Have you heard about the new way to retire early? It’s called semi-retiring!
If you’re nearing retirement age or are already retired, you may be thinking about ways to reduce your workload and enjoy a more relaxed lifestyle. Semi-retiring may be the perfect solution!
Everything in life seems to be redefined, and retirement is no different. The traditional retirement, where you retire at age 65 and then do nothing but relax, is no longer the only option.
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What is Semi-Retirement?
Semi-retirement is a retirement option where you continue working at a reduced schedule. This could mean working part-time, or it could mean working fewer hours each week.
Basically, with semi-retirement, you’re still working, but you’re not working as much as you used to. This allows you more time to enjoy your retirement without completely giving up your income.
You should note that semi-retirement is different from downsizing, when you reduce your hours or take a pay cut to have more free time. With semi-retirement, you’re still earning the same salary, just working fewer hours.
Related Content: 14 Reasons We Decided to Semi-Retire in China
Why do People Choose Semi-Retirement?
There are several reasons why someone would choose to semi-retire. Here are some of the most common reasons:
1. They want to enjoy their hobbies and pursuits more
Everyone wants to have more time to enjoy their hobbies and interests. With semi-retirement, you can have that extra time without worrying about money.
As you get older, you may find that your hobbies and interests change. This is natural! Semi-retirement gives you the time to pursue new hobbies or rediscover old ones.
2. They want to spend more time with family and friends.
One of the best things about semi-retirement is that it gives you more time to spend with your loved ones. If you have kids or grandkids, you’ll finally have the time to attend their sporting events or go on family vacations.
You may also find that you have more time to spend with your friends. So whether you want to go on day trips or just have coffee together, semi-retirement gives you the time to do it.
3. Travel is a top priority
Do you love to travel? If so, semi-retirement is the perfect time to do it! With fewer work obligations, you’ll have more time to explore the world.
You can take longer trips and see more of the places you’ve always wanted to go. Or, you can use your extra time to take shorter trips more often. The choice is up to you!
4. Semi-retirees want to give back
Many people who semi-retire do so in order to have more time to volunteer or give back to their community. If you’ve always wanted to do more volunteering but never had the time, semi-retirement is the perfect solution.
You can use your skills and knowledge to help out at a local school, church, or non-profit organization. Or, you can become a mentor to someone who is just starting out in their career.
5. They’re not ready to retire completely.
For some people, the thought of retiring completely is just too scary. They’re not ready to give up their income or their work identity.
If this describes you, then semi-retirement may be the perfect solution. You can still work and earn an income, but you’ll have more free time to enjoy your retirement.
How to Decide When to Semi-Retire
It all depends on what type of lifestyle you want to live. It’s possible when you hit Coast FIRE, Flamingo FIRE, or Barista FIRE, you can start to see if you can semi-retire and live off of your investments.
Related Content: 9 Types of FIRE, Which One Will You Pursue?
There is no magic number for how much you need to have saved to semi-retire. However, it’s generally recommended that you have at least ten times your annual expenses saved before you make the switch.
So, if you spend $50,000 annually, you would need at least $500,000 saved before you could semi-retire. This may seem like a lot, but it’s not as difficult to achieve as you might think.
If you’re disciplined with your spending and invest wisely, you can reach this goal in 10-15 years. And, once you reach it, you’ll have the freedom to semi-retire and live the life you want!
It takes discipline to save up enough money to semi-retire. But, it’s possible to do it. If you’re disciplined with your spending and invest wisely, you can reach this goal in 10-15 years. And, once you reach it, you’ll have the freedom to semi-retire and live the life you want!
What kinds of jobs can you consider for semi-retirement?
Almost any job can be a good fit for semi-retirement. It all depends on how much time you want to work and what type of work you’re interested in.
A Few Ideas to Get Started
1. Freelance work
If you’re looking for a way to semi-retire but still earn an income, freelance work may be a good option. With freelance work, you can often set your own hours and work as little or as much as you want.
You can do several different types of freelancing, from writing and editing to graphic design and web development. And, thanks to the internet, you can often do this type of work from anywhere in the world.
2. Retail is always a good option
Another option is to work in retail. This can be a great way to semi-retire because you can often set your own hours and work as little or as much as you want.
And, since retail jobs are usually pretty physically active, they can help you stay healthy and fit. Just make sure to find a job you enjoy so you don’t hate it!
The downside to retail is that it doesn’t usually pay very well. So, if you’re looking to semi-retire and live a comfortable lifestyle, you’ll need to at least be in a management position or own your own store.
3. Start a small business
If you have an entrepreneurial spirit, semi-retirement may be the perfect time to start your own business. This can be a great way to earn an income while still having the flexibility to work when you want.
Of course, starting a business is a lot of work. And, it’s not always guaranteed to be successful. But, if you have a great idea and are willing to put in the work, it can be a great way to semi-retire and live the life you want.
4. Consulting is always an option
If you’re an expert in your field, you may be able to semi-retire and work as a consultant. This can be a great way to earn an income while still having the flexibility to work when you want.
And, since consulting jobs are usually project-based, you can often pick and choose which projects you want to work on. This can give you a lot of control over your work-life balance.
Of course, the downside to consulting is that it can be feast or famine. You may have a lot of work one month and then very little work the next. So, you need to be prepared for the ups and downs.
5. Teaching is a great option
These days you don’t need a degree in education to teach. There are several different ways you can semi-retire and work as a teacher.
For example, you could work as a tutor, teaching small groups or individual students. Or, you could teach classes online. This can be a great way to reach students from all over the world.
Let’s say that you were a nurse; you could teach at a local community college or even online. There are several different options available to you.
What are the Benefits of Semi-Retirement?
There are a number of benefits to semi-retirement. Here are a few of the most popular ones:
1. You can still earn an income
One of the biggest benefits of semi-retirement is that you can still earn an income. This can be a great way to supplement your retirement savings or help you pay for your lifestyle.
2. You can choose your own hours
Another big benefit of semi-retirement is that you can often choose your own hours. This can be a great way to have more control over your work-life balance.
3. Sometimes you can work from home
Another benefit of semi-retirement is that you can often work from home. If you don’t mind sitting in front of a computer all day, this can be a great way to have more control over your work environment.
You must understand that working from home isn’t as easy as it sounds. It can be hard to stay motivated when you’re not in an office environment.
4. It’s possible to focus on your passions and not just money
Before you became semi-retired, you had to focus on earning as much money as possible. But, now that you’re semi-retired, you can focus on your passions and not just money.
This can be a great way to find more enjoyment in your work. And it can also help you feel like you’re making a difference in the world.
5. It can help you transition into retirement
For some people, semi-retirement can be a great way to transition into retirement. If you’re not ready to retire completely, semi-retirement can be a great way to ease into it.
The idea of sitting around all day doing nothing can be a bit daunting. That’s why for many, retirement is something they dread.
But, with semi-retirement, you can still have a sense of purpose. And, you can still feel like you’re contributing to society.
What are the Downsides of Semi-Retirement?
Of course, there are also some downsides to semi-retirement. Here are a few of the most popular ones:
1. You may have to start at the bottom
It’s possible that you’ll have to start at the bottom in your new career. This can be frustrating, especially if you’re used to a high salary and a lot of responsibility.
2. Your skills may be outdated
Sometimes, people who semi-retire find that their skills are outdated. This can be a problem if you’re trying to enter a new field or start your own business.
3. You may not be able to earn as much money
It’s understandable if you get into an entry-level position and you’re not earning as much money as you used to. Just remember, it’s not about the money. It’s about finding a position that you enjoy and that meets your needs.
4. You may have to relocate
If you want to semi-retire, you may have to relocate. This can be a hassle, especially if you have a family.
5. You could feel like you’re not really retired
For some people, semi-retirement can feel like you’re not really retired. And that can be a problem if you’re at a point in life where you want to wind down. It’s easy to find yourself working more hours than you want to.
Semi-retirement can be a great way to enjoy the best of both worlds. You can still earn an income and have more control over your work-life balance. Just remember, there are also some downsides to semi-retirement. So, make sure you weigh the pros and cons before deciding.
For many, the decision to semi-retire is a great way to enjoy a more relaxed lifestyle. But it’s not for everyone. If you’re not ready to retire fully, semi-retirement could be an excellent option. But, if you’re at a point where you want to wind down, semi-retirement may not be the best choice.
It’s all about where you are in life and how you’re doing financially. Talk to a financial advisor if you’re unsure whether semi-retirement is right for you. They can help determine if semi-retirement is a good option for you.
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!