Gen X, Boomers, 9 Ways to Take Your Retirement for a Test Drive

The leading generation of Generation X and the youngest baby boomers are nearing retirement. Some hear stories of people that have made the transition from full-time employment to full-time retirement and wonder how they are going to manage life after work.

Dan, a 62-year-old who recently retired, shakes his head and appears off into the space. “That just drives me crazy.” A bit amused, I ask, “What does that mean?” Dan’s head snaps back to me and shouts, “Time! I never knew how much time I would have in retirement! I wanted to be off work, but now it’s a full-time job to find new things to do.” Another friend listening just laughs and says, “I’m sure that won’t be a problem for me.” Dan looks away again and replies dryly: “Just wait.”

When we make big purchases in life, we regularly have the chance to check out or experience what now we have purchased. Whether it’s a brand new automobile, a brand new home, or perhaps a recent outfit, we often have the chance to drive it, see it, or try it on before making a purchasing decision.

However, there may be one major purchase in life that’s unlike another: retirement. Yes, despite the language that exists planning for or prepare For retirement, you’re actually buying retirement.

Retirement is arguably the one largest purchase people make, and only a few have the chance to experience what it may very well be like before retirement.

Here’s some context on how preparing for retirement is different from almost every other major financial decision and life stage.

If you choose to go to school, you may typically go on a well-choreographed tour before selecting a state school, which can come at a value Average of about $104,000 for a four-year degree or at a personal university, which is about $223,000 for a bachelor’s degree.

The average cost of a recent automobile costs nearly $50,000, but before you money out the check, take your dream wheels for a test ride, or at the least kick the proverbial tires. It’s practically a ritual of the buying process.

Even when planning a marriage, which one Average values For about $30,000, you tour venues, try on dresses, pick flowers and infrequently get the prospect to try the food before you purchase.

The most significant thing is, after all, buying a house Average values a cool over $500,000. Before you are taking out a mortgage, do a walk-through, opening the closet doors several times and making several laps across the neighborhood. The agent may even give you warm cookies to make you’re feeling good about your future kitchen.

Now let’s talk in regards to the selling price of the retirement. Research conducted by the TIAA Institute suggests that a mean couple aged 50 to 60 must have saved over seven to eight times their annual salary to retire comfortably.

Accordingly Smart assetThe average annual income of an American couple of their 60s when each are working is about $120,000, which suggests they need to save somewhere between $840,000 and $960,000 for retirement.

Pretty amazing when you concentrate on it. Saving nearly 1,000,000 dollars requires significant discipline to delay or deny lots of life’s pleasures and necessities with a purpose to save, invest and plan for something you have not even seen yet.

Unlike buying a brand new automobile and taking it for a test drive, retirement is totally recent territory. There can be no guarantee when purchasing a lemon annuity. And like my friend Dan, buyer’s remorse could last for years – perhaps even a long time.

Preparing for retirement is about far more than simply financial security. It is a vital life transition that requires careful planning and consideration to make sure you’re ready, each financially and emotionally, for this recent phase of your life.

Here are nine ideas, some easier and cheaper than others, for giving your dream retirement a test drive.

1. Start looking for retirement early because, just like the magic of compound interest, it takes time to develop a full vision of what life after work might seem like.
2. Try to continue to exist your expected fixed retirement income.
3. If you intend to age in place, spend more time at home.
4. Connect with groups or other people who find themselves involved within the hobbies and pastimes you should pursue.
5. Travel to different destinations to get a taste of what retirement life could be like there, and live such as you live every single day, not such as you’re on a luxury vacation.
6. Rent a house you should live in.
7. Are you considering a community with over 50s? Arrange an extended stay.
8. Plan a gig or volunteer job and take a look at it out on the weekend.
9. Connect with retirees who live the life-style you envision.

Talking to retirees who’re already living the life-style you would like can offer you worthwhile insight and advice for planning and preparing for retirement. You can learn more about their experiences, challenges and successes to make informed decisions about your personal retirement.

But watch out, like buying a automobile that is a lemon, few of us are psychologically able to admit to others that we were ripped off and made a foul purchase. Like me, you may learn loads from a relaxed conversation over an adult beverage of your selection.