Full Transparency – Retirement is still many years away for me, but I feel I am retirement-adjacent, regularly participating in discussions and decisions about it. As a result, I often find myself considering—and perhaps daydreaming about—what my own eventual retirement might look like.
One retirement trend that frequently crosses my mind is semi-retirement. Also known as phased retirement or working retirement. Semi-retirement comes in many forms, but the core idea remains the same: one reduces one’s work hours from full-time to part-time for a period before fully retiring.
Why Choose Semi-Retirement?
Three of the more common reasons people choose to transition into retirement in this manner instead of making the leap into full retirement include:
- The opportunity to pursue a passion and/or reconnect with one’s hobbies.
- The social aspect and sense of purpose that comes from working.
- The potential ‘shock to the system’ of no longer receiving a paycheck.
Pursuing a Passion / Reconnecting with Hobbies
Have you thought about what you’ll do with all your free time in retirement? Do you enjoy activities like golfing, hiking, reading, or cycling? I once worked at a sporting goods store, where one employee was a retired rocket scientist who worked a couple of days a week. He didn’t need the income, but he loved road biking and got to spend 8-16 hours weekly inspecting the latest gear and chatting with fellow cyclists—not to mention enjoying a discount on products he would buy anyway.
Some of us, myself included, are gearheads who spend our free time reading about the latest and greatest equipment, so why not get paid for it? Personally, I envision a part-time role as a golf course marshal in my semi-retirement years, but I could also see myself working at a local library, bookstore, or returning to the sporting goods industry—who knows?
Socializing and Purpose
Spending 40+ hours a week with coworkers typically involves socializing. Transitioning from that much daily interaction to none can be a drastic change, especially since humans are social creatures. Additionally, there is a unique satisfaction that comes from collaborating with others toward a common goal. A part-time job can help fill the socialization void left by leaving a full-time position.
No Longer Receiving a Paycheck
For many people, the thought of suddenly not receiving that monthly paycheck can be very shocking and disconcerting. Understandably! For 40+ years you have probably been paid on a regular basis and saved for retirement on a regular basis. You’ve watched your accounts grow over time.
Now suddenly you’re expected to just switch gears, like moving forward at 60 mph and then suddenly throwing the car into reverse. That sense of moving into unfamiliar territory, or of looking at your wealth as more ‘finite’, can often delay the act of retiring.
This is where a phased retirement comes in. A part-time job you enjoy can provide you with a taste of retirement during this transitional period. For example, working part-time as a marshal at your local golf course three days a week could allow you to reduce your full-time work for an additional year, while still giving you time to work on your short game on the clock.
Some employers may even allow long-term employees to transition from full-time to part-time roles at a lower pay rate, while still maintaining their benefits.
Conclusion
Of course, there are essential factors to consider in this decision, such as health insurance costs, defining what part-time work means to you, and your commute, to name a few. However, the key takeaway is that retirement can take many forms, and just because you’re being paid for something doesn’t mean it can’t facilitate your journey toward retirement.