Most people work throughout most of their lives to accumulate enough money for a comfortable and happy retirement. There has always been a clear line between your working and retired lives. However, many people have been considering semi-retirement lately for a variety of reasons. And even if you eventually decide not to stop working completely, you still need to prepare and find ways to support your family and yourself later in life. In this article, you will learn about semi-retirement and discover tips on how to make it work.
What Does Semi-Retirement Mean?
While people used to quit their jobs after reaching a certain age and go into full retirement, semi-retirement is becoming increasingly popular these days. With semi-retirement, people have a variety of options. Some of the popular decisions include quitting their regular job and working part-time, changing jobs and finding something they have always wanted to do for fun and not for a high salary, freelancing, volunteering, and more.
When it comes to the reasoning behind choosing this option instead of a classic retirement, there are also different approaches. Here are some of the reasons:
- Boredom: Living a full life while working normally and having a routine and then suddenly leaving all of this behind is not something that some people might want. For many retirees, life becomes very boring after quitting their jobs and having nothing to do. While some people dedicate all their time to hobbies, others prefer doing at least a little work.
- Financial situation: Sadly, not everybody has enough money to lead a comfy life after retiring. This is why people continue working, even if not at full capacity.
- Making a change: People often do not have enough time to do everything they want, and only by quitting their full-time jobs do they find the means to pursue their desires. Many retired people like to give back to their community and start volunteering or working part-time.
Regardless of your reasoning, semi-retirement might be a great option for you. Still, it is important to prepare in advance to have enough capital to leave comfortably under such conditions.
Tips for Preparing for Semi-retirement
Much like with classic retirement, it is better to start preparing for it earlier than later. Here are some tips on how you can start getting ready for your semi-retirement now:
- Create a plan: Only with a proper financial plan will you be able to see how much money you will need for semi-retirement. Evaluate your regular expenses and calculate how much capital you need to save up for living with a lower or inconsistent income after quitting a regular job.
- Consider passive income: It is always nice to have some additional sources of income, and people often invest money online to generate some passive revenue. If you are unsure where to invest money online, consider using alternative investment funds. Platforms like Quanloop allow making even small investments of one euro and withdrawing revenue conveniently. There are also risk management solutions to suit everyone's risk tolerance.
- Pay off the debts: Some of the biggest expenses are usually debts. It is dangerous to pay off any debt for a long time, especially if you leave it until your semi-retirement. To be financially secure, make sure to get rid of any debts before you quit your day job.
- Take care of your accommodation: For some people, it might go without saying, but it is crucial to pay off your home or apartment before semi-retirement. Paying rent or having loans will drain all your savings rather quickly.
- Monetize your passions: This is optional, but if you have a creative hobby, it is possible to monetize it and earn additional income while doing the things you like. You can sell fresh produce or flowers you are growing in your backyard, your paintings or knitted items, etc. There are so many forms of art that people pick up as a passion and do not have any space or purpose for the finished products. Selling them is a great way to support yourself and keep doing what you are doing.
It is possible for people to transition from semi-retirement to full retirement after some time, so make sure that you are prepared either way.