Retirement can be a jarring change, and many retirees endure a bout of loneliness when they leave their career. Very few people have saved so much for retirement that they couldn’t benefit from a little extra cash coming in through a part-time job or consulting work. But even if you saved and invested diligently for many years and are in a good financial position, there are still many reasons to consider semi-retirement. Here’s why many people prefer to ease into retirement rather than jump right in:
Work is fulfilling. Your job might be a drag after working in the same industry for 30 years, but most of us enjoy working and contributing to society. Work makes us feel useful, and it keeps us connected to the world. We live in a society that validates our existence through work, and it’s hard to break away from the convention. Semi-retirement is a good option because you can still contribute to society and see the positive impact from your effort, while also increasing the amount of time you have for leisure activities. If you don’t like working in the same field, you can always find something more fun to do.
Social life. A huge part of our social life is tied to work because we spend so much time in the office. Retirees spend much more time at home and usually lose contact with most former co-workers quickly. Working people are often very busy and can’t always spend much time with people who have left the company. Retirees who work part time can meet people and build a new social network so that they won’t feel so isolated.
Feed your passion. Retirement gives you more time to pursue your interests, and some people find a way to make money with their passion. If you know how to make and sell beautiful ukuleles, that’s a great way to generate income from your hobbies. Many retirees write a book, blog online or take on consulting work. Making some income doing work you enjoy is often the ideal retirement situation.
Keeping active. Unfortunately, many people take the path of least resistance in retirement. They watch a lot of TV and don’t get enough exercise. Working part time will keep your mind stimulated, and it will probably make you move around a little bit more and add some activity to your days. Many studies have shown that people who remain active and engaged are more likely to stave off memory loss and other age- related declines.
Give back. There can be a loss of knowledge when people retire completely. Retirees have a wealth of experience and expertise behind them that could help younger workers tremendously. It’s a shame to let those skills disappear. It would benefit society if retirees would give back by mentoring the next generation. Instead of retiring, retirees could consult part time or join a mentoring organization to help young folks get started.
Better finances. Semi- retirement allows you to generate some income and put off retirement account withdrawals. The longer you can delay claiming your Social Security benefit, the larger the checks will be. If your 401(k) and IRA accounts don’t contain enough cash to fund 30 years of retirement, putting off withdrawals will give your retirement savings a few more years to grow. You’ll also reduce the chance of depleting the fund because you’ll spend less time in retirement. Working part time for a few years can really stretch your retirement dollars.
Semi-retirement is a great option when you’re in your 50s and 60s. While you can’t work forever, working part time while your health permits has many physical, mental and financial benefits. A part-time job encourages you to be active and meet new people, and the financial benefit is great if your nest egg isn’t quite up to par. There will be plenty of time left for a full retirement when you can’t work anymore.
Joe Udo is a stay at home dad who blogs at Retire by 40.
More from U.S. News
10 Retirement Lifestyles Worth Trying
6 Alternatives to Traditional Retirement
10 Ways to Reduce the Cost of Retirement
6 Reasons to Consider Semi-Retirement originally appeared on usnews.com
