Ep # 143 - Test-Drive Retirement: Mini Retirements, Intentional Living, and Finding Joy with Jillian Johnsrud
In this episode of Your Retirement Planning Simplified, Joe speaks with intentional living expert Jillian Johnsrud about redefining retirement through mini-retirements and value-driven living. They explore how to “test-drive” retirement, shift from a savings to spending mindset, and find joy and purpose in the next chapter of life. This conversation is packed with practical wisdom for retirees and pre-retirees looking to retire to something, not just from work.
Key Takeaways
· Mini-Retirements as Test Drives: Taking one- to three-month breaks before full retirement can help you practice the non-financial elements of retirement like time management, relationships, and hobbies.
· Schedule Practice: Most of us have never truly managed our own time—mini-retirements help retirees learn how to structure meaningful days.
· Purpose Requires Experimentation: Many retirees don’t instantly know their purpose; trying different activities is the key to discovering what truly brings fulfillment.
· Balancing Security vs. Freedom: Financial independence isn’t just about saving—retirees must learn to use money for joy, not just safety.
· Dreaming Big After 50: It’s never too late to revisit abandoned passions or explore new interests that spark curiosity and excitement.
Ideas Worth Sharing
· "Mini-retirements are like a 5K before the retirement marathon—low-risk ways to test what a retired life might feel like."
· "Retirement happiness isn’t just about reducing stress—it’s about actively adding joy."
· "You might not find your purpose right away, but make it a priority to explore until you do."
· "You’ve already paid for the Paris trip—don’t skip the crepes and the coffee when you get there."
· “High performers take timeouts—mini-retirements are halftime for your life."
Resources
Jillian's book: Retire Often (Available for pre-order, releases September)
Website: retireoften.com
*Free life planning worksheets available on her website
Mini-Retirements: A Guide to Reimagining Your Retirement Journey
In the traditional Canadian retirement landscape, the path has always seemed straightforward: contribute to your RRSP for decades, maximize your CPP benefits, perhaps build a TFSA, then finally clock out at 65 to enjoy your golden years. But what if there's a more fulfilling approach to retirement planning that aligns with today's changing work culture and longevity expectations? Enter the concept of mini-retirements.
What Are Mini-Retirements?
Mini-retirements – planned breaks ranging from one to twelve months – offer Canadians a chance to temporarily step away from their careers while still in their prime earning years. Unlike the traditional Canadian retirement model that postpones enjoyment until your 60s, this innovative approach allows you to distribute periods of leisure and exploration throughout your working life.
"Mini-retirements function like training runs before the marathon of full retirement," explains retirement planning expert Jillian Johnsrud, whose insights apply beautifully to the Canadian financial landscape. "They provide low-risk opportunities to discover how you'll spend your days when you're no longer reporting to work, while still having the safety net of returning to income-generating employment."
Financial Planning for Mini-Retirements
For Canadians concerned about funding these career breaks without jeopardizing their long-term retirement goals, financial diversification is key. Consider organizing your finances into these essential "buckets":
Emergency Cash Savings – Beyond the standard advice of three to six months' expenses, Canadians planning mini-retirements might aim for a more substantial cash cushion in high-interest savings accounts or GICs
Market Investments – Leveraging registered accounts like TFSAs and RRSPs strategically can provide both tax advantages and growth potential
Side Hustles – Developing secondary income streams that can continue during your mini-retirement period, such as consulting, freelancing, or seasonal work
Passive Income Sources – Rental properties in emerging Canadian markets, dividend-generating Canadian stocks, or other investments that produce cash flow without active work
Debt Reduction Strategies – Minimizing mortgage payments, eliminating high-interest debt, and potentially exploring options like the Smith Manoeuvre for tax-efficient borrowing
This diversified approach to financial planning is particularly relevant in Canada, where our tax-advantaged accounts, government benefits, and healthcare system create unique opportunities and considerations for those exploring alternative retirement paths.
The Psychological Benefits of Mini-Retirements
One of the greatest challenges Canadian retirees face isn't financial—it's psychological. After decades of diligent saving in RRSPs and other vehicles, many Canadians struggle with the transition to spending. Mini-retirements can help break this psychological barrier.
"It's like planning a dream vacation to Banff or Niagara Falls but then refusing to spend a little extra to truly enjoy the experience," Johnsrud notes. "You've already committed to the big expense—don't skip the small pleasures that make it meaningful."
Mini-retirements also address another common issue among Canadian retirees: the misconception that retirement automatically reveals your purpose. Many Canadians reach retirement with extensive bucket lists, only to discover that checking off items doesn't necessarily create fulfillment. By taking mini-retirements throughout your career, you can experiment with potential hobbies, volunteer opportunities, and lifestyle choices before making permanent decisions.
Implementing Mini-Retirements in the Work Environment
Canadian workplaces are increasingly recognizing the value of sabbaticals and extended leaves. Many employers now offer options like:
Deferred salary leave plans (sometimes called self-funded leave arrangements)
Unpaid leave with job security
Reduced work schedules or job sharing
Remote work arrangements that allow for "workcations" in different Canadian regions
For entrepreneurs and self-employed Canadians, mini-retirements require careful business planning but often offer greater flexibility in timing and duration.
Canadian Success Stories: Mini-Retirements in Action
Consider Sarah from Toronto, who took a three-month mini-retirement at 40 to hike the East Coast Trail in Newfoundland, something she'd always imagined doing "someday" in retirement. Not only did she return to work rejuvenated, but she discovered that while she loved outdoor adventures, she preferred them in two-week segments rather than continuous travel—valuable insight for her eventual retirement planning.
Or take Marcus from Edmonton, who used a six-month mini-retirement to test-drive living in Victoria, BC, his planned retirement destination. During this trial period, he realized that while he loved the climate, he missed the community connections he'd built over decades in Alberta—prompting him to revise his long-term retirement location strategy.
Planning Your First Canadian Mini-Retirement
Ready to explore how mini-retirements might enhance your Canadian retirement journey? Start with these steps:
Review your financial picture – Work with a financial advisor familiar with Canadian tax law and benefit programs to understand how a temporary career break would impact your finances
Explore employer policies – Investigate whether your workplace offers sabbatical programs or flexible work arrangements that could facilitate a mini-retirement
Start small – Consider beginning with a one-month mini-retirement to test the concept before committing to longer periods
Set intention and purpose – Determine what you hope to learn or experience during your mini-retirement, whether it's exploring a potential retirement location or developing a hobby
Build re-entry plans – Create a strategy for returning to work or transitioning to new income sources after your mini-retirement concludes
The Future of Retirement
As Canadians live longer, healthier lives, the traditional retirement model is evolving. Mini-retirements represent an innovative approach that aligns with changing work patterns, increased longevity, and the desire for more balanced living throughout our adult years.
Whether you're a millennial Canadian looking to build more flexibility into your career path, a Gen X Canadian feeling burnout in your peak earning years, or a baby boomer Canadian wanting to transition gradually into retirement, mini-retirements offer a compelling alternative to the conventional work-until-65 paradigm.
As Johnsrud suggests in her upcoming book "Retire Often," the goal isn't just to retire from something—it's to retire to something meaningful. For Canadians planning their financial futures, this perspective shift could be the key to a more fulfilling retirement journey—one that begins long before you receive your first CPP payment.
This article is intended for general information purposes only and should not be construed as professional financial advice. Always consult with a qualified financial advisor regarding your specific circumstances and goals before making retirement planning decisions.