7 Signs You’re Ready to Partially Retire

While many people dream of the day they can retire, some aren’t in as big of a rush to close that chapter of their lives. If you aren’t ready to dive headlong into a traditional retirement plan, partial retirement offers a solution.

Many partial retirees like having the ability to enjoy more downtime while simultaneously bolstering their nest egg. In addition to the financial benefits of maintaining some level of income, a partial retirement may also offer several emotional benefits as well.

As you explore your options, consider the signs below when deciding on an early retirement.

Fully retiring is a significant financial change. Without an income to rely on, many retirees lean on savings and Social Security benefits to cover living expenses. 

If you don’t have enough saved up for retirement yet, partially retiring can allow you to offset some (or all) of your living expenses with your continued income.

This may allow you to avoid dipping into your savings prematurely. Plus, delaying tapping into your Social Security benefits can increase the amount of your monthly benefit when you eventually decide to fully retire.

If you are in good health, you might not feel ready to completely walk away from paid work. After all, being in good health now could indicate that you have many active years ahead of you.

And while this is amazing, it means you’ll need to stretch your funds further, which means you may want to stay partially in the workforce while you can so that you can beef up your savings so you’ll be able to enjoy a long and financially secure life.

Although some people don’t like their jobs, there are those lucky people who land their dream jobs. If you’re one of the fortunate ones who wake up eager to punch the clock, it can feel impossible to walk away from your career.

The good news is that you don’t have to leave your dream job behind completely. Instead, you might consider a partial retirement to remain connected to your job.

Many employers will make accommodations to keep you on the payroll in some way due to your job experience. Consider approaching your employer to negotiate working fewer hours.

Even if you enjoy your job, you might be ready to spend more time with your nearest and dearest. For those who want a better balance, partial retirement could be the right fit. 

With fewer hours committed to working, you can spend more time with your family and on hobbies that matter to you.

While having more down time sounds like a dream to some folks, others prefer the stimulation of a career. Taking a partial retirement allows you to slow down slightly without quitting altogether.

If you keep your foot in the door at work, you’re less likely to get too bored with your newfound freedom.

If you have ample funds stashed away for a comfortable retirement, there’s nothing stopping you from taking a step back from work early. 

For retirees who don’t want to completely peel away from the working world, reducing your hours simply because you can is a good option.

A partial retirement doesn’t necessarily mean scaling back hours at your current job. Although a lightened workload with your current employer is one way to partially retire, another option is to pivot to an entirely new job. 

For anyone who wants to try their hand at something new before retirement, partially retiring could make sense.

For example, let’s say you’ve spent the last 30 years working a job that pays the bills. You might partially retire by taking a job at the local museum or teaching tennis lessons. Consider this a chance to try something new without completely giving up a paycheck.

When you retire completely, a lot of your valuable knowledge leaves the working world. If you want to keep making an impact, partially retiring allows you to stay connected to your work community and potentially pass on your knowledge.

For example, if you’re a lifelong teacher you may want to partially retire from the classroom and move into a part-time administrative position at the school. This way you’ll still be around to provide advice to the next generation of teachers.

A stress-free retirement isn’t a one-size-fits-all proposition. Instead, your retirement plan should reflect your unique situation and expectations. 

Spend some time determining how to maximize your retirement savings. One strategy is to partially retire as you build up additional funds for your later years.