Experiment Before Committing to Change

As individuals approach retirement, they should consider trial runs for major lifestyle changes, such as relocating, to ensure a smooth transition. It's important to test new spending habits since shifting from saving to spending from a retirement portfolio can be challenging, particularly for diligent savers. Engaging in practice spending, like purchasing a car with cash, can ease this transition. Research shows that early retirement years often involve increased spending due to pent-up demand for activities and financial support for adult children, making it essential to adapt to new financial behaviors strategically.