How To Plan For a Working Semi-Retirement
Whether you are young or older, you may have to consider working in a semi-retired status before retiring. As is the case with most things related to retirement, its best to plan ahead. Just as you should plan for retirement, you should plan your semi-retirement activities.
Make Your Retirement Savings Last
You spend all of your life working for money. However, if you plan on working while semi-retired, why not make your money work for you? Every day, week and month you don’t have to dip into retirement savings means your retirement will last longer.
Calculate how much money you need to survive day-to-day while semi-retired. Brainstorm what kind of employment opportunities will suit your skills when you reach retirement age. You may end up working part-time, but any supplemental income is better than none.
Plot Your Semi-Working Life
There are many things you can do while working semi-retired. You can work as a consultant aiding a profession you worked in when you were younger. Research the profit viability of starting a home-based or small business.
Being older doesn’t mean you won’t be able to contribute to a workforce or community. A large segment of workforce demographics in the future will include elderly people. Plan ahead so you will work a job you desire instead of need while semi-retired.
Time Your Supplement Income Opportunities
Social Security benefits are not enough to live on for most retirees. The annual social security benefits are barely $10,000 a year. However, how much you benefit from social security depends on the age you start collecting it.
If you put off collecting your social security benefits until the age of 70, you’ll receive more money. At the age of 70, you will receive at 76% more in social security, than if you begin claiming at age 62. Any 401(k) benefits and assets you have should accrue in value considerably by this age as well.
Treat Semi-Retirement as a Test Run
Ironically, retirement can be a stressful period for retirees. It can be a difficult transition process. Most retirees go from working every day to sitting at home every day. Even retirees who can afford retiree commencement trips or events face coming home and contemplating a purpose.
You might love being fully retired after a lifetime of working. Or, you may slowly realize that it might not be for you. Being semi-retired can help you decide how you feel about retirement five or ten years before you actually retire.
Do you have a working semi-retirement planned? Let us know in the comments below!