ARE YOU READY FOR PRE-TIREMENT? How to know when it’s time to work less and play more. by LISA BLAKE
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ot quite ready to hang up your career hat? But also really feeling that call to slow down? You may be in the pre-tirement zone. Pre-tirement is the period between your decision to retire and the actual day your hat hits the hook. Rather than stopping work cold turkey at age 65, the pre-tirement path is a more gradual, nontraditional route that’s becoming an increasingly attractive and viable option for those who want to prolong their retired years, dig into some hobbies and spend more time with family while still enjoying a steady stream of carefully plotted income. “You know the saying ‘practice makes perfect’? That’s especially true for something like living out the rest of your life on a fixed income,” says Horizon Financial founder and lead advisor Holly Gallagher. Retiring gradually on your own terms takes a particular finesse. As you continue to do what you love for work while embracing more “you” time, travel time and family time, it’s important to ask yourself how your next chapter will read. EXPERT TIP: Dreaming of a pre- or post-retirement beach or mountain home? Rent short-term in your desired destination before considering buying a second home. You may find that it’s not for you after all.
“Retirement is personal and can stir up unexpected emotions. It can bring joy and relief, but also stress and grief. Don’t wing it,” says Gallagher, who has spent 30 years providing comprehensive wealth management and retirement lifestyle planning. She 12
serves clients nearing retirement or retired with a minimum of $1 million in investable assets, standing alongside a client’s CPA, banker, attorney and insurance agent to set and meet financial goals. EXPERT TIP: Before considering a phased retirement approach, talk to your employer about how reduced hours will affect your pension, health insurance and other employee benefits.
To determine when you can afford to retire and gently ease into that pace of life, you need to consider what you want to do in your golden years. Gallagher recommends being as realistic as possible when envisioning your retirement lifestyle. What interests do you want to explore that you may not have had time for while you were working full-time? What additional expenses might you incur? Do you want to travel, relocate or help fund your grandchildren’s education? A clear retirement vision helps financial advisors understand where your accounts should be as you move through your pre and post-retirement years. It can be helpful to tag team pre-tirement with your partner—while one of you dips a toe into retirement, the other continues to work full-time for another year or two. “This gives the first spouse time to get acclimated to their new routine,” Gallagher says. “It gives the couple time to adapt to one paycheck and take withdrawals out of accounts they’ve contributed to all their lives.” Lisa Blake is a freelance travel and lifestyle writer.
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