How to test run your retirement

Here are this week's top pieces of financial news and advice:

Taking a retirement test run

From a distance, retirement might seem "like a slice of heaven," said Pamela Sams at Market Watch. But transitioning into your golden years comes with its share of challenges. "The longer you prepare, the easier it will be to attain your goals." For many, simply moving from full-time work to full-time leisure can be stressful. If you're able, consider taking a month or two off the year before retiring. "If you find yourself a little blue or listless, take this as a red flag." Not cashing a regular paycheck will also have a big impact on your spending habits, so before taking the leap, look at your income and assets to develop a postretirement budget. If you find you can "live happily within your anticipated means," the good life awaits.

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Passing on a vacation home

Owning a family vacation home "can create beautiful memories," said Vickie Elmer at Kiplinger. But "without careful planning, you may find yourself embroiled in bitter battles over the home's future." The key is creating "a detailed plan for succession." Start by sitting down with your adult children and their spouses to discuss whether to keep the home in the family or sell it outright. Both options have advantages, but it's essential to know what everyone's needs and desires are. If you decide to keep the house, "draw up a written plan you all agree to" for covering expenses, maintenance, and a schedule for using the house. When it comes to "passing it on," be sure to consult with an estate-planning lawyer "to figure out the gift- and estate-tax implications of a transfer."

Social Security worries mount

Americans increasingly see Social Security as a key part of their retirement, said Glenn Ruffenach at The Wall Street Journal. Thirty-six percent of American adults who are not yet retired "expect to rely on Social Security as a major source of income" when they retire, 10 percent more than a decade ago. Yet even though the best way to maximize those benefits is to delay claiming them until age 67 or older, fully 73 percent of retirees are receiving reduced benefits due to early claims. These stats "come at a time when the Social Security program itself is straining to meet demands." The trust fund is scheduled to run out in 2033, after which Social Security recipients could receive just 75 percent of their expected benefits.