To live a semi-retired life it is necessary to let go of our ideas of traditional retirement. In fact, these are not really our ideas at all, but just some concepts we picked up along the way. Semi-retirement is a much more fluid concept that allows us to create the lifestyle that we desire at any age given proper planning and application.
The main flaw of traditional retirement is that it is an illusion based on hypothetical premises. Most folks don’t fit into this category, so let’s discuss a more realistic approach.
The Art of a Semi-Retired Life
Semi-retirement is more of an art than science because we are all unique individuals, and are creating our lives based on our personal desires and needs. Also, our experiences and abilities differ, so that what works for one person does not for another, but there are ways to maximize the different stages of retirement.
Transitioning from working to retirement is not about a specific date when one ends and another begins. Such an abrupt retirement is no longer the case, as the era of well-defined benefit pension plans has been surpassed by IRAs and 401 (k)s.
It is now more about a fluid transition into another stage of our lives where we prepare for new experiences and adventures. This gives us many more choices but also presents much uncertainty as well. To some extent, we are at the mercy of economic downturns such as in two thousand and eight (2008).
Our savings must cover many unpredictable costs including healthcare. Although the income needed for traditional retirement is based on not ever working again, many people want to. Not only to supplement the budget but to stay engaged in life and doing something enjoyable that is less stressful and more flexible than full-time work.
When planned well, this type of retirement lifestyle provides many additional benefits including having a positive impact on our health. Planning the type of work experience we would like to have is an integral part of our semi-retirement process.
What being Semi-Retired can Look Like
There are many directions we can go here based on our individual interests and desires. Let’s toss around a few ideas of how we can create a semi-retirement lifestyle.
* Change of Location — there may be parts of the country or world that would be preferable to live for many different reasons, or for some “home sweet home” fits the bill perfectly well. In any event, there are many choices based on individual preferences and needs. To provide a few ideas here is an article on Affordable Places to Retire.
* Reduce Hours at Current Job — if you enjoy your current work this may be a viable solution. I considered this but then decided to pursue a different career in digital marketing. Not all jobs are conducive to this, but if they are it’s nice to retain your current wage per hour while working less.
* Do some Consulting — another option is to do some consulting in your main area of expertise. Working out of a home office with tax advantages while selectively choosing projects on which to work can be an ideal semi-retired setup.
* Some Part-Time Work — a part-time job may fill the bill perfectly for some. This reduces the hours and stress of full-time employment. This provides some extra cash and keeps a person busy and engaged.
* Pursue your Dreams — for some working in retirement is an opportunity to start up a new business or write that book that has been yearning to come out for years. Of course, there can be some risks in starting a business so do your homework. My preferred way to enjoy what I do and create an additional income is through digital marketing. Here’s my #1 Recommendation to get properly trained.
It does require effort and time to do the planning necessary to this type of life. This can be a fun process and it is a gateway to living the lifestyle that we most desire and will enjoy.
To get us started here is a Retirement Planning Guide from Investopedia full of practical tips and strategies to keep us on course. With this as a base then we can fill in the gaps based on our individual needs and desires. It’s all about having a retirement where we have all of our bases covered.
Now that we got the practical stuff out of the way we can concentrate on how we can maximize our enjoyment and define how we most wish to express our passions. Some of this will be through leisure and recreation, while other aspects will involve incorporating what we truly enjoy and care about into our work and business environment.
Some Pros and Cons of a Semi-Retired Life
Before we finish up here let’s go over some pros and cons of being semi-retired. Then we can truly say we understand what it takes to live this kind of lifestyle.t
There are some people who have actually retired early in life and were temporarily retired and then chose to return to work later in life. Some chose semi-retirement, while others returned to full-time employment for a company or a business in order to pursue existing passions and interests.
There are many scenarios whether it is early retirement, traditional retirement, mini-retirements, temporary retirement, or semi-retirement. Today we focus on some of the benefits and challenges of a semi-retirement lifestyle.
Here are some of the pros:
- Continuing a job or business we enjoy but reducing the time spent
- Creating more balance in our lives between work and relaxation
- Transferring into a job that is more in alignment with our true desires and interests regardless of what it pays
- Supplementing retirement income with a less stressful job
- Taxes will be comparatively low
- Creating a sense of purpose and staying engaged in life
- With added income, it is easier to maintain a desired lifestyle
- Less money is needed with a reduced lifestyle
- Eliminating the craziness of overwork
Now for some cons:
- Not taking the time to get clear on why we actually want to semi-retire
- Not planning for the move
- Leaving a career we love just because it sounds like a good idea
- Not determining which aspects of our lives we don’t like so we can determine the specific remedy
- Not being clear on what an ideal lifestyle would like before taking the plunge (not prioritizing the important stuff)
- Failure to ensure your partner agrees
- Not fully realizing you need to spend less than you earn from retirement funds and part-time income (you don’t want to deplete your savings)
The bottom line of what it takes to truly live a semi-retired life is for us to do our due diligence and planning ahead of time before making the plunge. The benefits and challenges then will be in plain sight so that we can make a decision that makes sense for us and our families.
This can be a wonderful way to maintain an enjoyable lifestyle while staying fully engaged in our lives. It has always worked for me to do my research and due diligence and then let go and follow my heart. I encourage all to do the same.
Enjoy each moment,