees, to have a “dress rehearsal” of their upcoming retirement. They did not do a full-on retirement rest-run, as they were unable to take the time off work, but they did “trial” aspects of retirement. On the financial side, they became “budget parasites” – in other words, they cut out non-essential spending. They studied their expenditure and slashed any expense that was not a necessity. On the health and wellness side, they reinstated their cycling hobby as a means of keeping healthy and active, which also meant they had a lot of fun. They decided to develop new, varied interests to keep their brains active while simultaneously finding out what sort of activities were of interest to them. They both signed up as volunteers at local kennels, which fulfilled their love of pets and gave them purpose plus exercise. They made the conscious decision that they were not at the end of their lives, but were experiencing new beginnings. Their mantra became “Keep learning, make new relationships and just enjoy life”. In addition, they decided to take on the services of a financial advisor in order to proactively manage their money. On this note, we were told that they wished they had done that much earlier in life!

A retirement test-run is excellent for the following reasons:

You need to find your sense of purpose which will then allow you to figure out how you are going to fill your time. You’ve been working for so long, it’s likely that you haven’t had the time to explore or experiment with new or existing interests and hobbies. Having the time to experiment is invaluable – you could discover that you might like to run a side business, or travel, or take up pottery. Reflect on what works for you and what doesn’t.

Make no mistake – retirement leads to a psychological shift. It is said that 40% of retirees suffer from depression. Not surprising as by leaving the world of work, your identity and purpose has gone. That’s why it is critical to have a test-run of retirement so you can start reimagining yourself in this new phase of life. One needs to ease into this transition of retirement by finding a new sense of purpose and focussing on personal interests, your new role in the community and spending time on personal interests. You may like to explore a new place to live, downsize your home, travel or test the waters in retirement destinations.

Socialising with family and friends is hugely important. Ensure that you stay connected with friends and family, reconnect with old friends, try out new social groups, make new friends in different groups or through your interests and hobbies. Become active in your community.

Focus on your mental and physical well-being. You could live to become a centenarian – you need to get and keep fit and well for this. Don’t be caught off-guard – start that health and fitness regime today. Don’t become a couch-potato.

Will your money last? (Have a listen of YEI’s podcast here – You could live to 100, Will your money last? Link: ). Try living life on your pension. Set up a budget that pretty much mirrors your post-retirement income. A retirement test-run will enable you to refine your retirement finances while adjusting your strategy as needs be. This exercise will give you a clear indication of what adjustments are needed when it comes to your finances.

The good news is that by doing a retirement test-run, you will be financially, mentally and emotionally prepared for the next fulfilling phase of your life. So why wait? The future you will thank you for it!

Do share your stories about your retirement and preparation (or not) for retirement in the comments below.

Article written by YEI