What is a pre-retirement trial run?

A pre-retirement trial run is a period where you temporarily live on your projected retirement income and engage in your planned retirement activities while still having the safety net of your current job. It helps you test your financial readiness and lifestyle expectations before fully retiring.

How long should a pre-retirement trial run last?

Most financial experts recommend a trial run of at least three to six months. This duration is long enough to experience a full range of monthly expenses and routines, including some seasonal variations, without being overly disruptive to your current work life.

What are the main benefits of doing a pre-retirement trial run?

The main benefits include identifying hidden financial gaps in your retirement budget, testing whether your planned retirement lifestyle is fulfilling, and allowing you to make necessary adjustments to your financial plan or lifestyle expectations before you fully retire.

Can I do a pre-retirement trial run if I can't take extended time off work?

Yes, you can. While taking a sabbatical is ideal, you can simulate a trial run by strictly adhering to your retirement budget for several months, saving the difference between your current income and projected retirement income. You can also use vacation days to test out specific activities or routines.

What is a phased exit, and how does it differ from a trial run?

A phased exit is a gradual transition into retirement, often involving reducing work hours or responsibilities over several years. A trial run is a temporary simulation of full retirement. A phased exit can be a long-term strategy *after* a trial run, or it can serve as a form of extended trial run itself.

How much money do I need to save for retirement?

The amount needed for retirement varies greatly based on individual lifestyle, health, and desired spending. A common guideline is to aim for 70-80% of your pre-retirement income, but a pre-retirement trial run is the best way to determine your *actual* specific needs. Financial advisors often recommend having 25 times your annual expenses saved.

What should I do if my trial run reveals I'm not financially ready?

If your trial run shows you're not financially ready, you have options. You can increase your savings rate, work a few more years, reduce your projected retirement expenses, or explore part-time work options in retirement. The key is to identify the shortfall early so you can make informed adjustments.

Pre-Retirement Trial Run: Test Financial Readiness | One…