What is Part-Time Retirement?

Part-time retirement can be a great option for those who are nervous about transitioning into full-time traditional retirement or need a stronger financial cushion.

This approach can help de-risk your finances, and it's worth exploring to see if it's right for you.

When creating a retirement plan for a client, one of the things I often do is model what part-time retirement might look like for them compared to traditional retirement. Traditional retirement is a significant life and financial transition that can be challenging for some. For 30 or 40+years, you've had a daily routine that includes waking up, getting ready, eating breakfast, driving to work, working eight to ten hours, and then driving home. This routine is often done five days a week for several decades. The job might change, and the commute might differ, but the general routine doesn't. Then, one day, it all changes overnight when you retire. Understandably, this transition can be difficult for some.

However, it doesn't have to be all or nothing.

Part-time retirement is an option that allows you to gradually transition from full employment to full retirement over time. Research suggests that anywhere between 10% and 20% of retirees work in retirement, with many doing so for financial reasons. However, part-time retirement is not just for those who need extra money and cannot afford to retire fully. Even financially prepared retirees can benefit significantly from a part-time retirement. 

Many financially successful clients have adopted a part-time retired lifestyle, even though they could have easily afforded to retire completely.

They saw the advantages of staying engaged and in the game, opting for this part-time approach. While they received many financial benefits, the motivations behind working part-time weren't exclusively financial. They found fulfillment and purpose in continuing to work part-time, even if it meant taking on a different type of work or a different schedule.

If you're considering part-time retirement, you might be wondering what it would look like for you.

You may be wondering what type of work you could do or if anyone would hire you. The reality is that there are many options for part-time work, from consulting to teaching to freelancing. You could even start your own business or work for a nonprofit organization. The possibilities are endless, and it's worth exploring to see what might work best for you. 

In conclusion, part-time retirement can be an excellent option for those looking to de-risk their finances or transition gradually into full retirement. It's worth exploring to see if it's the right choice for you, and there are many options available for part-time work.