US News notes that more and more people are starting to favor part-time retirement over full retirement. Some highlights:
Most older workers (65 percent) say they would ideally like to include some form of work in their retirement, according to a 2011 Harris Interactive survey. But only 4 percent of the survey respondents want to work full time in retirement. A quarter of older workers would prefer to work part time in retirement, and 36 percent want to go back and forth between periods of work and leisure.
Most of us would like to enjoy some time away from the hustle of the working world. And, yet, work does have positive aspects. Wouldn’t it be nice to have the best of both worlds, with time to enjoy retirement as well as time dedicated to work?
Part-time retirement also allows you to address one of my biggest retirement fears, which is becoming bored as a retiree.
Part-time retirement also allows you to address one of the biggest retirement fears most people have, running out of money.
In the past, there was retirement and early retirement. Now it appears that these are joined by part-time retirement (still working part-time after 65) and early semi-retirement (working part-time but doing it before the normal, "traditional" age of retirement.) Lots more choices these days, huh? Or perhaps they were always choices -- we're just seeing more people take advantage of all the options.
Personally, I am currently focusing on early semi-retirement that goes on well past retirement age (which I guess is then called part-time retirement.) ;-) Anyway, here's what I'd like to do over the next 20-30 years:
- Work full-time for several more years, saving a ton of money and getting my last big pre-retirement cost out of the way -- college for my kids.
- Shift into early semi-retirement -- earning enough to live on, so I don't need to withdraw any of my retirement savings. This will allow my savings to keep growing for many additional years. (Finding a part-time job that earns me enough to live on should be easy for two reasons: 1) We spend/live on well less than what I make every year and 2) at some point, my wife may want to go back to work as well.)
- Eventually, I probably won't be able to work even if I want to. As this becomes evident, then I can shift to living on my retirement income. While I know that I will be able to withdraw principal as well as earnings, I hope that we can have enough by that date to simply live on the retirement savings income. Obviously it all depends on how much we save in the meantime, how it grows, and the sort of income we can generate on the savings.
Lots to consider. Any of you thinking of the same sorts of issues?