Dreaming of Semi-retiring? 4 things to consider

How can I semi-retire? I find it hard to imagine myself doing nothing. The traditional view of retirement where you work for someone else for 50 years then stop just does not work for me, I need to be doing something!

That does not mean I want to continue doing 40 hours a week, more to switch where I am spending my time. I enjoy work so do not want to give that up completely, however, I want to also have time to spend doing other things; walking, holidays, seeing the world, and spending time with family and friends.

What do you mean by Semi Retire?

The first question is, what do you mean by semi-retire?

You might be lucky enough that you can take your pension today and then simply work less or can reduce the time you spend working with a corresponding reduction in your income. Maybe, move to a 3-day work week or work for 6 months then holiday for the rest of the year.

Some will simply retire from their current job and get a less demanding job to keep them active. Many people move to a portfolio of jobs with a number of small (or even large) business opportunities combined with other things they want to do, whether that is charity, helping in the community, church or something else.

If you have built a successful business you may well be in a position where you can take a passive income while your team run the business for you. Many of the business owners ActionCOACH are working with are preparing their business for this.

What would change when you retired?

Many people have spent the last few years dreaming about the day they retire but have not actually thought about what they will do when the day comes! I know I can fill my time for a year or so but that has always been on the basis that I will be going back to work at some point, so I still have a purpose, nothing has really changed. Retirement however is more permanent.

Being semi-retired depends on what you want to do once you are retired.

Many people retire and move to their dream location somewhere else in the country or even emigrate! Others decide to move closer to their family. Either way can your current work move as well?

Retirement is also the opportunity to do those more time-consuming activities you don’t currently have time for. Develop a new skill such as learning to play a musical instrument or a new language, get better at art, spend more time with your partner, work in the garden, give back to your community. Traveling and seeing the world is firmly on my list of things to do!

How will you deal with the change in who you are?

Semi-retirement also brings the loss of part of a person’s identity in what they did and the position they held. For many, work is a big part of who they are, how they see themselves and how the world sees them. Ask yourself; how will you cope in moving to a lesser role, possibly from being the driver to taking a back seat while someone else leads your business?  How would you feel taking a job for someone else, possibly lower-skilled but giving you more time to do the things you want to do?

Let’s not forget for many, working less means less income, so you need to consider howmuch income you really need, versus having the lifestyle you want have? Are you too fond of material things, or does a simpler life and experiences matter most?

Figure out what you want your retirement to be?

So, I do absolutely think it is possible to semi-retire, although it depends on a lot of other factors in your life and more importantly what you want the next chapter to look like. If you own your own business you seem to have more options for semi-retirement than as an employee. I also think that with the rise of the gig economy the options for semi-retirement will increase, fuelled currently by the labour market shortage.

Figure out what you want to do, what retirement will be for you. Consider whether deciding to take semi-retirement is simply an excuse to not have to decide to retire?  Get advice on your options, in particular your finances and pension. Set your goal and put a plan in place to achieve it!

If you are a Ltd business owner who doesn’t have a plan for semi-retirement (or indeed full retirement) and you need a plan, I can help. Email me at rupertturton@actioncoach.com or book me for a complimentary 30-minute consultation.