Semi-retirement Can Help Bridge the Gap Between Full-Time Work and Complete Retirement
Semi-retirement is a transitional phase between full-time work and complete retirement, allowing individuals to reduce their work hours or shift to less demanding roles while still earning an income. It’s an increasingly popular option for those who aren’t quite ready (or financially able) to stop working entirely but want more flexibility and time for personal pursuits.
Semi-retirement can take various forms, depending on an individual’s goals and financial needs. Some people scale back hours at their current job while others transition to part-time roles, freelance work, consulting or even starting a small business. Key advantages of semi-retirement include:
· Financial security. Provides a continued income, which helps preserve savings and delay drawing down retirement accounts.
· Mental and physical well-being. Promotes well-being by maintaining a routine and sense of purpose through part-time work.
· Flexibility. Allows for more personal time without fully giving up the benefits of working.
· Gradual transition. Eases the psychological shift from a career-focused life to full retirement.
A Six-Step Plan for Achieving Semi-retirement
Successful semi-retirement requires careful financial and lifestyle planning, including:
1. Financial assessment. Evaluate your current savings, retirement accounts, and income needs. Calculate how much you need to supplement your retirement savings with part-time work.
2. Flexible income streams: Identify potential income sources, such as consulting, part-time employment, or non-retirement investment accounts, to ensure you’re financially secure.
3. Healthcare coverage. Consider how you’ll maintain health insurance, especially if leaving a full-time job with benefits. Options might include Continuation of Health Coverage (COBRA), spousal coverage, or private insurance.
4. Social Security strategy. Delaying Social Security benefits can increase your monthly amount later. Decide whether to claim early or wait.
5. Skill assessment and career pivot. If you’re planning to shift industries or take on freelance work, upskill or retrain as needed before scaling back.
6. Lifestyle adjustments. Practice living on a semi-retirement budget to see if it’s sustainable.
By planning ahead, you can create a flexible, fulfilling lifestyle that bridges the gap between full-time work and complete retirement.
Informational Sources: Fidelity: “Guide to Working Less and Living More” (November 18, 2024); Smart Asset: “What Is Semi-Retirement and How Do You Do It? (May 29, 2024).
LPL Financial and its advisors are only offering educational services and cannot offer participants investment advice specific to their particular needs. If you are seeking investment advice specific to your needs, such advisory services must be obtained on your own separate from this educational material.
©2025 Kmotion, Inc. All rights reserved. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.
1. Mutual Funds and variable annuities are sold by prospectus only. Contact your financial professional to obtain a prospectus before purchasing any Variable Annuity or Mutual Fund products. Read the prospectus carefully before investing.
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. CEFCU and CEFCU Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using CEFCU Investment Services, and may also be employees of CEFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, CEFCU or CEFCU Investment Services. Securities and insurance offered through LPL or its affiliates are:
- Not Insured by NCUA or Any
other Government Agency - Not Credit Union
Guaranteed - Not Credit Union
Deposits or Obligations - May Lose
Value
Your Credit Union (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for advisory services. Please visit https://www.lpl.com/disclosures/is-lpl-relationship-disclosure.html for more detailed information.
The LPL Financial registered representative(s) associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.
