We often get the chance to try out big purchases before committing, but unlike buying a car, there’s no way to take retirement for a test drive. Or is there?
Retirement is no longer just a point in time, but rather another whole life stage than can last for 30-plus years as people live longer. For many, retirement is unknown territory, with little guidance or insights beyond the popular images of beach walks, pickleball and travel. While these activities may represent the dream of relaxation and leisure after years of work, they offer only a limited view of what retirement entails.
Transitioning to retirement can mean significant changes in daily routines, social interactions and personal identity. Without comprehensive preparation and a clear vision of how to spend this new phase, retirees may grapple with an unexpected abundance of free time, a need for meaningful engagement and the challenge of redefining their sense of purpose.
To navigate this uncharted territory, it takes more than just financial planning; it takes a holistic approach. How can you test drive retirement? Here are five considerations suggested by MIT AgeLab , a key healthy-aging partner of RBC Wealth Management.
Consider what you want from retirement. Visualize and plan how you see yourself spending your newfound free time, factoring in what you’ll do, where you’ll be and who you’ll be with.
Why? Like any good plan, the earlier you start, the better. Thinking ahead gives you time to consider and evolve your views.
Consider calculating your projected retirement income and creating a monthly budget based on this amount. For one month, stick strictly to this budget.
Why? Scenario testing will help identify any adjustments you may need to make when living in retirement.
Consider talking to friends and relatives who are living the lifestyle you envision for yourself, asking about their experiences, challenges and advice. You might also connect with organizations that are of interest to you or explore new hobbies.
Why? These fact-finding missions can offer insights that will help you plan, but can also expand and strengthen your social networks so they’re already in place before you officially retire.
Consider taking a vacation in a community in which you’d like to live in retirement or as you age. You might arrange for an extended stay in an age-friendly community or try a short-term rental in a smaller dwelling or different area of your town or city. Spend your time as if you were retired and this is your permanent residence.
Why? This immersive experience can give you firsthand knowledge of the community life, activities, amenities and social experience—all on your own terms.
Consider taking on a part-time job or volunteer opportunity and dedicate a few hours a week to determine if it’s the right fit for you.
Why? Testing your options in advance can help you understand the commitment required and the fulfillment they can offer in retirement.
As Dr. Joe Coughlin, founder and director of MIT AgeLab, says when speaking about longevity planning: “There’s got to be a story that is greater than somewhere between cruise ships and crutches.” Watch the video “Explore the connection between wealth, health and aging” to hear more from Dr. Joe and other healthy-aging experts.
To learn more about RBC Wealth Management’s focus on preparing Canadians to live longer with health, security, independence and control, visit the Longevity: Aging well hub.
A version of this article was originally published by MIT AgeLab.
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