![How to Test-Run Your Retirement This Summer Thumbnail](https://static.twentyoverten.com/content/featured/featured_howtotestrunyourretirementthissummer.jpg)
How to Test-Run Your Retirement This Summer
Summer often brings images of relaxation, beach trips, and lazy days. For those nearing retirement, it can also be the perfect time to test-run what their retirement might look like. It's an opportunity to dip your toes into the waters of post-career life (literally), ensuring you're ready to embrace this new chapter when the time comes.
Testing out retirement during the summer allows you to experience a taste of freedom without work constraints. Here's how to plan your trial retirement for this summer:
Define Your Goals
Before you embark on your trial retirement, take some time to define what you hope to achieve. Do you want to travel more? Spend time with family? Pursue hobbies or interests you don’t have time for when working full-time. Having a clear vision of what you want out of retirement will guide your activities while taking a summer break.
Create a Budget
Retirement often comes with a fixed income from savings, pensions, or investments. According to the Bureau of Labor Statistics, people aged 65 and older spent about $52,141 in 2021.1 But everyone’s expenses are different. Use this trial period to create a budget based on your expected retirement income. Track your expenses during the summer to see if your budget aligns with your lifestyle goals. This exercise can highlight areas where you might need to adjust spending or find ways to save.
Test Your Routine
One of the most significant adjustments in retirement is the change in routine. Use the summer to experiment with different schedules. Sleep in if you want to, but establish a daily routine that includes activities you enjoy. This could be gardening, reading, volunteering, or exploring new hobbies. Testing different routines will help you find a balance that suits your preferences.
Travel and Explore
If travel is on your retirement agenda, use this summer to test the waters. Plan a road trip, visit family or friends in different locations, or simply explore your city as if you were a tourist. Pay attention to how you feel during these trips. Does constant travel bring you joy, or do you prefer the comfort of home? This insight will shape your future travel plans in retirement.
Engage with Your Community
Retirement can sometimes feel isolating, especially if your social interactions are primarily tied to work. Use this trial period to engage with your community in new ways. Attend local events, join clubs or groups that align with your interests, or volunteer for a cause you care about. Building a social network outside of work is crucial for a fulfilling retirement.
Assess Your Health and Wellness
Your health is perhaps the most important aspect of a happy retirement. Use the summer to focus on your well-being. Establish an exercise routine that works for you, try out different healthy recipes, and schedule any necessary check-ups or appointments. Pay attention to how you feel physically and mentally during this trial period.
Reflect and Adjust
Throughout the summer, take time to reflect on your experiences. What aspects of retirement living did you enjoy the most? What challenges did you face? Be open to adjusting your plans based on these reflections. Retirement is a journey, and your trial period is just the beginning.
Financial Review
At the end of your trial retirement this summer, review your finances. Did your budget hold up? Were there unexpected expenses? This review will give you a clearer picture of your financial readiness for retirement. If adjustments are needed, now is the time to make them.
Testing out your retirement during the summer is a valuable exercise in preparing for this significant life transition. It allows you to experience the freedom and flexibility retirement offers while highlighting areas needing fine-tuning. This summer, embrace the opportunity to test-run your retirement and pave the way for a fulfilling and enjoyable next chapter in your life.
As always, let us know if you have any questions.
Best,
CRA Investment Committee
Matt Reynolds CPA, CFP®
Tom Reynolds, CPA
Robert T. Martin, CFA, CFP®
Gordon Shearer Jr., CFP®
Jeff Hilliard, CFP®, CRPC®
Joe McCaffrey, CFP®
Phillip Tompkins, CFP®
Important Disclosure Information
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by CRA Financial, LLC [“CRA]), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from CRA. Please remember to contact CRA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. CRA is neither a law firm, nor a certified public accounting firm, and no portion of the commentary content should be construed as legal or accounting advice. A copy of CRA’s current written Disclosure Brochure discussing our advisory services and fees continues to remain available upon request or at www.crafinancial.com. Please Note: If you are a CRA client, please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
Historical performance results for investment indices, benchmarks, and/or categories have been provided for general informational/comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. It should not be assumed that your CRA account holdings correspond directly to any comparative indices or categories. Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your CRA accounts; and, (3) a description of each comparative benchmark/index is available upon request.
Please Note: Limitations: Neither rankings and/or recognitions by unaffiliated rating services, publications, media, or other organizations, nor the achievement of any professional designation, certification, degree, or license, or any amount of prior experience or success, should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if CRA is engaged, or continues to be engaged, to provide investment advisory services. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser. Rankings are generally limited to participating advisers (to the extent applicable). Unless expressly indicated to the contrary, CRA did not pay a fee to be included on any such ranking. No ranking or recognition should be construed as a current or past endorsement of CRA by any of its clients. ANY QUESTIONS: CRA’s Chief Compliance Officer remains available to address any questions regarding rankings and/or recognitions, including the criteria used for any reflected ranking.